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Networked Gaming: Driving the Future

AN INDUSTRY REPORT FROM PARKS ASSOCIATES
By Yuanzhe (Michael) Cai, Director, Broadband & Gaming, and Peter Shackelford, Analyst

Publish Date: Dec 05
Purchase Report Online

SYNOPSIS

Gamers are getting connected! More than 50% of U.S. Internet gamers spend time playing games against others. In addition to LAN parties filled with gaming PCs, cold pizzas, and caffeine-loaded drinks, gamers have an increasing number of options, including massively multiplayer online (MMO) gaming, multiplayer Internet gaming, online console gaming, and multiplayer mobile gaming.

This report discusses consumer adoption of networked gaming, including profiles of networked gamers and interest in connected and cross-platform gaming. In addition, it covers the technology solutions enabling such services and examines the industry impact and revenue opportunities for game developers, hardware / equipment manufacturers, and broadband service providers.

“The two primary drivers for online gaming are networked gaming services and digital distribution,” said Yuanzhe (Michael) Cai, director of broadband and gaming for Parks Associates. “Over the next four years, the gaming industry will no longer depend solely on retail sales and instead will see more balanced and diversified business models.”

Download PDF of Table of Contents

The Bottom Line is a concise, executive-level summary of the current state of the market, evolutionary path, and the implications for companies doing business in this space.

A Parks Associates’ Resource Book contains a wealth of consumer survey data and company profiles—a must-have reference for product/market planning.

CONTENTS

The Bottom Line

1.0 Research Methodology
   1.1 Consumer Data
   1.2 Companies Profiled

2.0 Classification of Networked Gaming

3.0 LAN Gaming
   3.1 LAN Gaming and Derivative Business Opportunities
      3.1.1 Home Networking Vendors
      3.1.2 Broadband Service Providers
      3.1.3 Game Server Providers and VAS Providers
   3.2 LAN Gaming on Portable Game Players

4.0 Casual Multiplayer Internet Gaming

5.0 Massively Multiplayer Online Games
   5.1 MMOG Value Chain and the Dominant Business Model
   5.2 Market Overview: Challenges and Opportunities
   5.3 Emerging Business Models
      5.3.1 Ad-Supported Model
      5.3.2 Content Expansion Model
      5.3.3 Pay-to-Play Model
      5.3.4 Avatar-based Revenue Model and Micro-payment
      5.3.5 Secondary Market
      5.3.6 MMOG Aggregators

6.0 Online Console Gaming
   6.1 Market Overview
   6.2 Online Gaming on Current-Gen Game Consoles
   6.3 Online Gaming on Next-Gen Consoles
   6.4 The Impact of Online Console Gaming on PC Gaming

7.0 Networked Mobile Gaming
   7.1 Mobile Gaming Market Overview
   7.2 Multiplayer Mobile Gaming
   7.3 Market Outlook

8.0 Cross-Platform Networked Gaming
   8.1 The Concept of Pervasive Gaming and Cross-Platform Gaming
   8.2 Cross-Platform Networked Gaming Market Outlook

9.0 Other Potential Business Opportunities
   9.1 Networked In-Game Advertisement
   9.2 Digital Distribution
   9.3 The Flickrization of Online Gaming
   9.4 VoIP Solutions/Services

10.0 Market Forecasts

11.0 Important Market Implications

Resource Book

1.0 Consumer Adoption of Electronic Gaming
  
Gamer Segmentation
   Gaming Platforms and Gamer Demographics

2.0 Consumer Adoption of Networked Gaming
  
Gaming Alone vs. Gaming with Others
   Demographics of Networked Gamers
   Monthly Expenditure on Networked Gaming
   Preferred Genres for Networked Gaming

3.0 The Impact of Networked Gaming on Technology/ Service Adoption

4.0 Consumer Interest in Cross-Platform Networked Gaming

5.0 International Consumer Perspectives

6.0 Company Profiles

   Blizzard
   Electronic Arts
   Emergent Game Technologies
   Funcom
   Gameloft
   IBM
   Gamespy/IGN
   Linden Lab
   Massive Inc.
   Microsoft
   NCsoft
   Nintendo
   Qualcomm
   Sony
   Square Enix
   Sun Microsystems
   Valve
   Yahoo!

Figures

The Bottom Line

Number of Frequent Online Gamers in the U.S.
Adoption of Networked Gaming
Home Networking Products Designed for Online Gaming
Broadband Service Providers Catering to Gamers
Selected Game Server Providers (GSPs)
Comparison of Major Portable Game Players
Casual Game Services and Multiplayer Offerings
A Simplistic MMOG Breakeven Analysis
MMOG Value Chain
MMOG Market Share (June 2005)
Cancelled and Discontinued High Profile MMOG Titles
The Influence of World of Warcraft on Major MMOGs (March-June 2005)
Diversified Price Plans Offered by NCSoft
Percentage of Internet Households That Own Game Consoles and Average Number of Game Consoles Owned (2002-2005)
Cumulative Worldwide Shipment of PS, PS2, Xbox, and GameCube and Number of Online Console Gamers (2005E)
Business Models and Features of Current-Gen Online Console Gaming
Platform and Online Features: Xbox 360 vs. PS3
Mobile Gaming Services from Major U.S. Carriers
Importance of Having a Certain Multimedia Function on Most Frequently-used Mobile Device
Examples of Multiplayer Mobile Games
The Concept of Pervasive Gaming
Percentage of Internet Users Playing Games on Multiple Platforms
The Appeal of Free Advertisement-Supported Games among Asian Gamers
Major Networked In-Game Advertisement Companies and Solutions
Third-Party Voice Applications
U.S. Forecast for Networked Gaming (2005-2009)
Itemized Networked Gaming Revenue Forecasts (2005-2009)
Change of Percentage Breakdown of Total Networked Gaming Revenue (2005 vs. 2009)

