Online tipped to take one third of all games revenue by 2011

Stuart Corner
Wednesday, 12 September 2007 05:10

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Market research company, Strategy Analytics, has valued the global online gaming market at $US4 billion and is forecasting this will treble in the next five years to represent approximately one third of the total games software market.

According to Strategy Analytics, online games is already the largest category out of the three main online entertainment markets (music, games and video).  “The rapid growth of the addressable market for digital distribution of both PC and console games will help clear the way for distribution of mainstream hit titles which has up to now been restricted to the physical retail channel,” said Martin Olausson, director of digital media research at Strategy Analytics.

"The main driver for sustained growth in the online games market will be the continued uptake of broadband services around the world," added David Mercer, principal analyst at Strategy Analytics. “Additionally, the very lucrative revenue opportunity in both the massively multiplayer segment and the electronic sell through market will continue to attract new entrants into the online games market.”

Strategy Analytics estimates that the global online games market generated $3.8 billion in 2006 and projects that the market will grow with a compound annual growth rate (CAGR) of 25.2% in the 2007–2011 forecast period to reach $US 11.8 billion and represent approximately one third of the total games software market by 2011.