PDA

View Full Version : Online gaming exceeds $1 billion in sales


Nights
03-26-2004, 05:11 PM
The NPD Group reports increased sales of online-capable console games.

THE NPD GROUP REPORTS SIGNIFICANT GROWTH OF ONLINE-CAPABLE VIDEO GAME SALES FOR CONSOLES

2003 Sales of Online-Capable Console Games Exceed $1 Billion

PORT WASHINGTON, NY, March 24, 2004 - According to leading marketing information provider, The NPD Group, U.S. retail sales of online-capable console video games exceeded $1 billion in 2003, a 167 percent increase over 2002. The number of units sold in 2003 exceeded 23 million, a 182 percent increase over the previous year. Since the category's introduction in 2000, online-capable console video games have sold over 33 million units, bringing in over $1.5 billion.

Almost all of the growth in the online-capable console game category has occurred in the past two years. Sales of these games, which include titles for Sony Corp.'s Playstation 2, Microsoft Corp.'s X-Box and Nintendo Co. Ltd.'s GameCube, have seen the majority of sales in the shooter and sport games super genres, with sport games leading the charge. In 2002, sport games commanded 69 percent of the online-capable video games market, while the shooter genre captured 22 percent. In 2003, sport games claimed 51 percent of the market, while shooter games remained at 22 percent. However, other genres began forming the online-capable video games landscape in 2003 with racing games taking 15 percent and role playing games taking 4 percent.

With every new year comes renewed hope from developers working to bring their online worlds into the homes of console gamers. And though a lot of money goes into the development of online video games, most software developers are careful to offer both online and offline gameplay options with every title, which in turn gives the consumer the final word on how the game is to be played.

"It's important to note that the increase in sales for online-capable games does not mean that the masses are moving to online gameplay," said Richard Ow, senior industry analyst, The NPD Group. "In some cases, consumers aren't necessarily aware they're buying games with online capabilities, but whether they're aware or they aren't, the onus falls in the laps of the software developers to provide games with multiple playability features."

Most online-capable video games offer two methods of play: the player can choose to play the game offline; or, with the proper Internet connection and/or subscription service, the player can go online and play with hundreds or thousands of game players in real-time.

"The challenge to the console gaming industry can be more attributed to the expanding demographic," explains Ow. "According to The NPD Group's Consumer Panel, more than half of the console gamers are 17 years old and younger, which means these gamers, who do not have access to credit cards, must rely on their parents to fund their online gaming habits. This is one of the reasons why most development teams tread cautiously in the world of online gaming. However, by providing first-rate titles with rich graphics, compelling content and online as well as offline capabilities, gamers of all ages and income levels can take advantage of these games."

(so is on billion dollars not something nintendo could profit off of...lol)

Viper
03-26-2004, 05:15 PM
Two things.


Sports is 51% of the market, not a big draw on GC.


Ever stop to think that those games would have sold anyway?


That is game sales, not money from Xbox Live or online fees.

speed stick
03-26-2004, 05:25 PM
^Oh, thats only game sales. At first I thought thats how much was paid to play online. I got it now.

Nights
03-26-2004, 07:03 PM
Stil 500,000,000 in dollars is a lot

Sendok
03-26-2004, 07:06 PM
Stil 500,000,000 in dollars is a lot
yeah it is...but how many of those untis that are sold get used online. that what i want to know.

speed stick
03-26-2004, 07:26 PM
^I would say maybe.....1/4.

Viper
03-26-2004, 07:27 PM
Stil 500,000,000 in dollars is a lot
Not a penny of that is from the online portion of the systems though.

That is the sales of the games in the stores, games that still would have sold would even without online options. If I remember right, can't look it up now...thread gone, Sony had 5% consoles online so 5% of the total sales went toward online gaming.

This results in $25,000,000 in actual game sales (all based on Sony online users so this figure is somewhat inaccurate).

Of course that is shared with MS. We'll split it this way.

Sony - $15,000,000
MS - $10,000,000

Mind you that this is not profit but sales of the games. After publsihing, distribution, advertising, dealer profit you get a much smaller set of figures.

Sony - $150,000
MS - $100,000


Of course more money is made with some online fees too but those are shown here.

Now how much do you think it cost to set up a network to play these games? $100,000? $500,000? A few million maybe?

Now where is the profit? Both Sony and MS could be losing big money to these online systems but there aren't releasing any real numbers for probably that reason.

Nights
03-26-2004, 07:28 PM
Hmmm.. Your telling you people actually bought Phantasy Star Online or Final Fantasy XI without online play?

I doubt it.

Sendok
03-26-2004, 07:29 PM
Hmmm.. Your telling you people actually bought Phantasy Star Online or Final Fantasy XI without online play?

I doubt it.

I have PSO...not online...

I mean more like Madden/Top Spin/Project Gotham 2/Rainbow Six 3 etc...

Viper
03-26-2004, 07:32 PM
I have PSO and havent played it online.

Nights
03-26-2004, 07:57 PM
You guys are crazy... That game is 50 times better with online play. Then again I have the Xbox version for good reason.

Michael Bluth
03-26-2004, 08:39 PM
I bought a couple of my games with the sole purpose of playing them online.

Viper
03-26-2004, 08:42 PM
I bought a couple of my games with the sole purpose of playing them online.
How many online game do...all together since xbox launch, have you had?

Of those games, how many did you play commonly online?

Nights
03-27-2004, 12:30 AM
well for me 6

I still play Capcom VS Snk online

Notedog
03-27-2004, 12:57 AM
I would buy more if Nintendo would just make them.

Nights
03-27-2004, 12:59 AM
I play Mario Kart online. Does that count?

[[tavis]]
03-27-2004, 01:37 AM
ninja gaiden and Prince of Persia count tho they have uterrly NO online elements at all

Nights
03-27-2004, 02:06 AM
Well ad those as well. lol

I had many more online games for my Dreamcast!

Michael
03-27-2004, 02:40 AM
EA screwed screwed me with that damn sims online...I'd be damned if I ever go online again.

Michael Bluth
03-27-2004, 03:06 AM
How many online game do...all together since xbox launch, have you had?

Of those games, how many did you play commonly online?


- MechAssault
- Midnight Club II
- NBA 2K3
- NFL Fever 2003
- Unreal Championship
- MotoGP / Whacked Demos


When I had more time to actually play my consoles I'd play MechAssault, Unreal and MotoGP on a regular basis.

bobo_ess
03-27-2004, 04:54 AM
How many different companies make online capable games?

TheGreenElf
03-27-2004, 06:55 AM
Most of my friends that have online games for Xbox don't actually have Live...so they talk about how awesome things like downloadable levels are, how good wolfenstein is online, and all that crap, and I ask them if they ever play it online...then they are like "I dont need to"...

bobo_ess
03-27-2004, 06:18 PM
Lol. That's funny. That's how it is in my community. Got no highspeed internet. So the MicroSoft owners are stuck on the same boat with Sony and Nintendo.

Freeman_JI
03-29-2004, 04:12 AM
u forgot PC gamers