Online Gaming Will Be Key In Next Generation Consoles
The next generation of video games consoles will sell 47 million units between their expected launch in late 2005 and the end of 2010, according to a new executive briefing from Informa Media.
Online gaming will be one of the biggest growth areas for both Sony and Microsoft in coming years, with Sony expecting a ‘sweet spot’ of 10 million homes with both broadband and a PS2 games console by 2006.
The future generation machines from Sony and Microsoft will both emphasize online game play and both companies warn that all elements of the game industry, from developers to retailers, will have to take online into account to survive.
The report’s author, Toby Scott says: “Although we are only halfway through the current games cycle, the lines are being drawn for the next round. Sony is set to exploit the lead it established with the PS2, but will face a much stronger challenge from Microsoft, who is determined not to be left chasing Sony next time. Meanwhile, Nintendo seems set to play to its strengths and emphasize game quality and innovation over processor horsepower.”
The report also predicts that Sony’s current console – the PS2 – will sell 32 million units in Europe, with over 7 million sales in the UK alone. Scott says that this shows room for a lot more growth in the current gaming cycle.
Separate research from DFC Intelligence predicts that revenues from online console gaming will reach $1.9 billion worldwide by 2008. The majority of this, around $1.5 billion, will come from gaming pay services, whilst the remaining $0.4 billion will be generated via advertising revenues (see Online Gaming Revenues To Pass $5bn By 2008, Says Report).
A earlier report from Informa Media forecasts that the global broadband internet gaming market will be valued at $4.1 billion by 2010. This includes gaming online via systems other than consoles, such as PCs (see Gaming Revenues To Hit $7bn By 2010, Says Informa).