According to a new report by Strategy Analytics, gaming is outselling video and music in the online market. Online sales allegedly account for 33% of all software revenue in the industry at this point with $3.8 billion worth of revenue in '06. They expect online gaming to generate $11.8 billion by 2011.
The report says the thing driving the market is the continued growth of broadband services and opportunities in the MMO genre. It's pretty easy to see how this could be lucrative, just in the last two years we've seen the explosion of Xbox Live Arcade and Marketplace, along with MMOs like WoW and LoTRO. For all we know they might be setting the bar too low with the $11.8 billion estimate if things keep moving toward digital distribution.