Analyst: Casual gaming ready to explode
Pacific Crest Securities' Evan Wilson says the US online casual market will nearly double in the next two years; publishers have misplaced focus on hardcore segment.
Casual gaming has arrived in the US, and is set to double its domestic revenues in just two years, according to a new industry overview from Pacific Crest Securities analyst Evan Wilson. In a 34-page recap of the casual gaming industry released today, Wilson estimates that the US casual business will hit $725 million in 2008, up from a 2006 total of $375 million.
"We expect casual games to be the primary industry growth driver for 2008 and beyond," Wilson wrote, "as well as the best source of [mergers and acquisitions] and [initial public offering] activity and all-around favorite buzzword."
Wilson said the developing field of casual games is pushing the industry forward, helping the business overcome a number of different factors holding it back.
"Gamers are frustrated about slow innovation and the prevalence of sequels in the traditional console game industry, while nongamers are increasingly excluded by the increasing difficulty of games," Wilson notes.
In addition to fostering new business models like digital distribution, ad-supported gaming, and pay-per-item microtransactions, casual games have lower development costs and leave room for experimentation with new gameplay mechanics. They are also proving increasingly adept at building persistent online communities. In tandem, these factors help the business by reducing the cost of entry for consumers, expanding the audience, increasing the "shelf life" of a game, and lessening the effects of piracy.
Wilson singled out Korea as a hotbed of innovation when it comes to the expanding casual market. In particular, he applauded the Koreans for pioneering the pay-per-item model, as well as successfully taking console games and turning them into online experiences. Electronic Arts' FIFA Online is one such success.
"We expect more former console games to see success online in Asia, and expect that they will be monetized through the item-based revenue model," Wilson said. "Eventually we expect that US publishers will explore the same model stateside as part of the overall push to distribute games online and to a broader audience. We expect to see US publishers increase their focus on casual games considerably in the near term, partially due to the success of Korean-based players on US soil."
199 Comments
-
lsny
-
Alex4
-
ChangelingJane
-
Olly464
-
TPSISO9000
-
carrierj1
-
somejobro
-
Foolz3h
-
Jermwarfare
-
carrierj1
-
--ProtoMan--
-
YukoAsho
-
Jermwarfare
-
--ProtoMan--
-
carrierj1
-
RahnAetas
-
1vgfan
-
dhalsim311
-
megamega777
-
Jermwarfare
-
EazyD91
-
carrierj1
-
carrierj1
-
RikuDude
-
KnightsofRound
-
Kar3
-
The-Longshot
-
AnubanUT
-
Jermwarfare
-
--ProtoMan--
-
Jermwarfare
-
Jermwarfare
-
--ProtoMan--
-
Jermwarfare
-
AnubanUT
-
EcksBocks360
-
EcksBocks360
-
AnubanUT
-
Unholyone123
-
LuNcHbOx313
-
Jermwarfare
-
sigma8
-
somejobro
-
sigma8
-
comthitnuong
-
pixelsword
-
SmoothCrimen
-
Get_Shorty
-
helium_flash
Subscribe to GameSpot's YouTube Channel
Hot Stories
Newsmakers
-
Mortal Kombat developer to diversify in 2012
NetherRealm creative director Ed Boon says there's an "assumption" another Mortal Kombat game to come, but wants to work on new IPs on multiple formats, genres. Full Story
- Posted Jan 30, 2012 8:17 am PT
- 59 Comments
Featured Stories
-
Star Wars: The Old Republic denounced for gay relationships
Family Research Council says BioWare has "gone to the dark side" with promise to include same-gender romance in MMO game. Full Story
- Posted Jan 30, 2012 10:46 am PT
- 509 Comments
-
No new Xbox in 2012 - Microsoft
Company's French marketing manager says Microsoft not ready to roll out new console this year, won't compete with Nintendo and the Wii U. Full Story
- Posted Jan 30, 2012 9:51 am PT
- 358 Comments
-
Kingdoms of Amalur: Reckoning online pass unlocks seven quests
New copies of 38 Studios' fantasy RPG come bundled with code to download House of Valor faction questline; studio says it was "always intended" to be DLC. Full Story
- Posted Jan 27, 2012 2:53 pm PT
- 345 Comments
-
Sony sweetens PS Vita 3G deal
$300 version of new handheld will now include free 8GB memory stick, PSN game, AT&T 3G data plan access; $350 First Edition preorders to receive just the PSN game and data plan. Full Story
- Posted Jan 27, 2012 2:24 pm PT
- 244 Comments
-
Nintendo considering new name for Wii U - Report
Underwhelming reaction and concerns of customer confusion supposedly have the Mario maker weighing its options for a rebranding before this year's E3. Full Story
- Posted Jan 27, 2012 11:12 am PT
- 511 Comments




