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June 23, 2011

Firm forecasts huge growth in online market, not sure what Nintendo will do with Wii U's online

The following information comes from DFC Intelligence's new Online Game Market Forecasts...
- overall worldwide revenue for online games (for both PC and consoles) will grow from $15.7 billion in 2010 to nearly $29 billion in 2016
- this includes revenue from subscriptions, online usage, online advertising in games and digital downloads
- "consumer acceptance of new business models such as buying digital goods continues to grow at a rapid pace."
- sales from subscriptions, online usage and virtual items is expected to increase 75% from 2010 to reach nearly $17 billion by 2016.

“Our overall forecasts for the online game industry have increased slightly. However, we have lowered our forecasts for online games on consoles and raised our forecasts for online games via the PC. The Wii U is the only new console system on the horizon and Nintendo has never had a major focus on online games. More importantly the short lifecycle and fragmented nature of console hardware can make it hard for companies to try creative new business models. (Online attacks like what happened to Sony are) likely to mean manufacturers and distributors in the console space take a more conservative attitude."

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