Online Gaming To Top $13bn By 2011??? News

Revenues generated by online gaming is set to increase by nearly 400% by 2011, if figures from the latest paper to be published by market research company DFC turn out to be accurate. With continued growth in broadband connectivity, and online functionality as standard in the next-generation consoles, the company estimates that the market in online gaming will grow from the $3.4 billion (£1.82 billion) set in 2005 to around $13 billion (£6.97 billion) in five years time.

As well as the likes of MMOs, online gaming through Xbox Live, and casual net based titles, recent trends also point to the increased revenue from digital distribution (such as Valve's Steam system) and micro-transaction models adopted by several companies as future growth areas.

"Digital distribution and virtual item sales have started to do very well in certain Asian markets and these distribution models are expected to start having increased success on an international basis," says DFC analyst Alexis Madrigal.

"Casual games have been the best at attracting advertisers, but they are now finding a great deal of growth from subscription and digital distribution models. Asian markets with products like Kart Rider, and Western products, like Habbo Hotel, are showing how a virtual item purchase model can work for games that have traditionally been advertising or subscription supported."

One area that might stifle growth for the sector is the rarity in which titles gain international success, with the report citing World of Warcraft as a true success on the global stage.

We'll have more news shortly...