The Online Game Market 2004 Table of Contents

DFC Intelligence DFC Intelligence Phone 858-780-9680 9320 Carmel Mountain Rd Fax 858-780-9671 Suite C www.dfcint.com San Diego, CA 92129 The Online Game Market 2004 Table of Contents August 2004

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About This Report The Online Game Market 2004 is based on a review of historical trends and opinions of leading members of the video game industry, including analysts, consultants, developers, publishers, retailers and consumers. This report has been prepared by utilizing a variety of primary and secondary research techniques including: telephone and personal interviews; analysis of market surveys, trade journals and company literature; extensive database searches; and DFC Intelligence s original compilations and analysis. A DFC Intelligence report is more than a collection of raw statistics. We carefully scrutinize and analyze data from a variety of sources. The result is a comprehensive overview that puts facts and figures in context. Anyone who has attempted to collect figures for the online game industry knows that is difficult to obtain accurate statistics. We have studied market surveys, investment analyst reports and other sources of industry information. Our statistics and forecasts are based on the careful analysis of the available research, a great deal of which is contradictory. In many cases, we made assumptions based on the best available information. We feel our figures accurately reflect past and future market conditions. At the very least, these numbers track the industry trends and accurately estimate the market share of the various players. This report is divided into ten parts. Part I is the Executive Summary. Part II provides an overview of the history of online games and a brief snapshot of the current state of the market. Part III includes forecasts for the online game market through 2009. These forecasts are broken down into two different scenarios. Part IV looks at the type of companies that will be involved in the online game industry, from developers to distributors. Part V is a discussion of industry business models. Part VI looks at operating costs and technology considerations. Part VII looks at the hardware for playing games, with a primary focus on console online games. Part VIII is a detailed look at online game genres. Part IX is an overview of the online game consumer and Part X are profiles of some of the leading online game services and companies, as well as profiles of the unique characteristics of some of the leading world markets including South Korea, Taiwan, Chin, Japan and Europe. Author: Company Profiles: Analysis of MMOG Games: Themis Group Research, Writing and Editorial Assistance: David Cole George Chronis, David Cole David Cole, Haley Fritz, Patrick Smith, The Stacey Duncan, Haley Fritz, Paul Gregory, Jessica Mulligan, Tristan Shook, Jonathan Ward, Paul Nguyen, Patrick Smith, The Themis Group

Table of Contents I. EXECUTIVE SUMMARY... 16 A. OVERVIEW... 16 B. MAJOR TRENDS... 19 1. Online Console Games... 20 2. Worldwide Market and Online Games in Asia... 22 3. Casual Gaming Market... 23 4. Online Gaming Consolidation... 24 5. Bundling Becomes Key... 25 6. Impact of Broadband... 26 7. Emergence of Online-Only Games... 27 8. Glut of Product/Need for Capital/Learning by Failure... 28 9. Changing Distribution Channels... 29 10. Trend to Flat-Rate Pricing... 30 11. Online Games as an Extension of Retail Games... 30 12. Emergence of Dedicated Servers and Networks for Enhanced Online Gaming... 31 C. CHALLENGES TO ONLINE GAMING INDUSTRY... 31 1. Technology Impediments... 