In a multi-user game, gamers acquire the game and interact with other players and the gaming environment on a central server via the network, in real-time or near real-time. Client game software is located on the gamer’s PC or console and this interacts with the server. There is normally a subscription for premium games, although an increasing number of highly popular free games are in circulation.
The key feature of online games is that the gamer can play with other people in a real-time environment via the internet. Fantasy, ‘dungeons and dragons’ style games are the most popular genre and are usually paid for via monthly subscription. World of Warcraft remains the market leader. Its publisher reported over 10 million subscribers by January 2008.
Online gaming has been dominated by Massively Multiplayer Online Games (MMOGs), which have generated substantial user bases, but it is a high-risk genre with games requiring high upfront and ongoing support and marketing costs. Two alternatives to this model are becoming increasingly popular.
Games consoles with broadband modems allow multi-player interaction. Microsoft’s Xbox Live service is leading the field in online services for consoles. Microsoft reported 12 million subscribers by May 2008, up from 6 million subscribers in March 2007. Virtual worlds, exemplified by Second Life, provide an alternative to ‘playing’ online and offer a more user-generated experience.
Strong growth in China. China is now the largest market for World of Warcraft in terms of subscriber numbers, although revenues are much lower. Games like Yulgang have tens of millions of play-for-free users. Gaming also has a presence in the real economy, as ‘gold farmers’ in China play to accumulate points and virtual resources that they can sell for cash.
Different business models. Although the subscription model remains popular, some games use different ways of generating revenue, for example using the sale of virtual property. Pre-pay is important in some markets.
Next generation consoles. Microsoft’s Xbox Live service for the Xbox 360 is the leader here, helped by the high price and later launch of Sony’s PS3 (sold at a loss by Sony). Sony has delayed the launch of its Home virtual world for the PS3. Blockbuster games, such as Grand Theft Auto IV, generate large revenues. Nintendo’s simpler Wii has sold more quickly than either the Microsoft or Sony console.
Virtual Worlds. Second Life has become widely known, but will it appeal to as many people as the more gaming-based experiences such as World of Warcraft? Less sophisticated worlds like Habbo Hotel have millions of regular users.
This profile has been updated. It includes information on the next generation of consoles, including the Wii. It also has data on Virtual Worlds including Home and Habbo Hotel. The profile also includes revenue and user estimates for 2006, plus data from Point Topic’s January 2008 broadband user survey.
The premium data has been removed from this profile
As a non-subscriber, you can only see the overview for this profile.