Abstract
Screen Digest has found that the market value for massively multiplayer online
games in the West hit $1bn for the first time in 2006. The North American
subscription market was worth $576m, while Europe was worth $299m.
While subscription services continue to dominate in the West, accounting for
87% of the market, virtual item sales and in-game advertising have also made
their mark during the year. The growing impact of these new business models is
symptomatic of the increasing influence of traditional MMOGs on other online
platforms and games sectors, such as social networking sites and casual online
games. Both of these sectors are now broadly adopting many MMOG-like
strategies and characteristics.
Author of the report Piers Harding-Rolls says "During the past few years the
Western landscape for massively multiplayer online games has become
increasingly fragmented following the introduction of new genres of games
including social networking, virtual pet rearing and virtual world building
titles. These new games and platforms have brought with them many new gamers
and also new business models that are generating revenue that is largely
incremental to the incumbent subscription business."
Screen Digest forecasts that by 2011 over 10 million subscription accounts
will generate $1.5bn in consumer spending on this growing sector of the online
games market. Over the forecast period Europe will enjoy the strongest growth
between the two Western regions.
This highlights a key trend identified through the research namely that
there is stronger potential for subscription growth in Europe than in the more
established North American market due to less market saturation and stronger
broadband growth.
Key findings:
- Market value for MMOGs in the West hit $1bn for the first time in 2006.
Market growth has been helped by the introduction of more casual MMOG
experiences and new business models.
- The North American subscription market was worth $576m, while Europe was
worth $299m.
- By 2011 the MMOG subscription market will be worth over $1.5bn and Europe
will enjoy the stronger growth between the two Western regions
- Over the five year period, Germany will remain the largest subscription
market in Europe, followed by the UK.
- France will see the most significant value growth of over 16% CAGR over
the term, whilst Spain and Italy will both experience subscription value CAGR
of more than 15%.
- World of Warcraft is by far the most popular subscription game, accounting
for 54% of the subscription market in 2006, generating revenue of $471m. Its
next nearest competitor was Runescape from UK developer/publisher Jagex.
In the report:
- Western World MMOG market size and forecasts to 2011
- Subscription market size and forecasts to 2011 for North America and
Europe and key country territories
- 2006 market size for MMOG virtual item purchase and in-game advertising
markets
- Individual subscription title performance
- Publisher ranking by subscription revenue and market share
- MMOG addressable markets
- MMOG gamer demographics
- MMOG market value chain analysis
- MMOG content trends analysis
- MMOG service business model analysis
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