Our friends over at Parks Associates have recently released some more outstanding research and predictions regarding the gaming industry. Their most recent report: Connected Consoles: Gaming, Media, and Beyond predicts that gaming console revenues will reach a staggering $8 billion by the year 2013.
Parks Associates predicts that revenue streams from digital video distribution (think Xbox/Netflix), downloadable games and content, virtual worlds and avatar-based microtransactions, multiplayer gaming services, and dynamic in-game advertising will account for these numbers.
“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, Parks Associates. “Among the different online revenue opportunities, digital video distribution and downloadable games and content are the most promising.”
The reports goes a step further to reveal that among the “big three” console leaders (Xbox, PS3, and Wii), Microsoft currently dominates the online content and service market, but Sony and Nintendo are making strong headway into the field as they ramp up their base of connected customers and diversify monetization models.
“Led by Microsoft’s success in Xbox Live, all three console makers are dreaming up many innovative offerings to entice console households to get connected and spend more money,” Cai said.
In addition to top findings on the current state of console play, Parks Associates study even goes a step further and analyzes new console related capabilities, services, and business models. These new models include: online multiplayer gaming, virtual worlds, dynamic in-game advertising, and digital delivery. The study outlines the impact of game consoles on other industries and forecasts revenue growth and market share.
To hear more from Yuanzhe ‘Michael’ Cai, be sure to attend his session “Games of Tomorrow and the Future of MMOGs” at the Digital Media Wire’s NY Games Conference on September 26th.
Tags: Broadband, business, business models, Cai, digital delivery, digital video distribution, downloadable games, game consoles, gaming industry, gaming media, gaming services, Microsoft, mmogs, Netflix, revenue opportunities, revenue streams, virtual worlds, Wii, Xbox, xbox live, Yuanzhe
