Console and Handheld Online Gaming
Online Community, Content, and Commerce Gaming Strategies for Sony, Nintendo and Microsoft
The video game market has entered a new generation, with all three next-generation consoles shipping with online gaming services enabling both digital distribution and online gameplay. While the last generation of game consoles made significant steps forward with regard to online gameplay, the new generation comes out of the box to interact with new online gaming services for gameplay, community and digital content distribution.
The most evolved of the new services today is Microsoft’s Xbox Live service. Microsoft’s focus for differentiation revolves in large part around its online gaming capabilities, with advanced community, commerce and content download capabilities. However, both Nintendo and Sony are rapidly developing their console-based gaming services to allow for distribution of classic gaming titles, game add-on content, and access to the full Internet –something that Microsoft has not yet allowed Xbox Live subscribers to do.
This study examines conditions in the online gaming markets for consoles and handhelds, looking at the current strategies of the three major platform providers as well as the ecosystem for digital distribution. It evaluates the casual and full game download market for consoles, as well as microtransactions, subscription services (for core service as well as services such as MMOs), content downloads (including movies and TV), and other important aspects of the console and handheld online gaming market.
 What Does This Report Answer?
- How will digital distribution of both casual and full-game titles evolve over the life of the new generation of consoles?
- Will Microsoft continue to lead with its Xbox Live service over the course of the next generation?
- Will Sony’s new gaming service evolve to include movie and video downloads?
- From a sales and business perspective, how will micropayments for in-game virtual assets fare for each console?
- Will advertising for online console gaming become a significant market over the next five years?
Who Needs This Report?
- Gaming platform vendors
- Game publishers
- Broadband service providers
- Content providers
- Investment and financial analysts
 
Section 1.
Executive Summary
- 1.1 Elements of Online Gaming for Consoles
- 1.1.1 Connectivity
- 1.1.2 Multiplayer Gaming
- 1.1.3 Demos and Trials
- 1.1.4 Digital Distribution/Commerce
- 1.1.5 Community and Communication
- 1.1.6 System Updates
- 1.1.7 Web Access
- 1.1.8 Entertainment (Non-Game) Distribution
- 1.2 Consumer Online Gaming: What Do They Say?
Section 2.
Microsoft Online Gaming
- 2.1 Xbox Live Overview
- 2.1.1 Regional Availability
- 2.1.2 Connection Rate
- 2.1.3 Will Gold Go Free?
- 2.2 Core Gaming Components
- 2.2.1 The Gamertag
- 2.3 Xbox-Live Accessories
- 2.3.1 Xbox Live Marketplace
- 2.3.2 Xbox Live Arcade
- 2.3.3 Video Marketplace
- 2.3.4 Live Anywhere
- 2.4 SWOT Analysis of Xbox Live
- 2.4.1 Strengths
- 2.4.1.1 Maturity of Service
- 2.4.1.2 Video Marketplace
- 2.4.1.3 Library Size
- 2.4.2 Weaknesses
- 2.4.2.1 Payment for Online Gameplay
- 2.4.2.2 Small Cap of Arcade Game Size
- 2.4.2.3 Reliance on Classic Arcade Titles
- 2.4.2.4 Lack of Hard Drive on Core Systems
- 2.4.3 Opportunities for Xbox Live
- 2.4.3.1 Grow Original Content and Offer more Advance Titles in Arcade
- 2.4.3.2 Continue to Develop Video Marketplace
- 2.4.3.3 Remove the Annual Fee for Subscription for Gold Tier
- 2.4.4 Threats to Xbox Live
- 2.4.4.1 Sony’s Large Third-Party Network to Create Original Games for Digital Distribution
- 2.4.4.2 Sony’s Own MMO Titles and Experience in Running MMOs
- 2.5 Microsoft Online Gaming Forecast
Section 3.
Sony Online Gaming
- 3.1 Connectivity and Memory on the PS3
- 3.2 Components of PlayStation Network (PSN)
- 3.2.1 Communication/Community
- 3.2.2 Online Commerce and Digital Distribution
- 3.2.2.1 PlayStation Store
- 3.2.2.1.1 Wallet/Currency System
- 3.2.2.1.2 Downloadable Games
- 3.3 Sony SWOT
- 3.3.1 Strengths of Sony Online Gaming
- 3.3.1.1 Large Hard Drive and SD Storage Capabilities
- 3.3.1.2 PSP to PS3
- 3.3.1.3 MMO-Sony Online Entertainment Pedigree
- 3.3.1.40 MB Game Downloads
- 3.3.1.5 Focus on Original IP
- 3.3.1.6 Internet Browser
- 3.3.2 Weaknesses
- 3.3.2.1 Lack of Games for Download
- 3.3.2.2 PlayStation Store Slow and Cumbersome
- 3.3.2.3 PS3 High Price Tag
- 3.3.3 Opportunities
- 3.3.3.1 More Game Demos and Purchasable Games
- 3.3.3.2 Make Sony PS2 and PS1 Games Available for Purchase
- 3.3.3.3 Movies and Music (for PS3 and PSP)
- 3.3.3.4 MMO Gaming
- 3.3.4 Threats
- 3.3.4.1 Xbox Live Continues Online Lead and Translates into Console Purchase Decisions
- 3.3.4.2 Xbox Live Anywhere
- 3.3.4.3 Wii’s Online Store and Large Game Library
- 3.4 Sony PSP
- 3.4.1 Networking and Online Gaming
- 3.4.2 Digital Distribution for PSP
- 3.5 Sony Online Gaming Forecast
Section 4.
