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Report: 92 percent of PC game sales in 2013 were digital
Console games may still occupy a large amount of retail space with physical copies, but PC games are another story altogether, according to research firm DFC Intelligence. The organization told website PC Retail that 92 percent of all PC games sold across the world in 2013 were distributed digitally, and that the number is expected to grow. DFC also told PCR earlier this year that PC gaming had exceeded consoles in terms of revenue, but with a new generation of consoles - both of which are offering more games digitally on the same day as their physical counterparts - both of these claims could change by the time we look back on 2014. But then, we also know how well our wallets fare during a Steam sale ('not well' is the answer). Really, it's anybody's guess as to where the market will shift. In the meantime, analysts gonna analyze. [Image: Valve]
Research firm says Dota 2 tops League of Legends [Updated]
Look out League of Legends: You've just been knocked down to second place. DFC Intelligence has determined that Valve's Dota 2 is now the most-played online game in the North America and Europe, with LoL in the number two spot and World of Warcraft in a distant third. DFC made this claim based on its PC Game Meter service, which draws data from multiple sources. The service does not include browser and casual games in its report. Update: Riot Games contacted us to say that DFC has retracted the report press release. GamesIndustry also posted the following update: "According to a Riot Games spokesperson, League of Legends sees 'over 500,000 peak concurrent players every day on just the EU West shard,' which doesn't even touch on players in the United States. This is contrasted with the 325,879 players that Valve's Steamgraph shows as the all-time high for Dota 2 beta."
Online sales will dominate the market by 2013
If you purchase your video games from a brick and mortar retailer, chances are you will be in the minority in just a couple of years. GamesIndustry.biz cites a new report that predicts online game sales will become the dominant force in the market by 2013 through individual websites, retailers like Amazon.com, and video game distributors like Steam. A DFC Intelligence analyst noted that boxed game sales already peaked in 2008, and that as physical game sales slowly decline, online sales will pick up at a marked pace. DFC is a research and consulting firm that covers the field of video games. Last year, online game retailers sold over $19.3 billion worth of digital merchandise -- a figure that's expected to rise to $37.9 billion by 2016. While real-world stores have much to worry about as the market shifts in the direction of online sales, the industry as a whole is expected to continue to substantially increase its growth over the next half-decade. One of the "key drivers" for that growth is PC games. The analysts also predicted that in-game advertising will increase two-fold in the next few years as advertisers realize the potential for this blossoming market.
Analysts weigh in on Panasonic's Jungle
New tech does not always equal gimme gimme -- according to several prominent analysts, Panasonic is set to engage in quite the uphill battle with its new handheld, The Jungle. Both Bill Pidgeon of M2 Research and David Cole of DFC Intelligence told IndustryGamers they believe the unit is "a non-starter." Colin Sebastian of Lazard Capital Markets said it looks like "an uphill challenge to launch a new portable gaming device unless there is some meaningful differentiation or access to proprietary content," while EEDAR's Jesse Divnich offered that its success hinges on third-party support, saying that, "with any hardware platform regardless of its quality, the absence of strong third-party support will most certainly end in failure." All valid points, but should these guys be giving the device the benefit of the doubt? As it stands right now, we don't know much about the system other than what it aims to do: give MMO players a dedicated piece of hardware so they can take their games on the go. Given how popular MMOs are (and, in turn, how much of the cash money they generate), from a business standpoint it would seem win-win; nobody else is offering something to MMO players who may want a bit of portability. But, on the other hand, the problem is -- at least according to these analysts -- that the handheld doesn't particularly fill a void that can't be filled by a netbook or laptop.
Virtual sales boom, will top $3 billion in five years
Gamasutra reports on a new study from research firm DFC Intelligence that concludes that sales of virtual goods are on the rise. The study surveyed 5,000 gamers from Europe and North America for a two-month period in early 2010, and also sampled seven years of Live Gamer historical data. Live Gamer, a virtual world monetization company with clients that include Sony Online Entertainment and Funcom, partnered with DFC for the study. DFC reports that 88 percent of their survey base purchased virtual content, a label that includes everything from MMO microtransactions, to music, to movies and games. Sixty percent of this group said their digital purchases were in-game items. DFC says the growing trend of virtual item sales paints a bright future for MMORPGs as well as social networking platforms, predicting that total item sales for "MMOG Lite" titles will exceed $3 billion by 2015. Head on over to Gamasutra for the full article.
