Console Sales Could Drop, But Online Gaming Up9 Apr, 2009 By: John Latchem
Market research firm In-Stat is predicting video game console sales will flatten as a result of the recession, but online gaming subscriptions should grow 20.4% by 2013.
With an installed console base and growing consumer awareness of online gaming, In-Stat projects Microsoft, Sony and Nintendo to generate hundreds of millions of dollars in annual online gaming revenue from online service subscriptions, download revenue and/or online advertising. Microsoft’s Xbox Live service should lead the way, with projected revenue exceeding $1 billion annually by 2013.
Worldwide broadband subscriptions will reach 562 million in 2009, further driving online gaming.
Console sales reached 88 million units worldwide, up 7% from 2007. But In-Stat analysts predict console sales declines moving into 2010, a result of both the weak economy and a peak in each vendor’s video game console lifecycle.