Abstract
This report assesses the Massively Multiplayer Online gaming (MMO) sub-sector of video game playing, and the most popular virtual worlds, such as Second Life and Habbo Hotel. When Mintel last analysed this market, in November 2005, MMOs, then widely known as MMOGs, were still very much in their infancy, in terms of mass-market acceptance and knowledge. Now, thanks to the likes of World of Warcraft (more than 9 million subscribers worldwide) and various MMOs aimed at kids, they are threatening to break into the mainstream video game sector.
However, developers are in danger of polluting the market through the massive choice available and rushing out titles that don' t further the genre, and which could, in fact, hold it back from legitimising itself. One of the ways in which developers can insure against this is to combine new technology with virtual world characteristics and make them a more complete experience.
There are few people in the industry who do not believe that virtual worlds are the next big evolution for the Web, with bricks-and-mortar businesses looking to exploit high active user numbers. The key will be whether developers, publishers and other concerns can turn virtual reality into real profits.
Table of Contents
- Issues in the Market
- Main issues
- Definition
- MMOs v Virtual Worlds
- Abbreviations
- Market in Brief
- Massive growth in titles
- The casual gamer cometh
- Resistance to subscriptions
- World of Warcraft dominates MMOs...
- ...while Second Life and Habbo Hotel dominate virtual worlds
- Asia dominates
- Shifting revenue streams
- The evolution from games to life sims
- Thinking outside the screen
- Internal Market Environment
- Key points
- Video games market
- Figure 1: Sales of video game hardware/software, 2001-11
- MMOs in context
- Raking it in rather than forking out?
- The sociological aspect of MMOs
- The inherent need for a sense of community
- Getting MMOs right
- Cross-promotional strategies and trans-media integration
- MMOs the new battleground for TV networks...
- ...and toy manufacturers
- Broader Market Environment
- Key points
- PDI
- Figure 2: Trends in personal disposable income and consumer expenditure, 2002-12
- Age
- Figure 3: Trends in the age structure of the UK population, by gender, 2002-12
- Lifestage
- Figure 4: Forecast adult population trends, by lifestage, 2002-12
- Socio-economic groups
- Figure 5: Forecast adult population trends, by socio-economic group, 2002-12
- Consumer electronics and use of technology
- Kids and video game usage and ownership
- Figure 6: Usage and ownership of computer games consoles and hand held games consoles, 2006
- Household ownership of PCs
- Figure 7: Household ownership of PCs, 2003-07
- Ownership of mobile phones, PDAs, and video games consoles
- Figure 8: Ownership of Mobile phones, PDAs, and Video games consoles, 2003-07
- Internet and broadband penetration
- Figure 9: Internet and broadband penetration at home, 2003-07
- PCs and the under-11s
- Figure 10: What 7-10s use PCs for, by demographic sub-group, 2006
- The Internet and the under-11s
- Figure 11: What children aged 7-10 use the Internet for, 2006
- Money and the under-11s
- Figure 12: How money is spent, 7-10-year-olds, 2002-06
- PCs and older kids
- Figure 13: What 11-14s use PCs for, by demographic sub-group, 2006
- The Internet and older kids
- Figure 14: What children aged 11-14 use the Internet for, 2006
- Mobile phones and older kids
- Figure 15: Most popular mobile phone features used by children aged 11-14, 2006
- Competitive Context
- Key points
- General leisure spend
- Figure 16: Consumer expenditure on selected leisure goods and activities, 2002-07
- Strengths and Weaknesses in the Market
- Strengths
- Weaknesses
- Market Size
- Key points
- Subscriber numbers
- Figure 17: Top worldwide game subscriber numbers, 2005-07
- WoW the king of MMOs
- The future
- Market Share
- Key Points
- MMO genres
- Figure 18: MMO subscribers, by genre, June 2006
- Companies and Brands
- A few facts
- Companies
- Blizzard Entertainment
- Cryptic Studios
- EA Mythic
- Jagex
- Linden Lab
- NCsoft
- Figure 19: NCSoft operational MMOs and launch dates, as at October 2007
- Sony Online Entertainment
- Figure 20: SOE operational MMOs and launch dates, as at October 2007
- Square Enix
- Sulake Corporation
- Ubisoft
- Other MMOs/social sites
- The Game-playing Consumer
- Figure 21: Video game playing, June 2007
- MMO and online virtual world players by demographic sub-group
- Figure 22: MMO and online virtual world players, by demographic sub-group, June 2007
- MMOs Played and Latent Potential
- Figure 23: MMO and online virtual world players, June 2007
- Attitudes Towards MMOs
- Figure 24: Attitudes towards MMOs and online virtual worlds, June 2007
- Positive attitudes towards MMOs by detailed demographics
- Figure 25: Positive attitudes towards MMOs and online virtual worlds, by demographic sub-group, June 2007
- Negative attitudes towards MMOs by detailed demographics
- Figure 26: Negative attitudes towards MMOs and online virtual worlds, by demographic sub-group, June 2007
- Forecast -- MMO playing in 2012
- Conditions that will affect the market
- The setting for the forecast
- Three million MMO gamers by 2012
- Figure 36: Forecast of the percentage of Internet users who have played subscription-based MMOs, 2007-12