DFC: 88 percent of gamers have bought virtual goods
According to a recent study, 88 percent of gamers have purchased digital content over the last several years. The study was conducted by market research firm DFC Intelligence using a survey of 5000 gamers from the US and Europe during the first two months of 2010. The study also looked at data from several different countries -- including South Korea, the U.S., Japan, Germany, Vietnam and the Philippines -- gathered over the last seven years. The worldwide data was provided by Live Gamer, a company that helps developers and publishers monetize their products. It's worth noting that the content described by the survey includes music and movies as well as in-game content. Still, 60 percent of those surveyed have purchased in-game items, most of which were offered as part of free-to-play games. DFC analyst David Cole notes that the free-to-play model gives games distinct advantages over traditional single releases, saying that "a single product can have a lifespan of years online as opposed to a few months on the retail shelf." According to DFC, free-to-play games like Farmville and Combat Arms, which the firm refers to as "MMOG Lite," are expected to grow substantially over the next few years. DFC sees what it calls "MMOG Lite" products growing substantially in the next few years. Specifically, DFC predicts that the MMOG Lite market in Europe and North America will grow from $800 million in 2009 to over $3 billion by 2015. But don't feel left out, core gamers, these finding apply to all kinds of games. Live Gamer's Andrew Schneider points out that core gamers are "increasingly engaging in the purchase of virtual goods" and adds that the study illustrates "the market potential as traditional Western game publishers migrate towards microtransactions as the central monetization method." Frankly, the study's findings seem just a little far-fetched. Now, if you'll excuse us, the crops need tending. [Via Gamasutra]
PC gaming revenue grew in 2009 as retail PC game sales shrank
[Logitech PC accessories] Despite fears about the languishing PC game industry, revenue seems to have grown a bit in 2009. According to PC Gaming Alliance's Horizons Report, revenue hit $13.1 billion in 2009, versus $11 billion in 2008. Don't expect that growth to translate to increased shelf space for PC games, however. The report notes that digital distribution sales are way up, as are the sales of virtual items. "In 2009 we saw North America and Europe experience a rapid uptake in purchasing virtual items," PCGA president Randy Stude said. "This model is what drove growth in Asia and we think it is just starting to come to Western markets." As expected, given the rise in digital distribution, packaged game sales have dropped for a second year, now accounting for just 20 percent of PC game revenue. It appears that PC games are going to go all digital unless we start seeing some really awesome cloth maps.
Analyst: Mass Effect 2 outsold everything else 6-to-1 in Jan.
If you bought Mass Effect 2 and you like being on the winning "team" when it comes to game trends, high five. According to DFC Intelligence, BioWare's latest spacefaring adventure sold an estimated 1.1 million copies (of the Xbox 360 version) in January -- six times the sales of any other game. Estimating game sales based on GamerDNA activity, DFC also believes that there was a significant uptick in play of Mass Effect as well, "likely supported by the ability to transfer a save file from a completed Mass Effect game into Mass Effect 2 where several key player decisions in the first game could be carried over into the second game." The other leading Xbox 360 sellers in DFC's estimate include Darksiders (150,000), Bayonetta (170,000) and Army of Two: The 40th Day (175,000) -- with Dark Void somewhat of a surprise bomb (22,000).
Modern Warfare 2 dominates November gameplay on 360
Using GamerDNA results as a guideline, DFC Intelligence charted the popularity of 360 games last month, and there are some interesting revelations. For one: Every person alive or dead, including the author of this post, is playing Modern Warfare 2 as we speak. Okay, so that's a slight exaggeration but it was very popular, with somewhere between 22 and 17 percent of GamerDNA's Xbox 360-playing subjects playing the game throughout all of November. Also somewhat surprising is just how well Borderlands – which, let's be honest, didn't have the biggest marketing push – did, handily holding on to second place until the release of Left 4 Dead 2 and Assassin's Creed 2. Admittedly this list doesn't reflect the time spent by those who aren't online, but do you seriously care about those commoners anyway?
