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Nearly Half of U.S. Video Game System Owners Plan to Buy A New Console or Handheld Game Device This Holiday Season

Report from Jupiter Media Metrix indicates total online games revenue will increase seven fold to 2.6 billion dollars by 2006 (December 17, 2001)
Jupiter Media Metrix, a global leader in Internet and new technology analysis and measurement, today reports that 45 percent of U.S. consumers who own a video game system intend to purchase a new game console or handheld game device this holiday season. In a new report released today, Jupiter analysts forecast that although the number of households owning a gaming console connected to the Internet will increase to 12.3 million by 2006 (up from 700,000 households in 2000), online PC games will continue to account for the lion's share of gaming subscription revenue. Jupiter projects that subscription revenues from online PC games will total 1.5 billion dollars by 2006, while subscription revenues from connected console gaming will only reach 250 million dollars in the same period.

"Stakes for the connected console video games market are growing rapidly, but don't signal a goldmine quite yet," said Billy Pidgeon, Jupiter analyst. "While revenues from software for offline consoles remain two to three times higher than offline PC games revenues, subscriptions for online PC games will continue to exceed subscriptions for online console games in the immediate term. By the end of 2001, when consoles from all three games system manufacturers are in play, Jupiter forecasts that there will be over 100 million console gamers in the U.S. Even though the new generation of consoles will not deliver the true breakthrough for online functionality, they represent a significant step forward in revenue potential. Publishers and media outlets must prepare for innovative digital marketing possibilities and new revenue opportunities that will stem from broadband connected consoles with hard drives."

In a separate announcement today, Jupiter Media Metrix reported that 46.7 million wired computer users at home in the U.S. played a PC-based game application in October 2001, up 10 percent from 42.4 million users in January 2001. The announcement features the latest Media Metrix data on PC game application usage and the top stand-alone PC game applications.

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Related Keywords:upiter Media Metrix, game consoles, game handhelds


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