The Future of Pro Gaming

Mobile Market Potential
"As a platform, the cellphone has the biggest potential, because everybody owns one," said Kazumi Kitaue, chief executive at another game maker, Konami Digital Entertainment. A family with three children might buy just one Wii or PlayStation to share, but those children will probably have cellphones of their own and download and play games, Mr. Kitaue said.
For game makers like Konami, the iPhone could be an attractive platform because it is cheap and easy to develop games for, with potentially large returns. Developing games for sophisticated machines like PlayStation 3 and XBox, on the other hand, is time-consuming and expensive. Read More
According to FADE’s most recent report for the month ending July, 2009, we found the following key points:
- The iPhone gaming market controls $250 million USD in revenue since its launch in July of 2008, making it larger than any console’s digital game service (XBLA, PSN, WiiWare/VC)
- Of the 65,000 available applications, roughly 11,000 are games
- Although the 99 cent price point has been well reported on by the gaming media, many games above the price point have done very well
- The iPhone market is very top heavy (see chart #2) – FADE reports that between 10 and 15% of iPhone gaming titles take up 90% of revenue, making it critical for developers to take note of how the iPhone market works. Read More
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Global Impact Growing
The Chinese game market is exploding. Q2 turnover this year was 40% up on Q2 last year. Total turnover there could be as high as $4 billion this year. So it is a substantial and well established market. The government are repressive of games from abroad because they fear cultural pollution. At the same time they actively encourage the export of Chinese games so as to spread their own culture. Double standards.
SHANGHAI, Oct 13 (Reuters) - Revenue from China's online game market grew 39.5 percent in the second quarter from the previous year to 6.18 billion yuan ($906 million), according to data from research firm Analysys International on Tuesday.
Tencent Holdings (0700.HK), which runs China's largest online messaging platform and operates popular free-to-play games domestically, emerged as the market leader with 20.2 percent of the market and 1.24 billion yuan in revenues.
Shanda Games (GAME.O), a unit of Shanda Interactive Entertainment (SNDA.O), had 20 percent of the market with 1.23 billion yuan in revenues. NetEase.com (NTES.O), whose tie-up with Activision Blizzard (ATVI.O) to operate the blockbuster game World of Warcraft in China has hit speedbumps with regulators, was in third place with 12.7 percent of the market and revenues of 780 million yuan.
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The Global Video Gaming Market Is Expected To Grow At A CAGR Of 8.9% Over The Period 2008 To 2013
The Video Gaming Market Outlook: Evolving business models, key players, new challenges and the future outlook.
The global video gaming market is expected to grow at a CAGR of 8.9% over the period 2008-2013 to reach $76.1bn in 2013. In the future the market will be driven primarily by online and mobile gaming formats, which in turn are being driven by increasing internet, broadband and mobile penetrations. Video games publishers are changing their business models and adopting alternative distribution channels to enhance their profits and curb the malpractice of piracy. The industry value chain is evolving in the wake of new business and distribution models.
Key findings
The global video gaming market is expected to grow at a CAGR of 8.9% over the period 2008-2013.
Online gaming and mobile gaming are likely to be the key drivers of the growth in the global video gaming market. While console gaming will continue to be the largest segment, its market share is expected to decline.
Key video gaming markets include the US, Canada, Western Europe, China, Japan and South Korea, while India, Brazil, Russia and South East Asia comprise the key emerging markets for video games.
Piracy and IP protection are the key challenges for the video gaming industry at present and in the future.
The demographic profile of video gamers is changing and there is a strong growth in the number of casual gamers, which primarily consist of women and older men. Read More
The Future Spectator Sports
The Korean government has announced plans to create a purpose-built esports stadium by the end of 2011.
Korea has been one of the driving forces behind esports for years now, but The Korea Herald is reporting that the government there wishes to build an esports stadium by 2011.
In a brief post on the newspaper's website, the stadium plans were announced amidst other ideas about funding state-run dance teams for youths. Combined with the esports stadium, this is likely to cost the Korean government around $2.8billion USD. From the article:
""The increase of the budget shows the government's will to provide a better cultural life to the people," Vice Culture Minister Kim Dae-ki said. "We will focus mainly on balancing out the quality of cultural life among different economic classes."" Read More
Pro Gaming Sells

