The document discusses the shift of the video game industry towards online and social gaming. It notes that the video game industry is worth $45.6 billion while the online gaming industry is worth $9.4 billion, representing 17% of the market. As computers and smartphones get more powerful, more games are being played online through web browsers or downloaded apps. Social games on Facebook have also grown popular as a more casual and interactive experience compared to traditional video games. The online gaming industry faces challenges in retaining players and profiting from small microtransactions but companies are exploring solutions like improved payment systems.

1. November 7th – 13th 2009
A Giant Sucking Sound
Video Games Move Online
By:
Group 6
Hitendrasinh Zala
Ketan Changani
Ruchi Gattani
Shoaib Qureshi
Vishal Bhatnagar

2. 2
Contents
Introduction
Types of Online Games
Industry
Mobile & Social Gaming
Edge over Video Games
Problems of Online Gaming
Road Ahead

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Introduction
• Internet swallows another media business
• Music, software & videos are all increasingly obtained
online now free of charge
• Video games are next

4. 4
Types of Online Games
• MMRPOG – Massively Multiplayer Role Playing Games,
very popular in Asia
• Episodic Gaming – New add-ons can be downloaded for
a fee
• Casual Online Games – Web-based version of board &
card games

5. 5
Industry
Market ($55 Billion)
Online Games ($9.4 Billion) Video Games ($45.6 Billion)
17%
83%

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Industry
• Many PC‟s are powerful enough to run fast moving
graphics, so firms are offering online games either
through a client software or web browser
• Gameforge.com offers 15 online games & has more than
85 million registered users
• Otoy.com & OnLive.com are planning to let users
play console games without consoles by online
streaming

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Mobile & Social Gaming
• Smart-phones allow users to download new games or
play online via internet
• Social games are more about interaction than action &
are very popular on social networking sites like Facebook
• Zynga is the market leader in social games with 22
million registered users

8. 8
Edge over Video Games
• Developing new games costs a few hundred thousand
dollars, online distribution is far cheaper & spreads
“virally”
• Users can take advantages of improvements in games
rather than having to buy out new ones
• Publishers earn money by,
▫ Charging subscription fees
▫ Selling advertisements
▫ Offering virtual goods for interested gamers

9. 9
Problems of Online Gaming
• Online players often move to new games very quickly
• Collecting small sums from millions of users is expensive
• Mobile operators take a big cut when payments are made
using „premium‟ text messages

10. 10
Road Ahead
• Facebook, Apple are trying to develop a low-cost
payment system for gamers
• Music & newspaper industries are also hoping that the
customers be persuaded to pay small amounts for
services

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