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By 2011 One-Third of Games Revenues Will Be Generated Online

by Rainier on Sept. 11, 2007 @ 3:37 p.m. PDT

Research by Strategy Analytics reveals that the rapidly expanding MMO market is blazing the way for electronic sell-through and digital distribution of both PC and console games, and will by 2011 account for 30% of the games industry's revenue, which is expected to triple in the next 5 years.

In terms of revenue, the online games category is currently the largest category out of the three main online entertainment markets (music, games and video). Strategy Analytics estimates that the global online games market generated $3.8 billion in 2006 and projects that the market will grow with a compound annual growth rate (CAGR) of 25.2% in the 2007–2011 forecast period to reach $US 11.8 billion and represent approximately one third of the total games software market by 2011.

“The rapid growth of the addressable market for digital distribution of both PC and Console games will help clear the way for distribution of mainstream hit titles which has up to now been restricted to the physical retail channel,” comments Martin Olausson, Director of Digital Media Research at Strategy Analytics.

“The main driver for sustained growth in the online games market will be the continued uptake of broadband services around the world”, adds David Mercer, Principal Analyst at Strategy Analytics. “Additionally, the very lucrative revenue opportunity in both the massively multiplayer segment and the electronic sell through market will continue to attract new entrants into the online games market.”

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