North Americans spend over $10 billion each year on all forms of interactive entertainment.

It is estimated that over 120 million Americans play video or computer games.

Worldwide online game revenue for 2008 is projected to be $8.3 billion.

Massively multiplayer online games (MMOGs) account for approximately half of online gaming revenue.

Revenue from hit massively multiplayer online games (MMOGs) typically exceeds that of hit retail games. One contributing factor is that hit MMOGs often have a life cycle of seven to ten years or longer.

In 2009, North America is expected to pass Asia as the leading online game market.

In 2008, gamers worldwide are projected to spend $3.1 billion on game content that is distributed solely through the internet.

Digital distribution business models benefit greatly from dropping bandwidth costs and increases in broadband penetration. By 2011, it is projected that 269 million households will have a broadband connection.

The Asian market specializes in a “pay-to-play” business model where consumers pay small sums at a time, often as little as a few pennies, which adds up quickly due to high volume.

Many game genres have already had great success using virtual item sales as a primary business model. This model is also gaining popularity in massively-multiplayer online role-playing games.

Virtual item and currency sales provide an opportunity to move away from flat-rate pricing. Hardcore players can buy as much as they want, while more casual players are not scared away by high monthly fees.

With the popularity of internet stores such as iTunes, consumers are becoming more comfortable with purchasing digital content online.

The secondary market for virtual, in-game items is projected to be worth as much as $1 billion worldwide. Companies such as IGE specialize solely in acting as intermediaries for the sale of virtual, in-game items.

A famous paper by Edward Castronova found that a unit of currency in Norrath was worth more than the Yen or Lira, and that playing Everquest yielded more wealth per hour than the average wage of a Bulgarian worker.

Characters and virtual items can sell at prices exceeding $3,000 on the secondary market.

Project Entropia, the first massively multiplayer online game specializing in virtual item sales, recorded a gross national product for their world of $360 million.

The online game Second Life has recorded a weekly average of $500,000 in sales of in-game virtual items.

The largest number of simultaneous players within a single online server is around 25,000. Even more will be possible as server technology improves.

Source: DFC INTELLIGENCE