Analyst: 'Sony was saved by the success of the Wii'
If you haven't heard, the PlayStation Wii is so successful, it pretty much prints money. Wait, Sony didn't make the Wii? Then how did the market analysts of DFC Intelligence come to the conclusion that "Sony was saved by the success of the Wii?" According to DFC, the Wii's mainstream appeal forced Microsoft into a successful, but not entirely dominant position. "The main danger Sony faced was that the Xbox 360 would become embedded as the system of choice. Instead consumers flocked to the Nintendo Wii. The Xbox 360 had solid sales, but they have not been enough to give Microsoft anywhere near a breakout market position," the report explains. Should enthusiasm for the Wii wane this holiday season, the recent price drop, coupled with with impending release of God of War III, finally positions the PS3 as a viable choice for mainstream consumers, the report notes. EEDAR's Jesse Divnich agrees, pointing out that Sony can finally utilize its leverage from the previous generation. "People who purchase a PS2 are more likely to purchase a PS3 in the future. Consumers, believe it or not, are pretty loyal." Three years after the launch of the PS3, Blu-ray is also finally becoming a marketable feature for mainstream consumers, the report argues. "This holiday season Blu-ray movies are finally getting a major focus at retail ... Blu-ray clearly now becomes a strong selling point for the PlayStation 3." Undoubtedly, SCEA will create an ad that focuses on this aspect of the system that "only does everything." While DFC's report comes off as incredibly bullish, it's understandable to see why there's some doubt over Sony's ability to capitalize on the moment. Let's not forget, this is a company that managed to fall from first to last place in the course of a year. "The cards are in Sony's favor and now is the time to make the most of them ... Now is the time for Sony to shine ... or else." [Via CVG] Source - Is it Time for the PlayStation 3 to Shine? Source - How the venerable PlayStation 2 made it to 9 years old
Analyst: DS and PSP growth 'peaked,' iPhone to drum future growth
DFC Intelligence analyst David Cole thinks that Nintendo and Sony devices will still lead the handheld market by 2014, but that the iPhone/iPod Touch will drive growth, thanks to a little thing called the App Store. IndustryGamers took note of the new report, where the analyst believes that the worldwide mobile and portable games market will reach $11.7 billion by 2014, which includes the PSP and DS, with Apple's devices pushing 24 percent of software sales.The company found that of over 8,000 surveyed respondents, 54 and 69 percent of North Americans and Europeans, respectively, had played a game on their phone in the last year. The report found that the the most popular service for purchasing apps for their phone was Apple's App Store -- shocking, right?
Report: PC remains 'most lucrative platform,' worth $11b
Considering the PC gaming industry started out the year with 10 million World of Warcraft subscribers under its belt, is anyone shocked to find out that the PC has been called the "most lucrative platform" of 2008? In a study paid for by the PC Gaming Alliance -- a "non-profit industry alliance" made up of members of various companies, including Activision and Microsoft -- PC gaming in 2008 apparently brought in over $11 billion in revenue. The study itself was conducted by DFC Intelligence, a market research company specializing in the game industry, and reached some interesting conclusions. According to the study, expanded broadband penetration and adoption of digital download services (like Steam by Valve) lead the way for the PC gaming market's growth in 2008, as well as "the growing presence of game cards at major retailers like 7-Eleven." Unsurprisingly, the study also found that MMOGs are "the leading products for both revenue and profits," citing WoW as 9% (or $1 billion) of the entire PC gaming market's revenues last year.We'll take this report, compounded by the NPD report that retails sales of PC games in 2008 dropped by 14 percent, as solid evidence that PC gamers are the first to take major steps towards exclusively downloadable games.[Via Edge]
How do MMOs make money?
The Simple Lifeforms blog went through a recent DFC Intelligence report on the most commercially successful MMOs and pulled out some interesting points. World of Warcraft took home the most revenue for a single game in 2008 with an estimated $500M+ and all MMOs combined (worldwide) earned an estimated $1,875M.The top 10 earners list for 2008 included only one game that launched in the 1990s and that MMO was Lineage I. The majority of the top 10 list also featured MMOs of the fantasy genre, which probably won't come as a surprise.Simple Lifeforms classified four primary ways that make MMOs money: retail, subscription, virtual goods sales (aka RMT), and hybrid models. While the retail/subscription model is generally considered the tried and true way to run your MMO business by most of the big publishers, you might find it interesting that only half of the top 10 list is comprised of these types of MMOs.An unfortunate drawback of the DFC Intelligence report is that the revenue figures for the nine titles other than WoW have very large spreads. We see they made more than $150M and less than $500M but aren't given anything more specific than that.
WoW sits atop the list of money making MMOs of 2008
DFC Intelligence announced a "comprehensive study" in which they took a look at the top money making MMOs. And who sits at the top? Why our very own World of Warcraft, of course.According to the report, which was brought to our attention by Shawn Schuster of our sister site Massively, WoW earned over $500 million in 2008. We know that there's a substantial divide between WoW and the rest of the MMO market, and to drive the point home: WoW is the only game in the $500 million+ category.DFC Intelligence will be releasing a more detailed analysis of the top MMOs on February 16th. Be sure to keep an eye out on Massively for coverage of the other games on the list, and we'll bring you the WoW information when it comes up.
