The slowing economy does not appear to have hurt the on-line gaming industry. In fact, according to research by In-Stat, gaming subscriptions are expected to stay strong due to a sizable base of installed game consoles, and growing consumer awareness and comfort with on-line gaming.
In a research report called ‘Despite Slowing Console Sales, Online Gaming Subscriber Growth Continues Worldwide’, the high tech research firm predicts that console and handheld subscriber growth combined will grow more than 20% between 2005 and 2013.
"Unit sales of game console will decline moving into 2010, as a result of both the weak economy and a peak in each vendor’s video game console lifecycle," said In-Stat analyst Stephanie Ethier, in the press release. "The key vendors, including Microsoft, Sony and Nintendo, are staking out their online strategy to generate incremental revenue and promote brand loyalty."
An increase in on-line gaming is bound to place additional strain on all Internet providers. If these numbers prove accurate, a stable and fast network will be the key to success for ISPs in the future.
Recent research from In-Stat also found that:
– In 2008, total video game console unit shipments reached 88 million worldwide, up 7% from worldwide unit shipments in 2007.
– Worldwide broadband subscriptions are expected to reach 562 million in 2009. The combination of broadband, installed home networks, and pervasive Wi-Fi in gaming devices will fuel on-line gaming subscriber growth.
– Each of the three key vendors is positioned to generate hundreds of millions of dollars in annual on-line gaming revenue from on-line service subscriptions, download revenue and/or on-line advertising.
– Microsoft’s Xbox Live service is predicted to lead, with projected revenue of over $1 billion annually by 2013.