32 2. Game Design Paradigms... 33 3. Consumer Awareness... 34 4. Uncertainty in Profitable Business Model... 35 5. Level of Online Hardware Penetration... 36 6. Reaction from Traditional Retail Channel... 37 II. STATE OF ONLINE GAMES... 38 A. OVERVIEW... 38 B. HISTORY OF ONLINE GAMES... 48 1. History... 48 2. The Market Niches Today... 54 III. FORECAST FOR ONLINE GAMES... 56 A. OVERVIEW... 56 B. GENERAL ONLINE POPULATION... 59 C. BROADBAND VS NARROWBAND FORECASTS... 62 1. Broadband vs Narrowband Households by Country... 63 2. Broadband vs Narrowband Households by Region 2001-2009... 66 D. VIDEO GAME CONSOLE HARDWARE FORECAST... 76 E. FORECAST FOR ONLINE GAMER POPULATION... 84 1. N. America Online Gamer Forecasts 2001-2009... 86 2. Europe Online Gamer Forecasts 2001-2009... 89 3. Asia Online Gamer Forecasts 2001-2009... 92 4. Worldwide Online Gamer Forecasts 2001-2009... 95 F. FORECASTS FOR ONLINE GAME HOURS OF USAGE 2001-2009... 101 1. PC Online Games Hours of Usage 2001-2009... 102 North America PC Online Games Hours of Usage 2001-2009... 102 Europe PC Online Games Hours of Usage 2001-2009... 104 Asia PC Online Games Hours of Usage 2001-2009... 106 Worldwide PC Online Games Hours of Usage 2001-2009... 108

2. Console Online Game Hours of Usage 2001-2009... 110 North America Console Online Games Hours of Usage 2001-2009... 110 Europe Console Online Games Hours of Usage 2001-2009... 111 Asia Console Online Games Hours of Usage 2001-2009... 112 Worldwide Console Online Games Hours of Usage 2001-2009... 113 3. Total Online Gamer Hours 2001-2009... 115 North America Total Online Games Hours of Usage 2001-2009... 115 Europe Total Online Games Hours of Usage 2001-2009... 117 Asia Total Online Games Hours of Usage 2001-2009... 119 Worldwide Total Online Games Hours of Usage 2001-2009... 121 G. FORECASTS FOR ONLINE GAME REVENUE 2001-2009... 125 1. Online Game Consumer Expenditure Revenue 2001-2009 Scenario 1... 127 North America Online Game Expenditure: Scenario 1... 127 Europe Online Game Expenditure: Scenario 1... 131 Asia Online Game Expenditure: Scenario 1... 135 Worldwide Online Game Expenditure by Consumer Type: Scenario 1... 139 Worldwide Online Game Expenditure by Region: Scenario 1... 143 2. Online Game Consumer Expenditure Revenue 2001-2009 Scenario 2... 148 North America Online Game Expenditure: Scenario 2... 148 Europe Online Game Expenditure: Scenario 2... 152 Asia Online Game Expenditure: Scenario 2... 156 Worldwide Online Game Expenditure by Consumer Type: Scenario 2... 160 Worldwide Online Game Expenditure by Region: Scenario 2... 164 3. Online Game Advertising Revenue 2001-2009... 169 North America Online Game Advertising Revenue: 2001-2009... 169 Europe Online Game Advertising Revenue: 2001-2009... 172 Asia Online Game Advertising Revenue: 2001-2009... 175 Worldwide Online Game Advertising Revenue: 2001-2009... 178 4. Total Online Game Revenue Forecasts 2001-2009: Scenario 1... 185 North America Total Online Game Revenue 2001-2009: Scenario 1... 185 Europe Total Online Game Revenue 2001-2009: Scenario 1... 187 Asia Total Online Game Revenue 2001-2009: Scenario 1... 189 Worldwide Total Online Game Revenue 2001-2009: Scenario 1... 191 5. Total Online Game Revenue Forecasts 2001-2009: Scenario 2... 197 North America Total Online Game Revenue 2001-2009: Scenario 2... 197 Europe Total Online Game Revenue 2001-2009: Scenario 2... 199 Asia Total Online Game Revenue 2001-2009: Scenario 2... 201 Worldwide Total Online Game Revenue 2001-2009: Scenario 2... 203 IV. KEY PLAYERS IN THE ONLINE GAME VALUE CHAIN... 209 A. OVERVIEW... 209 B. VALUE CHAIN... 214 1. Service Providers/ISPs/Telecom/Cable Operators... 214 2. Content Providers... 215 3. Platform/Hardware Providers... 223 4. Online Game Providers/Aggregators... 224 5. Others...229 C. SALES CHANNELS AND ONLINE DISTRIBUTION... 230 1. Overview...230 2. Online Distribution and Shareware (ESD)... 234 The Early Days of Shareware... 235

