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A report released by Jupiter Media Metrix on the gaming market predicted that while the number of American households owning a games console connected to the Internet will increase from 700,000 in 2000 to 12.3 million by 2006, people who play games on-line via their PCs will continue to account for most of the gaming subscription revenue.
Jupiter forecast that subscription revenues from on-line PC games will be USD1.5 billion by 2006, while similar revenues from connected console gaming will only reach USD250 million in the same period. It also said that the on-line PC gamer audience will grow 59 percent to 101.3 million people by 2006, up from 63.5 million in 2001.
"Stakes for the connected console video games market are growing rapidly, but don't signal a gold mine quite yet," said Jupiter analyst, Billy Pidgeon. "Subscriptions for on-line PC games will continue to exceed subscriptions for on-line console games in the immediate term. By the end of 2001, when consoles from all three games system manufacturers are in play, Jupiter forecasts that there will be over 100 million console gamers in the US. Even though the new generation of consoles will not deliver a true breakthrough in on-line functionality, they represent a significant step forward in revenue potential."
Pidgeon added that investment in on-line gaming for video console makers will begin to pay off after 2006 when broadband penetration increases in the US and the current generation of consoles are ready for replacement.
The Jupiter study also found that 46.7 million home computer users in the US played a PC-based game application in October, which was up 10 percent from January when the figure was 42.4 million users. However, while the number of people who used PC game applications increased, the percentage of PC games among all computer users decreased slightly from 52 percent in January 2001, to 48 percent in October 2001.
Not surprisingly, bundled games were the most popular among those played in October. Top of the list was Solitare with 21.3 million users, followed by Freecell (14.8 million) and Hearts Network (6.6 million). Among store-bought titles The Sims was number one with 1.6 million users, Diablo II was second with 624,000 users and third was Command & Conquer: Tiberian Sun with 563,000 users.
Jupiter also said that nearly half of all US consumers that own a video games system will purchase a new game console or handheld gaming device during the Christmas period.
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