XBOX-HQ.COM - Online Revenues Soar in 2007

A new study forecasts online console revenue will hit $583 million this year, as gamers become increasingly accustomed to downloadable software and paid subscriptions.

"By the end of 2007, over 31 percent of online capable videogame consoles in North America will be in active online use by 14 million online console gamers," said IDC analyst Billy Pidgeon in a statement Friday.

This growth comes from subscription sales (mainly from Xbox Live), downloadable content and advertising. The increase in revenue "represents the largest growth in the console software sector," according to Pidgeon.

"In North America alone, online console revenue will triple from $133 million in 2006 to $583 million in 2007," he added. [Actually, they'd more than quadruple, according to IDC's figures - Ed.]

Meanwhile, he suggested that retailers need to adapt quickly to the download trends. He expects traditional third party retailers' revenues to increase 19.5 percent over 2006, but online downloadable content will see soaring growth of 1,029 percent and subscription growth of 158 percent.

"In 2007, game-related downloadable content derived from manufacturers' proprietary online console networks will reach $296 million, while subscription revenue will increase from $107 million in 2006 to $277 million," predicted Pidgeon. "While software sales are still significant -- increasing from $8 billion in 2006 to $9.5 billion this year -- content sold, accessed or downloaded online to videogame consoles over manufacturers' proprietary networks will remain the industry's most exciting growth opportunity in this hardware cycle."

Defining gamers

In a separate study from IDG Entertainment, that research firm saw fit to define five different types of gamers to help marketers understand gamers' motivations.

As provided by IDGE:

Core Gamers: Core Gamers choose gaming as their main form of entertainment and want to maximize their time gaming. They prefer gaming over going to the movies or out to dinner.

Status Gamers: Status Gamers are proud of their gaming skills and enjoy being the first to try the newest and hottest titles. They also like to discuss their gaming experiences at school or work.

Social Gamers: Social Gamers view gaming as a communal experience. They prefer to play games with people they care about, forming a social link, and coordinate social functions around gaming.

Active Gamers: Active Gamers prefer games where movements are reflected in the game and allow gamers to get out of their chairs. They use gaming as a physical release.

Casual Gamers: Casual Gamers use gaming as an emotional release and as a way to play different roles. Casual gamers view gaming as a secondary form of entertainment and don't feel the necessity to be the first to try a new game.

News-Source: http://next-gen