“The next generation of video gaming that is poised to throw open an entirely new revenue stream!
The world of video gaming is evolving. Today’s video game players have infinitely more choices and options than we did. The market has quickly evolved from the Atari. Now gamers can play on a home computer, Playstation, Xbox, or Wii, and the number of games available is astounding. To add to the convenience factor, you don’t even have to drive to a store to rent games! Now you can order video games online, and get them delivered right to your home.
New technology, computers and consoles are now in a majority of households. Forty percent own a console video game player, while twenty-four percent of households own a handheld video game player (Video Software Dealers Association). Sixty-nine percent of American heads of households play computer and video games, and four out of every five gamer parents say they play video games with their kids. Two-thirds of those say it brings their families closer together.
The second highest selling computer game genre is family and children’s games. Parents are finding more games they can play with their children, allowing them to socialize together. Plus, they are able to better monitor what their children are playing. Technology is tying the family together, and expanding the marketplace.
Through the Roof
US computer and video games sales were up 6% in 2006 to $7.4 billion. That’s triple the amount of sales just a decade ago. The trend in sales growth since 1996 has been straight up. That’s right! Video game sales are constantly rising every single year. U.S. game sales are expected to steadily climb 15% PER YEAR through 2010 (“Video Games: Serious Business for America’s Economy” 2006).
Total it all up, and the video game industry as a whole generates more revenue yearly than Hollywood! In the first 24 hours of sales of Halo 2, earnings were $125 million. It made $11 million more than the Hollywood record-breaking opening weekend gross sales for the film “Spider-Man!” (San Francisco Chronicle)
But who ultimately controls the purse-strings? In a word, parents. Eighty-nine percent of gamers under 18 say their parents are present when they purchase games. With the average frequent buyer age at 40, that means that not only are adults buying games for their kids, but for themselves as well.
The New Mainstream – Online Sales and Rentals’
Rentals and online gaming are up, too. U.S. Rental revenues are growing, bringing in an estimated $700 million annually (Los Angeles Business Journal). Now, companies such as Blockbuster Video, Hollywood Video, Gamefly, and Interflix rent video games to users online. Plus, over 13 percent of online broadband users subscribe to an online gaming service, which suggests that a significant share of the demand for broadband Internet access can be attributed to the demand for video games (“Video Games: Serious Business For America’s Economy” 2006). Again, higher speeds from broadband and the lower cost of internet access are allowing more and more households to access games online.
GottaPlay is poised to welcome this new surge of online game availability. GottaPlay lets you rent, buy, or trade thousands of video games online, then sends the titles via first-class mail straight to your home – no late fees or shipping costs! Plus, with its unprecedented social community of gamers, its sure to be the new online home for all gamers worldwide. Members can meet, communicate, trade and share with like-minded players everywhere.
The flexibility and deliverability of GottaPlay will aid its revenues, as people everywhere will be able to “test” games by playing them first as a rental or as an online demo. They’ll also be able to get reviews and information from the online community, adding to the likelihood of more user satisfaction and transition from rentals and online play to further purchases.
The Bottom Line
When you connect the dots, the projected revenues from video gaming become staggering, especially when you look closely at the convergence between technology, availability, and demand. It’s not just about kids anymore. Members of the entire family are getting involved in video gaming. And when you can deliver the ability to purchase, rent and trade games to any member of a household via the internet, you’ve opened up an entirely new and convenient means to craftily deliver games straight to the consumers. All of a sudden, you’ve carved out a very attractive piece of that yearly $10 billion pie. Enjoy the sweet rewards!