Analyst predicts near 46 % revenue growth for DLC

Posted Jan 17, 2007 at 12:30AM EST by QJ Staff

Listed in: PS3, Wii, Xbox 360 Tags: Downloadable Content, In-Stat, Microsoft, PlayStation Store, Sony

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Given that all the next-gen consoles promise serious online time, this news bit shouldn't be too surprising. The research firm In-Stat has just announced that until 2010, they are expecting a 46% annual (that's a 46% boost per year) revenue increase for in-game advertising and downloadable content.

In connection to this, they also foresee an annual 41% increase in the number of subscribers accessing online content via home consoles (ie. PS3, Wii, Xbox 360). The handheld scene will be looking at a much higher 94.2% increase in subscribers.

"Sony and Nintendo both launched new online efforts focused on providing paid downloadable content in the form of games from past consoles as well as casual games that will be available fro US $3 to US $15," said In-Stat analyst Brian O'Rourke, apparently in reference to the Virtual Console and PlayStation Store online shops.

He further commented on Xbox Live, saying, "Meanwhile, Microsoft continued to be the leader in the online console space in 2006, with its announcement of a video and movie download service for the Xbox 360."

In related news, the Emerging Media Dynamics research group stated that they Xbox Live's TV and movie download service would earn $92.25 million this year before topping out at a whopping $726 million by 2011 .

Going back to the matter of  portable devices like the PSP and the DS, O'Rourke said "The PSP has some potential to drive online revenue through advertising or downloadable content."

Based on some of the recent reports we picked up regarding launch shipments and online subscribers, this may not be too far from the truth.

Via Next Generation

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