Online Distribution Today... 236 The Challenges of Online Distribution... 237 RealNetworks/RealArcade... 241 Trymedia Systems... 243 3. Games On Demand... 244 Yahoo! Games On Demand... 245 Comcast Games on Demand... 245 Atari On Demand... 245 Exent Technologies... 246 Console Online Games On Demand... 247 (1) The Sega Channel... 247 (2) Infinium Labs Phantom Gaming Service... 249 4. Electronic Distribution at Retail... 251 V. ONLINE GAMING BUSINESS MODELS... 254 A. OVERVIEW... 254 1. Bundling is Key... 264 2. What models seem suitable to what types of content... 269 B. TRADITIONAL RETAIL SALES... 271 1. Using peer-to-peer and aggregator services... 271 2. Publishers setting up proprietary services... 273 C. ADVERTISING... 275 1. Overview...275 2. Advantages of Online Advertising... 276 3. What Will Allow Online Advertising to Grow... 284 4. Problems with Online Advertising... 285 5. Measurements... 286 6. Types of Online Advertising... 288 Banner Advertising... 289 Interstitials... 290 One-to-One...291 E-mail Advertising... 291 Coupons and Promotions... 292 Sponsorships/Corporate Games/Advergaming... 293 In-Game Advertising... 295 Rich Media...295 7. Consolidation... 297 8. Advertising in Online Games: The Reality... 298 9. Product Placement in Games... 304 D. FLAT-FEE SUBSCRIPTIONS... 307 1. Basic Monthly Subscription... 309 2. Tiered Subscriptions... 311 3. Buy at Retail/Monthly Flat-Fee Subscription Model... 314 Forecasts for Massively Multiplayer Persistent World Games... 314 (1) Current MMOG Revenue... 315 (2) MMOG Revenue Forecasts: North America, Europe, Japan... 318 Glut of MMOG Products = Major Shakeout?... 321 Retail Price Goes Down, Online Fees Go Up... 322 E. MINI-TRANSACTIONS/VIRTUAL PROPERTY/ PAY-PER-PLAY/PAY-PER-COMPONENT... 326 1. Digital Collectibles/Magic: The Gathering... 331 2. Virtual Property/ There Inc/ Second Life... 333

3. Digital Collectibles Market Players... 334 F. SKILL-BASED GAMING/ GAMES FOR MONEY/ COMPETITIVE GAMING... 335 G. EMERGING BUSINESS MODELS... 338 VI. TECHNOLOGY AND OPERATING CONSIDERATIONS... 342 A. OPERATING COSTS... 342 1. The cost of doing business... 342 2. Commodity and Hybrids... 345 3. Costs for Massively Multiplayer/Persistent World Games... 347 B. TECHNOLOGY CONSIDERATIONS... 351 1. Bandwidth: Broadband vs. Narrowband... 353 Overview... 353 Pipes: An Overview... 354 Narrowband: With us for the Near Future... 358 Broadband...359 What Type of Broadband?... 362 Bottom Line...363 2. Latency...365 Just what is Latency?... 365 Unpredictability and its Effects... 368 Will Latency get Worse?... 368 Will Latency Ever Go Away?... 372 Some Possible Solutions... 373 Minimizing Latency in Game Design... 375 3. Distribution Technology... 376 VII. CONSOLE ONLINE GAMES... 382 A. OVERVIEW... 382 B. CONSOLE AND TV-BASED ONLINE GAMING... 386 1. History...386 2. Console Gamers vs. PC Gamers... 388 3. Sega Dreamcast/Sega.net/SNAP... 394 4. Sony, Microsoft and Nintendo: A Detailed Look... 398 Microsoft Xbox...399 Sony PlayStation 2 (PS2)... 406 Nintendo GameCube... 410 5. New Business Models for Console Systems... 411 Infinium Labs Phantom... 411 C. WIRELESS GAMING... 413 VIII. ONLINE GAME GENRES... 415 A. OVERVIEW... 415 B. THE TRADITIONAL VIDEO GAME AND COMPUTER GAME GENRES... 416 C. THREE BROAD CATEGORIES OF ONLINE GAMES: COMMODITY GAMES, RETAIL HYBRIDS AND SUBSCRIPTION GAMES... 421 1. Simple Commodity Games... 422 2. Retail Hybrids... 424 3. Massively Multiplayer/Persistent Worlds... 426 4. Today s Game Types Define Tomorrow s Consumer Type... 427 D. ONLINE GAME GENRES: FROM MASS-MARKET TO HARD-CORE... 428 1. Traditional Board/Card and Parlor Games... 428

