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IDC: Online Game Consoles to Top 37M in 2008

22 Oct, 2007 By: Erik Gruenwedel

The popularity of online video game console editions, including Microsoft Xbox 360, Sony PlayStation 3 and Nintendo Wii, is expected to surpass 37 million units in 2008, according to a new research report.

The research presented recently by IDC and IDG Entertainment at the Entertainment for All Expo in Los Angeles, said online video gaming, including subscription services such as Xbox Live, represented the fastest growing segment of the market.

Online console revenue this year will triple to $583 million, from $133 million in 2006.

While video game software sales from traditional retail and online are expected to increase 19.5% in 2007, downloadable content revenue will increase more than 1,000%, with subscription sales growing 158%.

Game-related downloadable content derived from manufacturers' proprietary online console networks will reach $296 million in 2007, with subscriptions topping $277 million, from $107 million last year.

The report concluded that traditional video game software sales still dominate with $9.5 billion this year, content sold and accessed over the Internet represent the most “exciting” growth in the industry.

“Consumers are increasingly purchasing games by non-traditional means such as downloads or subscriptions,” said Billy Pidgeon, program manager for games research with IDC.

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