Online content and services to generate over US$ 8bn for game console manufacturers by 2013, predicts Parks

September 4, 2008 - Online content and services for Internet-connected game consoles will generate over US$ 8bn in global revenue by 2013 for Microsoft, Sony and Nintendo, according to a new study by Parks Associates.

The study, called "Connected Consoles: Games, Media and Beyond", forecasts revenue streams from digital video distribution, downloadable games and content, virtual worlds and avatar-based micro-transactions, multiplayer gaming services and dynamic in-game advertising. The report also reveals that out of the "big three" game console manufacturers, Microsoft currently dominates the online content and service market, but Sony and Nintendo are gaining ground as they ramp up their base of connected customers and diversify monetisation methods.

“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. 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."