2. Puzzle Games... 430 3. Simple Action Games... 430 4. Post-Modern Parlor Games: Trivia/Game Shows... 433 5. Children s Entertainment... 436 Alfy.com... 437 Cartoon Network... 438 Disney... 440 FoxKids.com...441 FunBrain... 441 Headbone... 442 Kaboose... 443 MaMaMedia... 443 Nick.com... 444 PBSKids... 445 Sports Illustrated For Kids... 446 6. Traditional Action/Sports/Racing/Fighting... 447 Fantasy Sports Leagues... 448 7. First-Person Shooters... 450 Quake... 451 Unreal Tournament... 452 Aliens Online...454 Half-Life... 455 StarSiege Tribes...455 Soldier of Fortune...457 Army Training Simulations: from Medal of Honor to SOCOM and Call of Duty... 457 (1) Medal of Honor... 457 (2) America s Army... 458 (3) Battlefield 1942... 458 (4) Call of Duty... 459 8. Strategy Games... 459 9. Role-Playing Games (RPGs)... 460 10. Simulations... 463 11. Persistent Worlds... 463 12. Prize-Oriented Games... 464 E. THE ONLINE GAME PARADIGM... 465 F. CHAT AND COMMUNITY... 471 G. PERSISTENT WORLD MASSIVELY MULTIPLAYER GAMES: A DETAILED LOOK... 474 1. Ultima Online... 476 2. EverQuest... 480 3. Asheron s Call... 486 4. Dark Age of Camelot... 491 5. Other Noteworthy and Upcoming MMOGs/Persistent Worlds... 493 Anarchy Online...493 City of Heroes...495 Dragon Empires...496 Dungeons and Dragons Online... 496 Earth and Beyond... 497 Eve Online: The Second Genesis... 497 Final Fantasy XI...498 Guild Wars...499 JumpGate: The Reconstruction Initiative... 500

Legacy Online...500 Lineage... 501 The Matrix Online... 502 Middle-Earth Online... 503 Motor City Online... 503 Mythica... 504 Neocron... 504 Project: Entropia...504 PlanetSide... 505 Ragnarok Online...506 The Saga of Ryzom... 507 Second Life... 507 Shadowbane...508 Shattered Galaxy...508 The Sims Online...509 True Fantasy Live Online... 510 Ultimate Baseball Online... 511 World of WarCraft... 512 World War II Online... 513 IX. ONLINE GAME CONSUMER... 514 A. OVERVIEW... 514 B. CONSUMER PROFILES... 519 1. The Big Picture: Hard-Core vs. Mass-Market... 519 Sony Online Entertainment Demographics... 522 MSN Zone.com Demographics... 523 EA.com Demographics... 524 Number of Online Gamers... 525 2. Hard-Core Video Game Players... 527 3. Hard-Core PC Gamer Players... 527 4. Moderate Gamers... 528 5. Mass-Market/Casual Game Players... 528 6. Female Game Players... 529 7. Child Game Players... 529 X. COMPANY PROFILES AND INDIVIDUAL WORLDWIDE MARKETS... 531 A. COMPANY PROFILES: NORTH AMERICAN MARKET... 531 1. Arkadium...531 2. Blizzard/Battle.Net... 533 3. Electronic Arts/ EA.com/ America Online/Pogo... 539 Pogo.com... 549 4. The Flipside Network/ Uproar... 552 5. Funcom...558 6. Game Universe/eUniverse/Intermix Media... 560 Game Universe/SkillJam... 562 euniverse/intermix Media... 563 7. IGN Entertainment/GameSpy... 565 8. MSN Games by Zone.com... 572 9. Mythic Entertainment... 578 10. Neopets... 580 11. PopCap Games... 584

12. RealNetworks/ RealArcade... 586 13. ShockWave/GameBlast... 589 14. Sony s The Station... 592 15. WildTangent... 599 16. WorldWinner... 603 17. Yahoo!... 605 B. WORLDWIDE ONLINE GAME MARKETS... 608 1. The South Korean Game Market... 608 Actoz Soft... 613 CCR... 616 Gravity Corp...617 NCsoft... 619 NetMarble/Plenus... 628 Neowiz/Pmang... 630 NHN/Hangame... 632 NetMarble/Plenus... 634 Webzen... 636 2. Online Game Market in Taiwan... 639 Gamania Digital Entertainment... 641 3. Online Game Market in China... 643 NetEase... 646 Shanda Interactive Entertainment... 648 Sina... 651 Sohu... 653 4. Online Game Market in Japan... 654 5. Online Game Markets in the Rest of Asia... 657 6. Online Game Markets in Europe... 659

