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PC dominates Internet games market
Wednesday, December 19 2001
by Matthew Clark


The PC will remain the number one vehicle for on-line gaming in the US despite
the increased availability of connected video game consoles, according to a new
study. 

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.