Online Gaming: More Than a Trend

In my previous post, I contested that online gaming has hit the mainstream and done so in a big way. During my freshman year in college in 2000, broadband Internet access was a luxury typically afforded only to those in more urban areas and university dorms. The increased access in broadband connections, however, has allowed game developers and publishers to offer sophisticated gaming experiences that match or surpass offline alternatives. This post will identify some of the trends that Frances Cairncross believes associate themselves with the gaming industry.

1. The Death of Distance: This is the most obvious trend in online gaming, mostly because it is the defining characteristic of the industry and what has created a highly lucrative marketplace. According to a September 2007 press release from Strategy Analytics, online gaming is a $4 billion industry with the potential to constitute 1/3 of all game revenues by 2011. A TeamXbox post tells us that Bungie, the creators of popular console series Halo, sold $300 million in copies of Halo 3 worldwide during the first week after release. 2.7 million of the (at the time) 7 million Xbox Live members worldwide played the game online during the release week, resulting in what was truly a global phenomenon. To this day, one can visit the Bungie Online website and be greeted with a worldwide map of users currently playing the game online.
2. More Minnows, More Giants: While big name publishers such as EA, Activision and Blizzard still rake in millions in gaming revenue, barriers to entry have been lifted for independent publishers. A Macworld post references the top 10 paid App Downloads in Apples iTunes store for 2008, including game publishers like Acceleroto, Freeverse and Pangea. These virtual unknowns have found a place in the market alongside the behemoths that have dominated in years past.
3. A New Trust: Gamers, whether casual or hardcore, are amongst the toughest customers to please. If an online gaming experience is laggy or devoid of customization, they will not hesitate to abandon a game and sometimes even an entire development house. With the constant sharing of information on the Internet (via Electronic Publishing), it sometimes only takes a spark to ignite a revolt.
4. The Proliferation of Ideas: Gamers are also a creative bunch and, when given the opportunity, can create entire worlds with the tools they are given by game publishers. Halo 3 is also a great example as an "enabler of ideas". Generally thought of as a simple First Person Shooting franchise, Halo 3 offered "The Forge", a feature that allowed users to modify maps online as they saw fit. This resulted in some of the most entertaining creativity console gamers have seen. Using weapons only, two gamers were even able to play a modified game of Home Run Derby as seen in this video.
5. A Market for Citizens: Using both online and offline games, dedicated gamers have been able to create entirely new markets in selling customized game content. In the game Second Life, there is a currency called "Linden Dollars" that is directly bought in US currency. Popular website GAMEWAR enables the buying and selling of online characters that gamers have built over time. This actually enables them to monetize what before was a considered a pointless hobby for children.

There is no doubt that the online gaming world has the potential to grow even further in the future. With the popularity of casual consoles like Nintendo's Wii and DS systems, both with online capabilities, we may find that the more common question in the future will not be "Do you play?" but rather "Why not?".

Citations

Strategy Analytics. (September 10, 2007) Games Industry Transformed As One-Third of Games Software Revenues will be Generated Online by 2011. Retrieved January 31, 2009 from: http://www.strategyanalytics.com/default.aspx?mod=PressReleaseViewer&a0=3569

TeamXbox.com. (October 4, 2007) Halo 3 Does $300 Million First-Week Sales. Retrieved January 31, 2009 from: http://news.teamxbox.com/xbox/14720/Halo-3-Does-300-Million-FirstWeek-Sales/

Macworld. (December 2, 2008) Apple reveals top iTunes App Store downloads for 2008. Retrieved February 2, 2009 from: http://www.macworld.co.uk/ipod-itunes/news/index.cfm?RSS&NewsID=23765

YouTube. (September 23, 2007) Halo 3 Baseball. Retrieved February 3, 2009 from: http://www.youtube.com/watch?v=qu7pkXNJ1qw