Tuesday, March 07, 2006

Next Gen's article "Online Games Boom: Who Benefits"

Next-Gen has a great article by David Cole of DFC Intelligence (the industry's data geeks). The first three pages is nothing new, basically, online games will grow... blah blah. Skip to page 4, when David starts asking some good rhetorical questions.

In a feat of sheer stupidity, I will field these rhetorical questions... with no net. Here goes:

"When put into perspective, the online game market clearly is just getting started. Many questions remain unanswered. Chief among those questions is who will be the prime beneficiaries of market growth?"

Consumers will be the prime beneficiary due to an increase in choice, quality and pure entertainment. Suppliers will benefit because there will be additional demographic targets to cater to and more content consumption overall.

"Is it worth it for traditional publishers to risk their much larger retail business for risky forays into emerging markets? "

Is it worth it? Probably. Will they succeed? Probably not. They just don't possess the flexibility or the stomach for risk to enter the space (other than rehashing their current strategy and labeling it "online"). I like the Hollywood analogy. Even major movie studios must spin off separate companies to create independent movies (granted, the name implies independent but I'm pointing out that major studios couldn't go indy even if they tried).

"Can upstart online game companies like NCsoft continue to grow to challenge the more traditional publishers?"

Yes as will companies like Acclaim. =)

"Will traditional publishers see their markets shrink as consumers start to pay less attention to expensive retail offerings or will online games allow for new business opportunities that grow overall revenues and profits to record heights?"


1 comment:

Anonymous said...

Online games have been expanding like nothing on the Internet.
Many new online gaming sites have come up.
Even I'm a big sucker of online games. They are susually easy on systems, have a light theme and can be interesting without getting addictive.

Some of the latest that I came across are from Zapak.com.. Zapak is promising to give away free cash to the people who play one of the 30 cash games. (Not cash prizes for winning the game, but to anyone who plays the game) . Just loved the way they have structured the games in this category.

Here is the link