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Online Gaming Hits Record High

American`s have been crazy over virtual games since the development of Atari in the late 1970`s. With new technology sprouting up on a monthly basis it is not surprising that so many are still so involved in playing games. Whether it is via the PC, console, mobile phone or even through digital cable, American`s love the gaming experience. Revenues from U.S. online gaming services will increase from $1.1 billion in 2005 to more than $3.5 billion in 2009, according to Networked Gaming: Driving the Future, a new report from Parks Associates. Networked gaming services, including online console gaming, massively multiplayer online gaming (MMOG), multiplayer Internet gaming, and mobile multiplayer gaming, will account for almost 50% of online gaming revenues in 2009, followed by digital downloads at 23%. The report also concludes that games-on-demand services will complement digital distribution and, in addition, game publishers and service providers could generate significant derivative revenue from in-game advertising and secondary market exchange.

"The two primary drivers for online gaming are networked services and digital distribution," said Yuanzhe Cai, director of broadband and gaming for Parks Associates. He also states that over the next four years, the gaming industry will no longer depend strictly on retail sales but will see more balanced and diversified business models. The gaming industry is definitely learning valuable lessons from the video industry, syndicated game networks such as Game Tap can extend a game?s release window and in-game advertising can lead to innovative business models such as free MMOG. Furthermore, Parks Associates believe more game publishers and service providers will find ways to monetize the in-game economy, instead of fighting against it.

Networked gaming is a relatively new development that is driving the future. It covers the technology solutions enabling such network gaming services and examines the market impact and revenue opportunities for game developers, hardware manufacturers, and broadband service providers. Parks Associates is a market research and consulting firm focused on all product and service segments that are ?digital? or provide connectivity within the home. The company`s expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.