Suggest articles Comment articles Print article Share this article on FacebookShare this article on TwitterShare this article on LinkedinShare this article on RedditShare this article on PinterestExpert author Noel Crowe
Computers and video games have become very popular. Interest in fun free online games is growing significantly, especially over the Internet.
Despite the growing popularity of YouTube, MySpace, and Facebook, gaming remains the king of online entertainment driven primarily by casual gaming activities.
Sites such as Yahoo Games and EA’s Pogo.com provide users with access to rich, ad-supported free online games, where sponsors provide options for branding opportunities, display, and banner ad placement.
Online gaming for consoles could become a 10.5 billion business by 2011, up from 981 million, according to market research firm IDC.
In 2007, online console revenue accounted for 2.5% of total global video game Valorant coaching market revenue, including console and handheld hardware and software revenue. By 2011, revenue from connected consoles will account for 18.6% of total market revenue.
Even as subscription revenues from premium online services and games increase from 476 million to more than 2.4 billion, their share of online console revenues has declined from 48.5% to 23.2%. will decrease to %.
Advertising revenue from sponsored services, in-game advertising, and product placement on connected consoles will reach $12 million in 2007, marking the first significant online console advertising spend. Advertising revenue will grow to $858 million in 2011 and will account for an 8.2% market share of online revenue.
In the Pacific and Canada, online growth was second only to wireless (16.1% and 13.9% respectively). Other trends are more regional. The in-game advertising market is expected to grow by 64% reaching 2 billion in 2011 at a CAGR of 14.3%, with most of this growth coming from online games.
Driven by next-generation consoles and handheld devices and the growing penetration of broadband and wireless technologies, the video game industry is ripe for opportunity. “The growth of the platform allows us to reach new demographics,” said Stefanie Kane, a partner in PwC’s entertainment and media business unit, saying that handheld gaming devices have brought more women to the market and that cable and TV-on-demand channels have entered the market. We will broaden our base even further. “There’s a lot of unlocked potential,” she says.
