Online Gaming Business

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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:

Old:

Games in the street
Playing games in watch devices
Sony Play stations
Gaming through gaming consoles
Gaming on CDs
Gaming on digital video discs

New:

Gaming on internet

Experts:

Andrew House - Sony executive VP

Bill Nielsen - Microsoft Marketing Director

Timing:

1999
U.S. Senate passed the Internet Gambling Prohibition Act of 1999 to ban all online gaming
2002
The Internet Gambling Enforcement Act was passed by the House of Representatives in U.S.
2003

Online games access reached 23 million U.S. households by the end of 2003. Of the 186.4 million console games sold in the U.S. in 2003, more than 23 million were Web-enabled for online playing
Asia, the largest broadband market, become the source for 50 percent of online game revenues.
Online Game Revenues Worldwide has reached to $1.9 billions.