NEW YORK, NY, September 21, 2009 – For the second consecutive year, Samsung Electronics will add another facet to its extensive sponsorship of the world's largest international video gaming competition. World Cyber Games (WCG), Inc., the organizer of the international video game competition World Cyber Games recognized by the Guinness World Records, today announced that Samsung Electronics, the world's leader in mobile technology, will co-host the Samsung Mobile Challenge (SMC). NEW YORK, NY, September 21, 2009 – For the second consecutive year, Samsung Electronics will add another facet to its extensive sponsorship of the world's largest international video gaming competition. World Cyber Games (WCG), Inc., the organizer of the international video game competition World Cyber Games recognized by the Guinness World Records, today announced that Samsung Electronics, the world's leader in mobile technology, will co-host the Samsung Mobile Challenge (SMC).
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Sales & Genre Data
According to data compiled by the NPD Group, a global market research company, and released by the ESA in January 2009, computer and video game companies posted records sales in 2008. The industry sold 297.6 million units, leading to an astounding $11.7 billion in revenue. Of these sales:
- Game console software sales totaled $8.9 billion with 189.0 million units sold;
- Computer games sales were $701.4 million with 29.1 million units sold; and,
- There was a record $2.1 billion in portable software sales with 79.5 million units sold.
The most popular game genre once again was "Family Entertainment," which accounted for 19 percent of all games sold in 2008, up from 9.1 percent in 2006. In addition, of the games sold in 2008, 57 percent were rated "Everyone (E)" or "Everyone 10+ (E10+)." The NPD Group's data also indicates that only 16 percent of games sold last year were rated "Mature (M)."
Future Global Sport
SEOUL, South Korea -- At age 24, Lim Yo-Hwan plays computer games all day, makes a six-figure income doing it and has thousands of adoring fans.

Computer games have become a spectator sport here, and Mr. Lim is a star. In a packed Seoul television studio recently, Mr. Lim stood combat-ready in a military-style white tunic with epaulettes, his spiky hairdo set off by shiny silver headphones. Tapping frantically at a keyboard, Mr. Lim built a virtual empire and launched a daring attack on enemy forces in an imaginary electronic galaxy -- and was defeated -- all within five minutes.
Broadcast on cable TV, his moves were also displayed on screen before 300 fans in the studio, who cheered, cried and smacked noisemakers to show support. "I never miss a match" of his, said Jung Eun-young, 28, who stood in line for 14 hours for her front-row seat.
As electronic games attract big-dollar deals with sports leagues, Hollywood and advertisers, more gamers are starting to face off in professional venues. The payoffs are particularly rich here in Korea, where there's enough commercial and cultural support for a community of pros to earn a living and maybe even get rich.
Three Korean cable TV channels broadcast matches 24 hours a day. Live matches take place every week here in Seoul, and are draw as many customers as movies. This gaming mecca is even drawing young men from all over the world, who are lured by prospects of fame and fortune.
Last year, Mr. Lim made about $300,000 from player fees and commercials.
Powerful Marketing
Bunchball CEO Peter Daboll says companies should use games to engage customers.

The importance of gaming has moved beyond the marketplace to become a mainstream social phenomenon. The game culture supersedes games, consoles and accessories. It now influences diverse fields from education, training and medical therapy to motivating consumer behavior. The point of gaming is interactivity. Static, single-dimensional communications are less effective, particularly in traditional media. These changes are both profound and irreversible. It is a one-way street, and many industries are struggling to catch up to the consumer shift that has already occurred.
This temporary decline in video game revenues might actually highlight an underlying shift toward alternatives to game consoles: Consumers are increasingly using Web-based games that cost less yet are equally engaging.
Take Pogo.com, Electronic Art's leading casual gaming site. Monthly unique visitors have steadily grown and now exceed 10.5 million. What is even more impressive is that visitors frequented the site an average of 66 times in a month, and Pogo's heaviest users visit almost nine times per day. Another surprise: Women age 35 and over are the biggest users. And Pogo is just one game site.
Gaming is pervasive, motivating and addictive across all demographics. But, it is not the game content that drives people to visit at least twice a day, every day. It is the unique game mechanics--the "meta game"--that drives people to continue to play. People like to play the games, but they like the challenges and competitive aspects of the games. Simple mechanics include earning a trophy or a badge to display in your profile, seeing trophies that you have not yet achieved, having challenges or seeing your name on a leaderboard. These simple mechanics have a profound impact on consumer behavior. Increasingly, the content is generated by the users themselves, and it is becoming secondary to the "earn, reward, gift, redeem" meta-game culture. Read More
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FIRST ONLINE GAMING AND TECHNOLOGY FRATERNITY REVOLUTIONIZES SOCIAL NETWORKING FOR SPORTS GAMERS AND PROVIDES FORMULA FOR GAME DEVELOPERS AND ADVERTISERS TO PROVIDE SCHOLARSHIPS TO DISADVANTAGED YOUTH. READ MORE
TECHNOLOGY AND GAMING FRATERNITY STARTS COLLEGE TOUR Click here for Tour Results
Fraternity Members making impact in the community.
Upcoming fund raiser for Delta Beta Lambda Fraternity Inc. READ MORE
Delta Beta Lambda Foundation receives 501 (c) (3) status from the Internal Revenue Service. READ MORE
DBLGAMING Corporation plans to launch in U.S. With Unique Franchise Model for Video Game Industry. READ MORE
GAMING FRATERNITY LAUNCHES BETA COMPETITION MODEL FOR PROFESSIONAL & CASUAL GAMER. READ MORE
Delta Beta Lambda Foundation Board Believes that the Universities Can Become a Leader in Establishing Nationwide Research and Core Components, to Effectively Address the 'Digital Divide' Issue, READMORE