INDEX OF TABLES Table 1 Peak Concurrent Online Game Usage for Casual Game Sites... 54 Table 2 Peak Concurrent Online Game Usage for Top Massively Multiplayer Games... 54 Table 3 Peak Concurrent Online Game Usage for Match-Making Game Sites... 55 Table 4 Total Worldwide Online Households... 60 Table 5 Broadband Households by Country 2001-2003... 64 Table 6 Broadband Household Penetration by Country 2001-2003... 65 Table 7 North America Online Households: 2001-2009... 67 Table 8 Europe Online Households: 2001-2009... 69 Table 9 Asia Online Households: 2001-2009... 71 Table 10 Total Worldwide Online Households: 2001-2009... 73 Table 11 Total Worldwide Broadband Households: 2001-2009... 73 Table 12 Online Household Key Comparisons: 2003 and 2009... 75 Table 13 Worldwide Video Game Console Hardware Unit Sales: 2001-2009... 77 Table 14 U.S. Video Game Console Hardware Unit Sales: 2001-2009... 78 Table 15 Europe Video Game Console Hardware Unit Sales: 2001-2009... 79 Table 16 Japan Video Game Console Hardware Unit Sales: 2001-2009... 80 Table 17 Rest Of World Video Game Console Hardware Unit Sales: 2001-2009... 81 Table 18 Worldwide Active Installed Base of 128-Bit Game Systems 2001-2009... 82 Table 19 Worldwide Active Installed Base of New Game Systems 2001-2009... 83 Table 20 N. America PC Online Gamers: 2001-2009... 86 Table 21 N. America Console Online Gamers: 2001-2009... 87 Table 22 Total N. America Online Gamers: 2001-2009... 88 Table 23 Total Europe PC Online Gamers: 2001-2009... 89 Table 24 Total Europe Console Online Gamers: 2001-2009... 90 Table 25 Total Europe Online Gamers: 2001-2009... 91 Table 26 Total Asia PC Online Gamers: 2001-2009... 92 Table 27 Total Asia Console Online Gamers: 2001-2009... 93 Table 28 Total Asia Online Gamers: 2001-2009... 94 Table 29 Total Worldwide PC Online Gamers: 2001-2009... 95 Table 30 Total Worldwide Console Online Gamers: 2001-2009... 96 Table 31 Total Worldwide Online Gamers: 2001-2009... 97 Table 32 N. America PC Online Gamers Hours of Use: 2001-2009... 102 Table 33 Europe PC Online Gamers Hours of Use: 2001-2009... 104 Table 34 Asia PC Online Gamers Hours of Use: 2001-2009... 106 Table 35 Worldwide PC Online Gamers Hours of Use: 2001-2009... 108 Table 36 N. America Console Online Gamers Hours of Use: 2001-2009... 110 Table 37 Europe Console Online Gamers Hours of Use: 2001-2009... 111 Table 38 Asia Console Online Gamers Hours of Use: 2001-2009... 112 Table 39 Worldwide Console Online Gamers Hours of Use: 2001-2009... 113 Table 40 N. America Total Online Gamers Hours of Use: 2001-2009... 115 Table 41 N. America Total Online Gamers Hours of Use: 2001-2009... 116 Table 42 Europe Total Online Gamers Hours of Use: 2001-2009... 117 Table 43 Europe Total Online Gamers Hours of Use: 2001-2009... 118 Table 44 Asia Total Online Gamers Hours of Use: 2001-2009... 119 Table 45 Asia Total Online Gamers Hours of Use: 2001-2009... 120 Table 46 Total Worldwide Online Gamers Hours of Use: 2001-2009... 121 Table 47 Total Worldwide Online Gamers Hours of Use: 2001-2009... 122 Table 48 Worldwide PC and Console Online Games Hours of Usage 2001-2009... 123 Table 49 Scenario 1 North America PC Online Gamer Pay Revenue: 2001-2009... 127

