Worldwide Digital Game Revenue To Hit $24 Billion

By Colin Tan on November 9, 2011, 10:43PM EDT
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Ovum, a British research firm, revenue of digital games is expected to hit the $24 billion mark this year, a 16 percent increase year over year. The firm also predicts that revenue will continue to climb and reach as high as $53 billion in 2016 as the market sees more casual and mobile games released, most notably due to the rising popularity of the free-to-play business model that many publishers are adopting.

According to IndustryGamers' report, Ovum notes that the trend of digital distribution, as well as the advent of data streaming services such as OnLive, will begin to pressure internet service providers to keep up with the demand of higher bandwidth, suggesting that companies upsell customers with gaming needs to better plans.

Benefits that digital distribution has brought include reduction of costs and boosting margins from the 20-30 percent range to 50-75 percent for digital games. Ovum adds that the rise of online passes for online gaming has also reduced the "threat posed by pre-owned games."

[Image via AppAdvice.com]

Source: IndustryGamers

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