SOURCE: Pike & Fischer

Pike & Fischer

January 28, 2010 16:18 ET

U.S. Online Game Subscribers to More Than Double in Five Years, Pike & Fischer Projects

SILVER SPRING, MD--(Marketwire - January 28, 2010) - Americans who play online games like "World of Warcraft" and "EverQuest" generated $2.8 billion in subscription revenue in 2009, and stand to pay an annual $5 billion in game subscriptions by 2015, market research provider Pike & Fischer projects in a new report.

The number of online gaming paid subscribers, which totaled approximately 19.4 million at the end of last year, will more than double to 44.5 million by the end of 2014, P&F senior analyst Tim Deal forecasts. The increase in usage will result from the rise in digital distribution of online games as opposed to retail boxed sales, along with an increase in broadband adoption, Deal says.

"Established franchises such as 'World of Warcraft,' 'EverQuest,' and 'Dungeons and Dragons Online' continue to create new game content in order to retain existing subscribers, while introducing new generations of gamers to their platforms," Deal says. "The amount of online play is escalating rapidly."

Although the number of online game subscribers will increase, average monthly online game subscription fees will drop from approximately $12 in 2009 to about $9.50 in 2014. This decrease will be fueled by increased competition, increased subscription volume, and better cost efficiencies -- including an increase in digital distribution vs. retail packaged products, Deal says.

P&F says the increasing complexity of online gaming environments will heighten demand on broadband networks, giving Internet service providers an opportunity to boost revenues by adding higher-speed tiers for intense gamers.

The report, "Broadband-enabled Gaming: A Budding Revenue Opportunity for Service Providers," is priced at $599 and is available for purchase at For analyst commentary or to request a briefing, contact Tim Deal at 603-652-8136 /

For information about Pike & Fischer's Broadband Advisory Services, visit or contact Jonathan Wentworth Ping at 973-718-4703 /

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