Top 10 money-making MMOs of 2008
In an upcoming "comprehensive study" by DFC Intelligence, they take a look at the top money-makers in the MMO space worldwide. To no one's surprise, World of Warcaft has topped the list, followed by several Asian MMOs like MapleStory, Lineage I and II, Shanda and Fantasy Westward Journey. As for the most users, this study doesn't touch on that. With such a wide discrepancy between active subscribers and prepaid game card users, it's a difficult number to tack down.What makes this list frustrating is the complete lack of details involved. While WoW is reported to have earned $500 million+ in 2008, the next four on the list are reporting $150-$500 million, and the final five are reporting anything in the $50-$150 million range. To the company's credit, this isn't the final analysis. Their detailed February 16th report promises to give more information on each of the top 10 games. We certainly look forward to that.
Analyst: PS3 won't break even
DFC Intelligence, a firm that specializes in marketing research for the video game industry, have had mixed feelings about the PS3 since its launch. Just compare some of their predictions from the past here, here and here, with other ones here, here and here. Their latest forecast for PS3, unfortunately, includes a little more doom and gloom for our favorite console.Senior technology analyst Wanda Meloni believes "Sony has the most to lose this current generation" and she doesn't believe the PS3 will "break even" in its lifetime. Additionally, she predicts only 40-50 percent market share for Sony, as oppose to 67 percent during the PS2 era. Regardless of what place the PS3 ends up this generation; in the end, do you think PS3 will make a net profit for Sony?
Dave Perry: Sony has lost more on PS3 hardware than it made on PS2
The PS2 is unquestionably one of the greatest successes of videogaming history. However, it appears that the high manufacturing costs of Sony's latest effort has negated all the profit they made from the PS2 hardware -- at least according to developer Dave Perry, with information obtained from research firm DFC Intelligence (via 1UP). It's estimated that the console, which cost Sony up to $260 of losses per system sold, has left Sony with a total loss of $3 billion in the PS3's life so far.While these figures seem rather bleak, one has to note the careful language used in the report is specifically about hardware, not software. Ultimately, Sony's goal is to profit off of its first-party offerings, and the licensing fees imposed upon third party developers.[Via Joystiq]
Wii Warm Up: How do you define a gaming fad?
Despite the fact that it sells like gangbusters week after week, wherever it can be found (except New Zealand), some people still like to argue that the Wii is just a fad. Other people (like the analysts at DFC) believe that the Wii "has the chance to be one of the best selling systems of all-time."If you visit this site you most likely enjoy playing the Wii, but where do you weigh in on this fad business? Do you think that the Wii's sales will eventually plummet? Or do you believe that the Wii might even overtake the PS2 at some point? Maybe you fall somewhere in between?It's time to bring out your inner analyst and let us know where you stand on the issue.Note: Stop -- Hammer time.
DFC says Wii to be cause behind $57 billion gaming market in 2009
Hollywood, eat your heart out. It looks like gaming is lined up to be a big money enterprise come next year (as if it isn't already), according to analyst firm DFC Intelligence. David Cole, one of the firm's analysts, thinks that the driving force behind this sharp rise is none other than the Wii."The Wii does not appear to be a fad and it has the chance to be one of the best selling systems of all-time," said Cole. Another analyst, Jeremy Miller, is quick to point out that Nintendo is also a very successful publisher, stating "The Wii not only has unique features and a broad demographic appeal, but Nintendo is dominant as a software publisher." Despite Nintendo's winning formula that is the Wii, the firm sees the PS3 selling more than the Wii in 2012. We know of at least one entity that agrees.[Via Joystiq]
DFC predicts $57 billion gaming market in 2009, Wii to drive
The soothsayers at analyst group DFC Intelligence have revised their already rosy outlook for the game industry in 2009, predicting that the market, including consoles, PC and online games, could now reach a mind-blowing $57 billion by next year. DFC foresees that much of this growth will be driven by (surprise!) the Wii, a platform DFC's David Cole feels "has the chance to be one of the best selling systems of all-time." Looking further ahead, DFC backed off of its previous prediction that annual PS3 game sales would surpass those on the Wii by 2012, now stating that the pair will simply be equals. Still, with the lion's share of top selling titles for the Wii coming from Nintendo itself, fellow analyst Jeremy Miller adds that "for many third party publishers this means they will have much greater success on the Xbox 360 and PlayStation 3, even if Wii sales continue to be strong." But what of the PC? Oh, there's love there as well, with gaming on the personal computer expected to reach an impressive $19 billion on its own by 2013, no doubt steered by online sales, which exceeded a staggering $7 billion in 2007. If DFC is on point with its prophecy, the future is so bright, we may just have to reach into the drawer for some shades.
