Abstract
In 2007, the video game console market represented one of the most popular
segments in the consumer electronics industry. Nintendo launched the Wii to
frenzied consumer demand, and Sony completed the launch of its PlayStation 3.
Microsoft' s Xbox 360 now faces legitimate competition from both these
companies. The handheld gaming console market is also exhibiting growth. While
Microsoft does not offer a handheld console, both Nintendo and Sony enhanced
their handheld lineups this year.
In order to recoup the high costs associated with console manufacturing,
Microsoft, Sony, and Nintendo have turned to online gaming either to generate
additional revenue streams or to promote brand loyalty. Subscriber growth is
expected in both paid and free online services over the forecast period.
In-Stat' s latest gaming report contains forecasts for online game subscribers
annually through 2011 for online-capable game console and handheld consoles.
Forecasts for each console include an annual console installed base, the
number of subscribers (free or paid), subscription revenue, paid download
revenue, and online advertising revenue. This report does not forecast PC
online gaming or casual gaming. Analyses are provided for the online console
strategies of Microsoft, Nintendo, and Sony, as well as the online handheld
strategies of Nintendo and Sony. New to this year' s report are survey results
regarding US consumers' attitudes towards both video game console ownership
and online gaming.
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