Online Gaming Business

                                                                Created By Eser Torun

Table of contents:

1 Description:

2 Enablers:

3 Inhibitors:

4 Paradigms:

5 Experts:

6 Timing:

7 Web Resources:

Description:

Since our early childhoold, Games have been so effective in holding our attention for long periods of time. Therefore, they have been even used as a means for educating students and training corporate employees. This not only makes the content fun but also allows users to interact with the content, which makes for effective learning. Today, games are not only distributed through gaming consoles or CDs and digital video discs, they are also distributed and played on the Internet. By doing so, the Net has become a medium of entertainment for millions of users around the world. The advantage of having games on the Net is that you are able to play those games as long as there is Internet connection. Not only can you play those games whenever you feel like it, you can play with those who are not even in the same room, or even in the same time zone for that matter. And for most part, they are free. As a result, online games employ myriad features that enable them to cater to larger audiences as well as exploit capabilities of their diverse players and the internet. As a result, online gaming is becoming increasingly popular, and the associated business that sustains it has seen significant growth.

Enablers:

Increased Popularity of Online Games in China:

Although North America, Australia and Europe have been known as the major markets for online games, China is emerging as a promising growth market due to its 200 million young people. China has become one of the regions that boast fastest growth in the online games industry in the world after 10 year's development. The number of online game players grew from 8.4 million in 2002 to 13.8 million in 2003, a year-on-year increase of 63.8 percent, while the sales income increased from 910 million yuan (109 million US dollars) to 1.32 billion yuan (159 million dollars), up 45.8 percent. Industry insiders forecast the market potential of online game industry in China would reach 9.3 billion yuan in value by 2006.

Online games are means of advertising and promotion:

With the rapid growth of the Internet gaming industry, marketers have turned to online games as venues for disseminating advertising and promotional messages Online games are also regarded as increasing brand awareness as well as expanding exposure to cross-promotional materials Interactive games in the form of advertising and promotional tools provide marketers with opportunities for developing and implementing their marketing mix strategy on the Internet.

Expansion of broadband:

Citing greater global use of broadband as their reason, researchers at DFC Intelligence are forecasting that the market for online gaming will increase 415 percent from the end of 2003 to the end of 2009. Asia, the largest broadband market, was responsible for 50 percent of online game revenues last year. Real and Projected Online Game Revenues Worldwide (in billions)

Growing Online Gaming Business in Thailand:

The value of Thailand's online gaming market is expected to reach Bt1 billion this year, a 42.8-per-cent jump from last year's Bt600 million to Bt700 million. It is estimated that 3.68 million online gamers, accounting for 56.7 per cent of the country's 6.5 million Internet users.

Inhibitors:

Increased Social Concerns:

--The increase in problem gambling: Despite the commercial benefits of online games for marketers, there have been rising concerns about the "harm" gaming websites may inflict on consumers. --Children's access to gambling sites --Fraud over the Internet --Moral decay --Increased violence and aggression: Researchers have reported evidence to suggest that violent computer games among children and adolescents could increase the priming and elaboration of aggressive thought networks, weaken inhibitions against aggressive behavior, and increase acceptance of the use of violence to resolve conflict.

Regulation of Gaming Sites:

With online gaming becoming a major entertainment form, there are growing concerns that websites promoting gambling and violent games have undesirable effects. Such concerns have led to numerous calls to regulate gaming sites.

Requirement of high investment in telecom networks: Online gaming is requiring high investment in telecoms networks, in order to deploy technology to efficiently control the traffic over networks and avoid delays which could deter users.

Paradigms:

Experts:

Timing:

Web Resources:

Shanghai Telecom expands into online gaming business

China's online games industry develops rapidly