Nintendo Online
- 4.1 Nintendo Wii: Nintendo Finally Enters the Online Console Gaming Market
- 4.2 Wii Connectivity and Storage
- 4.3 Wii Online Components
- 4.3.1 Wii Channels
- 4.3.2 Wii Points
- 4.3.3 WiiConnect24
- 4.3.4 Wii Browser/Internet Channel
- 4.3.5 Virtual Console
- 4.4 SWOT Analysis of Nintendo Wii Online Service
- 4.4.1 Strengths
- 4.4.1.1 Simple and Free Connections for All Wii Users
- 4.4.1.2 Large Library of Back Titles Available for Virtual Console
- 4.4.1.3 Ability to Leverage Dominant DS Handheld
- 4.4.2 Weaknesses
- 4.4.2.1 Current Lack of Online Gameplay
- 4.4.2.2 No Hard Drive to Store Content
- 4.4.2.3 Lack of Online Console Experience
- 4.4.2.4 Lack of Original Titles for Virtual Console
- 4.4.3 Opportunities
- 4.4.3.1 Growing Virtual Console Titles
- 4.4.3.2 Adding Original Titles for Virtual Console
- 4.4.3.3 Fully Exploit Wii-DS Connections
- 4.4.3.4 Making Game Demos Available
- 4.4.3.5 Online Gameplay
- 4.4.4 Threats
- 4.4.4.1 Simple Hardware Could Lose Novelty Factor
- 4.4.4.2 Motion Sensing Remotes Created by Microsoft or Sony
- 4.4.4.3 Lack of Non-Gaming Content
- 4.5 Nintendo DS
- 4.5.1 Networking and Online Gameplay
- 4.5.2 DS Download Stations
- 4.6 Nintendo Online Gaming Forecast
Section 5.
Forecast
- 5.1 Forecast Methodology
- 5.2 Console Online Subscriber Forecasts
- 5.2.1 Portable Forecast
- 5.2.1.1 Online Portable Gaming Subscribers
- 5.2.1.1.1 What about Microsoft?
- 5.2.1.2 Online Portable Gaming Revenues
Section 6.
Company List
Section 7.
Acronyms
Scope of Study
Sources and Methodology
Notes
Tables and Charts
- Survey: Do You Play Online Games?
- Survey: Online Gaming Behavior by Game Platform
- Survey: Reasons for Not Playing Online Console Gaming
- Xbox Live Online Revenue by Type
- Total Xbox Live Online Gamers by Console (Xbox, Xbox 360, Xbox 2010)
- Sony Online Gaming Revenue by Type
- Total Sony Online Subscribers by Console (PS3, PS4)
- Sony Portable Online Subscribers by Console
- Nintendo Online Console Gaming Revenue by Type
- Total Nintendo Online Console Subscribers by Console
- Nintendo Portable Online Subscribers by Portable
- Online Gaming Console Gamers by Console
- Online Console Gaming Revenue by Type
- Online Gaming Console Subscription Fees by Console Vendor
- Console Dowloadable Full-Game Game Revenue by Console Vendor
- Online Gaming Console Micropayments by Console Vendor
- Console Casual Game Download Revenues by Console Vendor
- Console Advertising Revenue by Console Vendor
- Console Video Download Revenue by Console Vendor
- Online Gaming Console Gamers by Console
- Portable Online Gaming Revenue by Type
- Xbox Live Marketplace Screen Shot
- PlayStation Store
- Survey: Do You Play Online Games? US Survey
- Survey: Online Gaming Behavior by Game Platform, US Survey
- Survey: Reasons for Not Playing Online Console Gaming, US Survey
- Xbox Live Online Revenue by Type, World Market: 2003 to 2011
- Total Xbox Live Online Gamers by Console (Xbox, Xbox 360, Xbox 2010), World Market: 2003 to 2011
- Sony Online Gaming Revenue by Type, World Market: 2003 to 2011
- Total Sony Online Gamers by Console (PS3, PS4), World Market: 2003 to 2011
- Total Sony Portable Online Gamers by Portable, World Market: 2003 to 2011
- Nintendo Online Console Gaming Revenue by Type, World Market: 2003 to 2011
- Total Nintendo Online Console Gamers by Console (Wii, Nintendo New Console: 2011), World Market: 2003 to 2011
- Total Nintendo Portable Online Gamers by Portable, World Market: 2003 to 2011
- Online Gaming Console Gamers by Console, World Market: 2003 to 2011
- Online Gaming Revenue for Consoles by Type, World Market: 2003 to 2011
- Online Gaming Console Subscription Revenue by Console Vendor, World Market: 2003 to 2011
- Console Downloadable Full-Game Game Revenue by Console Vendor, World Market: 2003 to 2011
- Console Micropayments Revenue by Console Vendor, World Market: 2003 to 2011
- Console Casual Game Download Revenue by Console Vendor, World Market: 2003 to 2011
- Console Advertising Forecast by Console Vendor, World Market: 2003 to 2011
- Console Online Non-Game Content Forecast (Music and Video) by Console Vendor, World Market: 2003 to 2011
- vOnline Gamers by Portable, World Market: 2003 to 2011
- Portable Online Gaming Revenue by Type, World Market: 2003 to 2011
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Number of Pages:
| 59 |
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Number of Tables, Charts and Figures:
| 25 |
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Deliverable Formats:
|   |
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Price:
| Login |
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Release Date:
| 1Q 2007 |
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