Added Dec. 15, 1999
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Online game-playing could be worth almost $5 billion within four years in the United States and Europe as a growing number of Web surfers come out to play, according to a Datamonitor report released this week in London.
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Rising Internet penetration will be the main driver in the growth, while special gaming consoles such as the recently launched Sega Dreamcast will contribute to expansion in the industry, worth around $82 million in 1999.
"While this market used to be the domain of a handful of die-hard gamers, faster networking technologies and cheaper Internet usage will turn it into a mainstream form of online entertainment," said Frederic Diot, senior analyst at Datamonitor. The report said the market would split into hard-core gamers interested in modern video games and casual gamers looking for the light diversion of trivia and classic games, who would represent the largest part of the market.
According to a recent Jupiter Communications report, the revenues relating to online games are forecast to exceed $1 billion in 2002, up from $41 million in 1997, while the online gaming audience is expected to reach 26.8 million by 2002, up from 2.0 million in 1997.
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