NPD Study Focuses on Online PC Games

According to a new report from the NPD Group, of the $1.4 billion that gamers spent on PC games in 2005, $344 million was spent on online gaming subscriptions for casual and massively multiplayer online games. The new report found that massively multiplayer online game subscriptions accounted for $292 million dollar with 1.4 million paid subscriptions in the U.S. Over 1 million Americans spent $52 million on casual gaming sites like Pogo.com and RealOne Arcade, which charge under $5 per month. Whether gamers were playing casual or MMO game, the report found that the largest demographic paying for online subscriptions was the 25 to 34 year old age range (30 percent for MMOs and 29 percent for casual games).

According to Anita Frazier, industry analyst, the NPD Group, "With the increase in high speed Internet access, not only are users purchasing their game online, they are also willingly paying additional recurring fees over and above the price of the game to subscribe to services that let them play with others online." The casual game space continues to show potential by broadening the PC game audience, giving companies the opportunity to drive revenue from non-traditional audiences. For example, the ratio of female to male online gaming subscribers varied greatly when comparing game-specific to casual gaming, with only 29 percent of females being game-specific subscribers versus 49 percent found to be casual game subscribers. Age is also an important factor, with 87 percent of casual game players being 25 or older, while 55 percent of game-specific subscribers are 34 or younger. This report also shows the growth of casual gaming sites and the willingness of casual gamers to pay money to play games while socializing with others. With big online entities like Yahoo!, AOL, MSN, King.com and Pogo.com battling it out in this space, it will only grow over the coming years. At E3 a few weeks ago, there were more MMO game on display than ever before. This fast-growing space has been equated in many ways to early TV. Bigger online game companies like Sony Online Entertainment are offering multiple games for one price much like a TV channel. NcSoft and other big publishers with multiple game are expected to follow suit. Of course, Blizzard, which has over 6 million gamers playing "World of Warcraft" worldwide, is doing fine with just one title. The new expansion pack that will further broaden this most popular MMO game universe earned numerous awards at E3. This study was conducted over 13 weeks during the fourth quarter of 2005. The report collected data from nearly 60,000 repondents ages 13 and above. The NPD Group used additional information to expand this research for the entire year.