Resource Book

Gamer Segmentation based on Self-Perception of Gaming Behaviors
Gamer Segments by Age
Gamer Segments by Gender
Types of Hardware Platforms Used for Electronic Gaming
Types of Hardware Platforms Used for Electronic Gaming by Gender
Types of Hardware Devices Used for Electronic Gaming by Age
Types of Hardware Platforms Used for Electronic Gaming by Household Income
Types of Gaming Platforms Used among Gamer Segments
Types of Gaming Platforms Used by Number of Children Living at Home
Percentage of Frequent Online Gamers (At Least Weekly)
Percentage of Gaming Time Spent Playing against/with Others
Percentage of Gaming Time Spent Playing against/with Others by Age
Percentage of Gaming Time Spent Playing against/with Others by Gender
Percentage of Gaming Time Spent Playing against/with Others by Number of People at Home
Percentage of Gaming Time Spent Playing against/with Others among Gamer Segments
Percentage of Gaming Time Spent Playing against/with Others: MMOG vs. Non-MMOG Gamers
Adoption of Networked Gaming
Adoption of Networked Gaming by Age
Adoption of Networked Gaming by Gender
Adoption of Networked Gaming among Gamer Segments
Monthly Expenditure on Networked Gaming
Monthly Expenditure on Networking Gaming by Type of Networked Games a Gamer Plays
Monthly Expenditure on Networked Gaming by Age
Monthly Expenditure on Networked Gaming by Gender
Monthly Expenditure on Networked Gaming by Number of Children at Home
Monthly Expenditure on Networked Gaming among Gamer Segments
What Kinds of Games Are You Most Interested in Playing against Others through a Network?
Preferred Networked Gaming Genres by Age
Preferred Networked Gaming Genres by Gender
Preferred Networked Gaming Genres among Gamer Segments
Preferred Genres for Networked Gaming among Different Types of Online Gamers
Performance of Primary Home PC: MMOG vs. Non-MMOG Gamers
Type of Graphics Card Solution: MMOG vs. Non-MMOG Gamers
Preferred Brands for Graphics Cards: MMOG vs. Non-MMOG Gamers
Ownership of Integrated Headsets among Online Gamers
Adoption of PC Software among Different Online Gamers
Ownership of Different PC Hardware among Different Online Gamers
Adoption of Home Networks by Gamer Segments
Important Influencers for Satisfaction Level with Broadband Service: MMOG vs. Non-MMOG Gamers
Interest in Receiving Full-Length/High-Quality Movies from ISP among Networked Gamers
Percentage of Internet Users Playing Games on Multiple Platforms
Percentage of PC and Console Gamers Playing Games on Both Platforms
Interest in Cross-Platform Networked Gaming
Interest in Cross-Platform Networked Gaming by Age and Gender
Interest in Cross-Platform Networked Gaming by Gamer Segments
Interest in Cross-Platform Networked Gaming by Pecent of Gaming Time Spent Playing with/against Others
Interest in Cross-Platform Networked Gaming by Type of Networked Games Currently Played
Interest in Cross-Platform Networked Gaming by Gaming Platform Currently Used
Global Comparison: Gaming Capabilities on a Cell Phone
Global Comparison: Playing Games on a Cell Phone
Global Comparison: Frequent Online Gamers
Global Comparison: Paying for Online Gaming
Global Comparison: Online Gaming Habits
Global Comparison: Paying for Online Games by Gender
Global Comparison: Paying for Online Games by Age
Global Comparison: Frequent MMOG Gamers by Gender
Global Comparison: Frequent MMOG Gamers by Age
Global Comparison: Frequent FPS Gamers by Gender
Global Comparison: Frequent FPS Gamers by Age
Global Comparison: Internet Penetration (YE 2004)
Vivendi Universal Games: Financial Overview
Electronic Arts: Financial Overview
Gameloft: Financial Overview
IBM: Financial Overview
Microsoft Financial Overview
Number of Xbox Live! Subscribers
NCsoft: Financial Overview
Nintendo Financial Overview
Nintendo: Networked Gaming Devices/Services
Qualcomm: Financial Overview
Sony: Financial Overview
Sony: Networked Gaming Devices
Square Enix: Financial Overview
Sun Microsystems Financial Overview
Sun Microsystems: Networked Gaming Solutions
Yahoo! Financial Overview

ATTRIBUTES

Authored by: Yuanzhe (Michael) Cai and Peter Shackelford
Executive Editor: Tricia Parks
Published by: Parks Associates

© December 2005 Parks Associates
Dallas, Texas 75230

All rights reserved.  No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America. 

Disclaimer
Parks Associates has made every reasonable effort to ensure that all information in this report is correct.  We assume no responsibility for any inadvertent errors.

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