SOURCE: eMarketer

November 16, 2006 09:00 ET

The Clear Winner in Video Console War: Digital Delivery

eMarketer Report Predicts Downloads Will Earn 22% of Video Game Revenues by 2010

NEW YORK, NY -- (MARKET WIRE) -- November 16, 2006 -- Digital downloads of games and other entertainment, once considered a threat to the video console market, could turn out to benefit to the three video game console makers, Sony, Microsoft and Nintendo. By 2010, eMarketer estimates digital downloads will generate 22% of video game revenues worldwide, up from 8% in 2005.

"Far from stealing revenue from retail outlets, digital downloads may help the gaming industry break through the plateau it has seen for the last several years," says James Belcher, eMarketer senior analyst and author the new report, "Video Games Update: Digital Downloads Only Clear Winner in Console Market."

While analysts' estimates vary widely on which of the three competitors will make the most traction as the competition heats up this holiday season, eMarketer points out that online gaming services, downloadable movies and other amusements are now selling points for each console maker.

About eMarketer

eMarketer is "The First Place to Look" for market research information related to the Internet, e-business, online marketing and emerging technologies. eMarketer aggregates and analyzes e-business research from over 2,000 sources, and brings it together in analyst reports, daily research articles and the "eStat Database" -- the most comprehensive database of e-business and online marketing statistics in the world. Visit eMarketer for more information.

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