Business Services Industry

Online game sales and subscription revenue will triple to $1.1 billion by 2008, says Yankee Group.(MARKET INTELLIGENCE)

Internet Business Newsletter, August, 2004

Over the course of just a few years, online gaming has grown from a nascent industry to $353 million in direct sales and subscriptions revenue and $450 to $550 million in advertising.

Although software and hardware revenue fluctuate, online revenue grows steadily, according to the Yankee Group report, Online Video Gaming Will Plug Publishers, Home Net Vendors and BSPs into New Revenue. Revenue from the sale of video game consoles is significantly affected by the console life cycle. Originally priced at $299 when they debuted, video game console MSRPs will fall to $79 to $49 within the next several years.

"Console growth is negatively affecting CD-ROM based PC game sales," says Michael Goodman, Media & Entertainment Strategies senior analyst. "PC...

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