For game consoles, an $8 billion Net target
Internet-connected game consoles will generate $8 billion in revenue for the Big Three companies through online content and services in 2013, according to a report released Thursday by research firm Parks Associates.
Clearly, console games aren't going away in the next five years. And if $8 billion in revenue can be generated just through services, then they are unlikely to go away for a much longer period of time.
I wrote previously that a more-likely scenario than the death of the console is one in which the console can play games of all types, including those that are browser-based or require a download installation.
In another post on video game "megatrends," I noted that Internet connectivity is key to extending the commercial lifespan of games and also provides monetization methods beyond sale of the actual games. "The ability to download new content or play against others online extends the lifespan and the potential audiences," I wrote.
Free-to-play games have already created junior economies in Asia. Frank Yu recently wrote on GameSetWatch that "winning--or gaining power--in online games in China is as much about purchasing items as it is about skill or hard work." He adds:
If designers and developers had other business alternatives to monetize their games, they would if they could. For now, they design the games to painlessly help users spend ever larger sums of money on virtual items. I'm sure Western publishers are looking at and exploring this model as well.
Console developers would be well served to figure out more monetization methods in order to avoid falling prey to PC and browser-based games. Their ability to remain profitable depends on their ability to adapt to the different ways people choose to consume and play games.
Dave Rosenberg dishes up "Software, Interrupted" with nearly 15 years of technology and marketing experience that spans from Bell Labs to multiple start-up IPOs to open-source enterprise software companies. He is co-founder of MuleSource and currently serves as the general manager of Hardy Way. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can contact Dave via e-mail at softwareinterrupted@gmail.com or follow him on Twitter @daveofdoom. 