Table 50 Scenario 1 North America Console Online Gamer Pay Revenue: 2001-2009... 128 Table 51 Scenario 1 North America Total Online Gamer Pay Revenue: 2001-2009... 129 Table 52 Scenario 1 Europe PC Online Gamer Pay Revenue: 2001-2009... 131 Table 53 Scenario 1 Europe Console Online Gamer Pay Revenue: 2001-2009... 132 Table 54 Scenario 1 Europe Total Online Gamer Pay Revenue: 2001-2009... 133 Table 55 Scenario 1 Asia PC Online Gamer Pay Revenue: 2001-2009... 135 Table 56 Scenario 1 Asia Console Online Gamer Pay Revenue: 2001-2009... 136 Table 57 Scenario 1 Asia Total Online Gamer Pay Revenue: 2001-2009... 137 Table 58 Scenario 1 Worldwide PC Online Gamer Pay Revenue by Consumer Type: 2001-2009139 Table 59 Scenario 1 Worldwide Console Online Gamer Pay Revenue by Consumer Type: 2001-2009... 140 Table 60 Scenario 1 Worldwide Total Online Gamer Pay Revenue by Consumer Type: 2001-2009... 141 Table 61 Scenario 1 Worldwide PC Online Gamer Pay Revenue by Region: 2001-2009... 143 Table 62 Scenario 1 Worldwide Console Online Gamer Pay Revenue by Region: 2001-2009... 144 Table 63 Scenario 1 Worldwide Total Online Game Pay Revenue by Region: 2001-2009... 145 Table 64 Scenario 2 North America PC Online Gamer Pay Revenue: 2001-2009... 148 Table 65 Scenario 2 North America Console Online Gamer Pay Revenue: 2001-2009... 149 Table 66 Scenario 2 North America Total Online Gamer Pay Revenue: 2001-2009... 150 Table 67 Scenario 2 Europe PC Online Gamer Pay Revenue: 2001-2009... 152 Table 68 Scenario 2 Europe Console Online Gamer Pay Revenue: 2001-2009... 153 Table 69 Scenario 2 Europe Total Online Gamer Pay Revenue: 2001-2009... 154 Table 70 Scenario 2 Asia PC Online Gamer Pay Revenue: 2001-2009... 156 Table 71 Scenario 2 Asia Console Online Gamer Pay Revenue: 2001-2009... 157 Table 72 Scenario 2 Asia Total Online Gamer Pay Revenue: 2001-2009... 158 Table 73 Scenario 2 Worldwide PC Online Gamer Pay Revenue by Consumer Type: 2001-2009160 Table 74 Scenario 2 Worldwide Console Online Gamer Pay Revenue by Consumer Type: 2001-2009... 161 Table 75 Scenario 2 Worldwide Total Online Gamer Pay Revenue by Consumer Type: 2001-2009... 162 Table 76 Scenario 2 Worldwide PC Online Gamer Pay Revenue by Region: 2001-2009... 164 Table 77 Scenario 2 Worldwide Console Online Gamer Pay Revenue by Region: 2001-2009... 165 Table 78 Scenario 2 Worldwide Total Online Game Pay Revenue by Region: 2001-2009... 166 Table 79 North America PC Online Gamer Ad Revenue: 2001-2009... 169 Table 80 North America Console Online Gamer Ad Revenue: 2001-2009... 170 Table 81 North America Total Online Gamer Ad Revenue: 2001-2009... 171 Table 82 Europe PC Online Gamer Ad Revenue: 2001-2009... 172 Table 83 Europe Console Online Gamer Ad Revenue: 2001-2009... 173 Table 84 Europe Total Online Gamer Ad Revenue: 2001-2009... 174 Table 85 Asia PC Online Gamer Ad Revenue: 2001-20089... 175 Table 86 Asia Console Online Gamer Ad Revenue: 2001-2009... 176 Table 87 Asia Total Online Gamer Ad Revenue: 2001-2009... 177 Table 88 Worldwide PC Online Gamer Ad Revenue: 2001-2009... 178 Table 89 Worldwide Console Online Gamer Ad Revenue: 2001-2009... 179 Table 90 Worldwide Total Online Gamer Ad Revenue: 2001-2009... 180 Table 91 Worldwide Total Online Gamer Ad Revenue by Platform: 2001-2009... 181 Table 92 Worldwide Total Online Gamer Ad Revenue by Region: 2001-2009... 182 Table 93 Scenario 1: North America Total Online Game Revenue 2001-2009... 185 Table 94 Scenario 1: Europe Total Online Game Revenue: 2001-2009... 187 Table 95 Scenario 1: Asia Total Online Game Revenue: 2001-2009... 189 Table 96 Scenario 1: Worldwide Total Online Game Revenue by Type: 2001-2009... 191

