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 Questions 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