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Microsoft Corp.

Console and Handheld Online Gaming Market to Exceed 30 Million Subscribers by 2009

Strategic Insights

— 2 min read

Worldwide console and handheld online gaming subscribers have grown significantly, with the market expected to reach 30 million by 2009, according to In-Stat. The industry is expanding rapidly due to the increasing popularity of video game consoles and handheld game consoles. Microsoft is the only console maker to launch a paid subscription service, and its release of the Xbox 360 and additions to its subscription service are expected to accelerate its growth. Sony, on the other hand, currently offers free online console subscriptions to reinforce customer loyalty, while Nintendo has taken a hands-off approach to online console gaming but is aggressively expanding its handheld console gaming network.

Key Takeaways:

  • The worldwide console and handheld online gaming subscriber market is expected to reach 30 million by 2009, growing from 3.4 million in 2004.
  • Microsoft's release of the Xbox 360 and additions to its subscription service are expected to accelerate its growth to just under 50% annual subscriber growth between 2004 and 2009.
  • Sony currently offers free online console subscriptions to reinforce customer loyalty, citing a paid service as too large a barrier to console online gaming.
  • Nintendo has taken a hands-off approach to online console gaming but is aggressively expanding its handheld console gaming network with Wi-Fi hotspots in Japan, North America, and Europe.
  • Sony has launched several networked gaming titles for its PSP handheld console in 2005, but has not been as active as Nintendo in setting up hotspot networks or marketing the online service.
  • In-Stat's report, "Console and Handheld Online Gaming: Overshadowing the PC," provides forecasts for online gamers annually through 2009 for game console and handheld units, including annual installed base, number of subscribers, subscriber revenue, and additional revenue garnered through paid downloads.
  • Analysis is provided for console online strategies of Sony, Microsoft, and Nintendo, as well as handheld online strategies of Sony, Nintendo, and Nokia.

Statistics:

  • Worldwide console and handheld online gaming subscribers: 3.4 million (2004), expected to exceed 30 million by 2009.
  • Microsoft's annual subscriber growth: 49.9% (2004-2009).
  • Sony's current online console subscriptions: free.
  • Nintendo's handheld console gaming network: launched in Japan, North America, and Europe, with Wi-Fi hotspots.
  • PSP networked gaming titles: launched in 2005.
  • In-Stat report price: $2,495.

Sources:

  • In-Stat, "Console and Handheld Online Gaming: Overshadowing the PC" (#IN0501852CM)
  • In-Stat, http://www.in-stat.com
  • Reed Business Information, http://www.reedbusiness.com
  • In-Stat, "Console and Handheld Online Gaming: Overshadowing the PC" report, http://www.instat.com/catalog/Ccatalogue.asp?id=212

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