Table 97 Scenario 1: Worldwide Total Online Game Revenue by Region: 2001-2009... 193 Table 98 Scenario 1: Worldwide Total Online Game Revenue by Platform: 2001-2009... 195 Table 99 Scenario 2: North America Total Online Game Revenue 2001-2009... 197 Table 100 Scenario 2: Europe Total Online Game Revenue: 2001-2009... 199 Table 101 Scenario 2: Asia Total Online Game Revenue: 2001-2009... 201 Table 102 Scenario 2: Worldwide Total Online Game Revenue by Type: 2001-2009... 203 Table 103 Scenario 2: Worldwide Total Online Game Revenue by Region: 2001-2009... 205 Table 104 Scenario 2: Worldwide Total Online Game Revenue by Platform: 2001-2009... 207 Table 105 Different Types of Online Game Aggregators... 224 Table 106 Forecasts for Online Distribution of Game Software: 2002-2009... 234 Table 107 Infinium Labs Phantom Gaming Service Basic Revenue Model... 250 Table 108 Product/Service vs. Revenue Model... 269 Table 109 Pricing for Online Game Services Circa 1997... 272 Table 110 U.S. Advertising and Marketing Services 2000E... 278 Table 111 Magazine Advertising Revenue 2000... 279 Table 112 Game Magazine 1999 Advertising Revenue... 279 Table 113 Game Magazine 2000 Advertising Revenue... 280 Table 114 Game Magazine 2001 Advertising Revenue... 280 Table 115 Game Magazine 2002 Advertising Revenue... 280 Table 116 Online Advertising Revenue: 1996-2003... 281 Table 117 Share of Ad Impressions by Content Category: 2004... 283 Table 118 Share of Ad Impressions by Content Category: 2000-2002... 283 Table 119 CPM of Various Media... 287 Table 120 Advertising/Usage Share of Various Media... 287 Table 121 Online Advertising Formats 2002-2003... 288 Table 122 Advertising Formats 2000-2002... 289 Table 123 Revenue of Leading Online Advertising Sites: 2002-2003... 297 Table 124 Average Banner Rate Cards by Genre Q3/Q4 2002... 298 Table 125 House Ad Rates by Genre Q4 2002... 299 Table 126 Top Online Game Sites: July 2003... 303 Table 127 Examples of Online Game Subscription Services... 308 Table 128 Case s Ladder Tiered Subscription Options... 312 Table 129 North America, Europe, Japan Top MMOG Games Subscribers and Revenue... 315 Table 130 MMOG Annual Subscription and Revenue Forecast: North America, Europe and Japan 2002-2009... 318 Table 131 MMOG Annual Subscription and Revenue Forecast: Asia Pacific 2002-2009... 320 Table 132 Mini-Transactions/ Virtual Property Worldwide Revenue Forecast 2003-2009... 326 Table 133 Location-Based/Internet Café: Pay-Per-Play Business Model... 328 Table 134 Skill-Based Gaming Forecast 2003-2009... 337 Table 135 Persistent World Support Costs... 348 Table 136 Gross Profit for Subscription Online-Only Game: Moderate Support Costs... 349 Table 137 Gross Profit for Subscription Online-Only Game: Low Support Costs... 349 Table 138 Broadband Households by Country 2001-2003... 359 Table 139 Total Worldwide Broadband Households by Region: 2001-2009... 360 Table 140 Packet Demand... 369 Table 141 Nielsen s Law vs Moore s Law... 370 Table 142 Total Worldwide Online Console Gamers: 2001-2009... 388 Table 143 Total Worldwide Console Online Gamers by Type: 2001-2009... 389 Table 144 Total North America Console Online Gamers by Type: 2001-2009... 390 Table 145 Total Europe Console Online Gamers by Type: 2001-2009... 390 Table 146 Total Asia Console Online Gamers by Type: 2001-2009... 390

