Report: Web-Connected Game Consoles to Generate $8B in 2013

Authored by Mark Hefflinger on September 5, 2008 - 7:28am.

Los Angeles - Sony (NYSE: SNE), Microsoft (NASD: MSFT) and Nintendo are expected to generate over $8 billion in global revenue from online content and services for their Internet-connected game consoles, according to a report from market research firm Parks Associates.

The revenue will come from digital video distribution, downloadable games and content, virtual worlds and avatar-based microtransactions, multiplayer gaming services, and dynamic in-game advertising.

Microsoft's Xbox Live currently "dominates" the online content and services market, the firm said, but Sony and Nintendo are gaining ground.

"Broadband connectivity, now a common feature for game consoles, is a key enabler for new business models," said Yuanzhe (Michael) Cai, director of broadband and gaming at Parks Associates.

"Among the different online revenue opportunities, digital video distribution and downloadable games and content are the most promising."

(Disclosure: Parks Associates is a sponsor of Digital Media Wire.)

Related Links:
http://snipurl.com/3ne1i

http://www.parksassociates.com

Published in DMW Daily, September 5, 2008

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Comments

$8 Billion?

Submitted by microtransaction (not verified) on September 7, 2008 - 10:41pm.

While 5 years out can be a (relative) eternity in the gaming world, it looks like Parks Associates/Pearl Research has compiled a massive amount of data and made their prediction. This wouldn't be the first time that Parks has gazed into the crystal ball and been correct. Based on these numbers, let's hope that they've got it right this time as well!