Gaming in the Cloud

Online Gaming for PCs, Video Game Consoles, and Connected Devices

Research Report

The overall online game market is expected to eclipse $14.5 billion in 2010 and grow to just over $29 billion by 2015, a 14.8% CAGR. Of this revenue, casual gaming is expected to account for nearly $7 billion of the 2010 revenue and over the course of the five year forecast window it is forecast to grow at a 16.8% CAGR to eclipse $15 billion. The MMO market is expected to be larger in 2010 at $7.6 billion, but will show a lower CAGR of 12.8%, reaching almost $14 billion by 2015. The casual market is expected to grow faster due to the wider audience appeal, but the Asia-Pacific region in particular will help drive the MMO market.

With the continued strong growth of connected devices the revenue potential for online gaming beyond the computer is likewise promising, although a number issues surrounding this market could create hurdles. Despite a strong CAGR, online gaming over connected devices is still expected to represent less than 10% of the overall online game market. If the market addresses many of its issues, then growth could accelerate.

This study examines the casual and Massively Multiplayer Online (MMO) games markets and the potential role for connected consumer electronics. In this report revenue forecasts are provided by region (North America, Asia Pacific, Europe, Latin America, and Middle East Africa) for the online game markets - both computer-centric and connected devices. In addition the research analyzes some of the technical issues involved with the transition from computers to connected consumer electronics.

Table of Contents

  • Executive Brief: Top-Line Forecast
  • Executive Brief: Drivers
  • Executive Brief: Inhibitors
  • Executive Brief: Market Share
  • Executive Brief: Summary and Strategic Recommendations
  • 1. Executive Summary
    • 1.1. Gaming Overview
  • 2. Market Issues
    • 2.1. Business Models
      • 2.1.1. MMOs and Casual Gaming
      • 2.1.2. Game Consoles
    • 2.2. Regions/Countries
      • 2.2.1. Broadband and Home Network Penetration
      • 2.2.2. Asia-Pacific
        • 2.2.2.1. China
        • 2.2.2.2. South Korea
        • 2.2.2.3. Japan
      • 2.2.3. North America and Europe
    • 2.3. Connected Devices
      • 2.3.1. Snapshot: Connected Home
  • 3. Technology Issues
    • 3.1. The Hardware and Software
      • 3.1.1. Cloud Gaming
        • 3.1.1.1. OnLive
        • 3.1.1.2. Gaikai
        • 3.1.1.3. Potential of Cloud Gaming in Connected Devices
      • 3.1.2. Local Processing
        • 3.1.2.1. Internap
        • 3.1.2.2. Addressing Some of the Potential Pitfalls of Local Processing
          • 3.1.2.2.1. TransGaming and Intel
      • 3.1.3. Serving the Game - LAN
      • 3.1.4. Adobe, Google TV, Net TV, Yahoo Widgets, Apple TV, Others?
  • 4. Market Forecasts
    • 4.1. Online Game Forecasts (Casual and MMO)
    • 4.2. Revenue Potential for Gaming on Connected Devices
  • 5. Company Directory
  • 6. Acronyms

Tables

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  1. Online Game Console Subscription Fees, Select Countries/Regions: 2010
  2. Fixed Broadband Subscribers, World Market, Forecast: 2010 to 2015
  3. Home Networks, World Market, Forecast: 2010 to 2015
  4. Fixed Broadband Subscribers, China, Forecast: 2010 to 2015
  5. Fixed Broadband Subscribers, Japan, Forecast: 2010 to 2015
  6. Fixed Broadband Subscribers, South Korea, Forecast: 2010 to 2015
  7. Fixed Broadband Subscribers, United States and Canada, Forecast: 2010 to 2015
  8. Devices Connected to the Home Network, US Market, 2008 Survey (n=513) and 2010 Survey (n=640)
  9. Casual Online Games Revenue, World Market, Forecast: 2010 to 2015
  10. Percentage of Home Networked Households with at Least One Connectable Device (Not Necessarily Connected), World Market, Forecast: 2010 to 2015
  11. Total Available Market (Home Networked Households with at Least One Connectable Device), World Market, Forecast: 2010 to 2015
  12. Connected Devices Revenue, Casual Games, World Market, Forecast: 2010 to 2015
  13. Connected Devices Revenue, MMO Games, World Market, Forecast: 2010 to 2015
  14. Casual Online Games Revenue, Select Asia-Pacific Countries, Forecast: 2010 to 2015
  15. Casual Online Games Revenue, United States and Canada, Forecast: 2010 to 2015
  16. MMO Games Revenue , World Market, Forecast: 2010 to 2015
  17. MMO Games Revenue , Select Asia-Pacific Countries, Forecast: 2010 to 2015
  18. MMO Games Revenue , United States and Canada, Forecast: 2010 to 2015
  19. Total Online Game Revenue, World Market, Forecast: 2010 to 2015
  20. Total Online Game Revenue, Select Asia-Pacific Countries, Forecast: 2010 to 2015
  21. Total Online Game Revenue, United States and Canada, Forecast: 2010 to 2015

Charts

  1. Fixed Broadband Subscribers
  2. Home Networks
  3. Fixed Broadband Subscribers
  4. Fixed Broadband Subscribers
  5. Fixed Broadband Subscribers
  6. Fixed Broadband Subscribers
  7. Devices Connected to the Home Network
  8. Casual Online Games Revenue
  9. Casual Online Games Revenue
  10. Casual Online Games Revenue
  11. MMO Games Revenue
  12. MMO Games Revenue
  13. MMO Games Revenue
  14. Total Online Game Revenue
  15. Total Online Game Revenue
  16. Total Online Game Revenue
  17. Percentage of Home Networked Households with at Least One Connectable Device (Not Necessarily Connected)
  18. Total Available Market (Home Networked Households with at Least One Connectable Device)
  19. Connected Devices Revenue, Casual Games
  20. Connected Devices Revenue, MMO Games
  21. Total Online Game Revenue World Market, Forecast: 2010 to 2015
  22. Online Game Revenue, Market Share Select Asia-Pacific Countries: 2010