Table 147 Total Worldwide Online Console Game Revenue 2001-2009... 392 Table 148 Total Worldwide Online Console Game Revenue by Region 2001-2009... 393 Table 149 Worldwide Video Game Console Hardware Unit Sales: 2001-2009... 398 Table 150 Worldwide Active Installed Base of 128-Bit Game Systems 2001-2009... 398 Table 151 Worldwide Active Installed Base of New Game Systems 2001-2009... 398 Table 152 Xbox Live Most Played Games... 403 Table 153 PlayStation 2 Online Usage Statistics: 2002-2004... 407 Table 154 PlayStation 2 Online Capable System by Region... 407 Table 155 U.S. Sales of Console Games by Genre: 2003... 416 Table 156 Top U.S. Game Titles of 32/64-Bit Era... 417 Table 157 U.S. Best Selling Titles of 2002... 417 Table 158 U.S. Best Selling Titles of 2003... 418 Table 159 Interactive Entertainment: Baseline Consumer Penetration Statistics... 516 Table 160 Male and Female Users for Leading Online Game Sites... 521 Table 161 MSN Games at the Zone.com Demographics: 2004... 523 Table 162 MSN Games at the Zone.com Demographics: 2002... 523 Table 163 Pogo and Club Pogo Demographics: 2004... 524 Table 164 EA.com Demographics: 2002... 524 Table 165 Total Worldwide PC Online Gamers: 2001-2009... 525 Table 166 Total Worldwide Console Online Gamers: 2001-2009... 525 Table 167 Appeal of Game Genres to Different Consumer Types... 526 Table 168 EA.com Revenue and Income: 1997-2003... 540 Table 169 Ultima Online Revenue: 1998-1999... 541 Table 170 EA.com Revenue Sources: 2001-2003... 541 Table 171 Electronic Arts Online Revenue Sources: 2002-2004... 541 Table 172 Uproar Financial Info: 1997-2000... 557 Table 173 Uproar.com Costs and Expenses 1997-2000... 557 Table 174 euniverse Revenue and Income... 561 Table 175 RealNetworks Revenue and Income... 587 Table 176 RealNetworks Service Revenue by Category: 2001-2003... 587 Table 177 Yahoo! Revenue and Income... 605 Table 178 South Korea Online Gamer Forecasts: 2001-2009... 610 Table 179 Korean Game Market Revenue Sources: 2000-2003... 611 Table 180 Korean Online Game Market Share 2003... 612 Table 181 Top Korean Games Average Number of Concurrent Users 2003... 612 Table 182 Korean Internet Cafes 1999-2003... 612 Table 183 Korean Internet Café Users 2003... 612 Table 184 Korean Primary Use of PC January 2003... 612 Table 185 Actoz Soft Revenue and Income: 2000-2003... 614 Table 186 Actoz Soft Revenue and Income: 2000-2003... 614 Table 187 Actoz Soft Revenue by Country 2001-2003... 614 Table 188 NCsoft Revenue and Expenses: 2000-2003... 620 Table 189 NCsoft Revenue Breakdown: 2000-2003... 620 Table 190 NCsoft Revenue and Expenses: 2000-2003... 621 Table 191 NCsoft Revenue Breakdown by Country... 621 Table 192 Lineage Usage Statistics by Country... 622 Table 193 Lineage Korea Pricing Model... 624 Table 194 Lineage Overseas Pricing Model... 625 Table 195 NetMarble Revenue and Income... 628 Table 196 NetMarble Source of Revenue... 628 Table 197 NetMarble User Statistics...628

Table 198 NeoWiz Revenue and Income... 630 Table 199 NeoWiz Source of Revenue... 630 Table 200 Mpang User Statistics...631 Table 201 NHN Revenue and Net Income... 632 Table 202 NHN Game Revenue... 632 Table 203 Hangame User Statistics...632 Table 204 NetMarble Revenue and Income... 634 Table 205 NetMarble Source of Revenue... 634 Table 206 NetMarble User Statistics...634 Table 207 Webzen Revenue by Source 2001-2003... 637 Table 208 Webzen Revenue and Expenses: 2003... 637 Table 209 Webzen Revenue Breakdown by Country: 2002-2003... 637 Table 210 MU Usage Statistics: 2002-2003... 638 Table 211 Taiwan Online Gamer Forecasts: 2001-2009... 640 Table 212 Taiwan Game Market: 1999-2003... 640 Table 213 Gamania Revenue and Income: 2000-2003... 641 Table 214 China Online Gamer Forecasts: 2001-2009... 645 Table 215 NetEase Revenue and Income... 646 Table 216 NetEase Revenue by Service... 646 Table 217 Shanda Revenue and Income... 648 Table 218 Shanda Source of Revenue... 648 Table 219 Shanda Key Usage Statistics... 650 Table 220 Sina Revenue and Income... 651 Table 221 Sohu Revenue and Income... 653 Table 222 Japan Online Gamer Forecasts: 2001-2009... 656 Table 223 Rest of Asia Online Gamer Forecasts: 2001-2009... 658