Asia generates half of the World wide online game revenues, Europe representing

In 2007, the global online games revenues — estimated between 3.5 to 4.5 Euro billion — are made 90% by PC games. 50% of revenues are generated in Asia, while North America accounts for about 30% and Europe 20%. This results from InfoCom’s report FTTX — EXPERIENCES AND STRATEGIES — Filling the pipe of the NGN, which contains an entire chapter dedicated to games applications.

South Korea represents indeed a large gaming community with around 17 mn of 48 mn total inhabitants playing regularly online games. Most of the online games are free to play, but require purchases to

get to more advanced stages according to a so-called “free-to-play backed-by-item-sale” model. Online gaming providers generate revenues mainly by micro-transactions, i.e. sale of “items” like avatar customisation.

As of Japan, opinion poll among online gamers in 2006 revealed that the most popular equipment for game access was the PC (35%), followed by the mobile phone (~14%), the game console (~9%) and portable gaming device/PSP (~7%). An opinion poll showed that people are overall unwilling to pay for games. The most popular games were table/card games, role-playing games and puzzles. The study illustrated the different models based on free games, games with monthly subscriptions, as well as charges for additional items during the game. NTT’s strategy so far has been to push gaming along its FTTx-based Internet access, with a cut-rate starter package to connect Wii consoles.

Despite Asian tiger nations playing a major role in developing gaming business models to fill their FTTx pipes, interesting developments are to be observed in Europe too. Altibox in Norway, for instance, is a partnership model for communities and power utilities owning a fibre optic network. Altibox does not only implement basic telephony or internet services for owners of infrastructure, but also offers access to leading Norvegian game platforms. GameConnect, in Sweden, a gaming platform offered to city carriers and ISPs, which pay for connecting their platform/network physically to the GameConnect server. And this way ISPs can give their own users access to the GameConnect services. In Italy, Fastweb’s gaming offers are part of an “interactive channels” offer within the TV services with Milestone as a sometimes exclusive partner.

About InfoCom. InfoCom is a market research and consultancy company with more than 20 years experience providing strategic analyses and planning assistance to stakeholders in the telecommunications, IT and multimedia industries. InfoCom’s independent and fact-based analyses highlight trends and opportunities, supporting decision makers to understand market dynamics in order to improve their competitive advantage.