DFC Intelligence  

The Themis Report on Online Gaming 2004

January 14, 2004

As  part of our Online Games research package DFC Intelligence is distributing The Themis Report on Online Gaming 2004.  Themis Group, Inc. is an international provider of marketing, management, client generation and customer support services to developers and publishers of online PC and console games, websites, and other community driven services within the interactive entertainment industry.  Founded in 2001, the company has executive offices in Stamford, CT, and Research Triangle Park, NC. Today, the Themis Group boasts a team of industry veterans whose cumulative experience with online games exceeds 50 years.

This month we thought we would look at some of the key highlights from the new Themis Group report.  For information on  the DFC Intelligence Online Game industry research service, as well as other research packages, click here.  For a detailed table of contents for The Themis Report on Online Gaming 2004, click here.  The new DFC Intelligence online game research package includes the brand new 2004 Themis report, as well as both the 2003 DFC Intelligence Online Game report (click here for TOC) and the 2004 DFC Intelligence Online Game report (scheduled for June 2004 delivery).

Fast Facts from The Themis Report on Online Gaming 2004

Asia-Pacific Market for Online Games: The market for online games in the Asia-Pacific region was $640m in 2003, and will grow to $720m in 2004. Government support of broadband and the PC bang phenomenon both contributed to the runaway growth of online gaming in Korea, which is now being replicated in hyper-growth markets Taiwan and China. But success in Asia-Pacific requires specific attention to cultural factors and popularity in the US/European marketplace does not correlate.

Sports Wars: The two main consoles for online gaming, Playstation 2 and Xbox, are entering a struggle to control the online sports gaming segment. Both Sony and Microsoft are launching sports portal with universal logins, as are third-party providers EA and Sega. The short-term business model for all four offerings is free online play, while in the next console cycle, Themis predicts that season-based fees, subscriptions, and paid entry tournaments will dominate.

Reaching the Casual Gamer: Game companies are striving to reach the mass market through a combination of third-generation “casual” massively multiplayer games (MMGs); and mass-appealing licenses such as Matrix, Lord of the Rings, and WarCraft. Succeeding with casual MMGs requires finding the right balance between socialization and gameplay, while success with a license challenges developers to find a way to implement the license’s core appeal into an MMG-style game – a challenge which Final Fantasy Online met, but Star Wars Galaxies did not.

Monetizing the MMG: Premium services and virtual goods represent major new revenue streams for massively-multiplayer game operators. Offerings such as combination accounts, power leveling, and character transfers could potentially increase revenue for MMGs by as much as 25% of subscription fees, or $100m annually.

Fast Forward 2014: In a blue-sky analysis conducted via Delphi survey, Themis Group predicts that by 2014, there will be 15 million online gamers in the U.S. paying an average subscription fee of $23.50 per month. Fantasy RPGs, online sports games, and casual “second life” games will capture the majority of consumer dollars. Virtual property will emerge as a major driver for gamers and game companies. The market as a whole will be sized at $9 billion.

Industry Leaders, December 2003:

(In descending order by total gross revenue generated from online games, including subscriptions, advertising and sponsorships)

  1. NCSoft
  2. Sony Online Entertainment
  3. Electronic Arts
  4. Mythic Entertainment
  5. Microsoft Corporation

As part of our ongoing research efforts DFC Intelligence is delivering free monthly briefs on hot topics in the interactive entertainment and video game industry.  You (or a colleague of yours) have signed up to receive these briefs.

DFC Intelligence’s research services provide detailed strategic analysis of the interactive entertainment industry. 

A sample of recent reports on the video game and PC game market include::

Worldwide Market Forecasts for the Video Game and Interactive Entertainment Industry Released April 2003, this 500+ page report contains complete forecasts for all individual console and portable game platforms by region (Asia, Europe/PAL, U.S.) through 2007.  Also included are PC game forecasts and historical sales figures.  The report has several scenarios for future market growth including an analysis and forecasts for new systems from Sony, Microsoft and Nintendo, as well as new portable game systems.

Market Leaders in the Video Game and Interactive Entertainment Industry This 600+ page report profiles major companies in the interactive entertainment industry. Each individual company report is about 15-40 pages and has an historical background, financial overview, product analysis and a frank assessment of the outlook for that company. 

The Online Game Market This 475 page report contains a comprehensive analysis of the online gaming market.  Includes current sales trends, market forecast, and in-depth company profiles.

Other DFC reports include The Business of Video and Computer Games, The State of Game Technology, The Video Game and PC Game Consumer and The Executive Interview Series.

 

Order Desk



DFC Intelligence Copyright ©2007 All Rights Reserved; DFC Intelligence.  No part of this electronic document can be redistributed, sold, or copied.  Intended for individual use only.
Permission is given to use this DFC Intelligence logo to link to www.dfcint.com, provided the graphic is not altered in any way.