“Led by Microsoft’s success in Xbox Live, all three console makers are dreaming up many innovative offerings to entice console households to get connected and spend more money,” said Yuanzhe (Michael) Cai, Director of Broadband and Gaming, Parks Associates.
According to the report, the revenue will flow in thanks to digital video distribution, downloadable games and content, virtual worlds and avatar-based microtransactions, multiplayer gaming services, and dynamic in-game advertising.
“Broadband connectivity, now a common feature for game consoles, is a key enabler for new business models,” “Among the different online revenue opportunities, digital video distribution and downloadable games and content are the most promising,” Cai added.