Parks Associates hosts "Social Gaming" Webcast - FEB 24

Join Parks Associates on Thursday, February 24th at 1 PM CENTRAL for the webcast, SOCIAL GAMING, and examine the current state of the social gaming industry and its business models.

Parks Associates research finds:
-- More than 200 million people play games on Facebook every month
-- 64% of U.S. broadband households with an Internet-connectable game console have it hooked to the Internet, a major increase from 2007, when only 25% had their next-gen console connected
-- PlayStation 3 and Xbox 360 have higher connectivity rates among the current generation of consoles, showing the power of multimedia offerings and popular game franchises in getting gamers online

Pietro Macchiarella, Research Analyst, Parks Associates will feature analysis and forecasts from examining:
-- How are social gaming publishers monetizing their popular games?
-- Are these companies at the mercy of social networks, or are they capable of developing brand loyalty?
-- Are open platforms, free distribution, and low development costs creating low entry barriers to this market?

Click here for registration information.

3 Technologies from CES Will 2011 be the Year of the Connected Home?

CES was a great experience! The energy of the show felt entirely upbeat and positive, full of optimism for this New Year and the new technologies that will literally dominate our lives.

With such an abundance of amazing technological innovation happening all around us, I find it hard to believe that anyone can not be absolutely thrilled about the direction we are moving! So with that, I’d like to present a few of the technologies that I feel are going to be major influencers around our homes this year.

Windows Media Center and Windows Embedded

There was a ton of activity and buzz around what Microsoft has been doing with Windows Media Center in conjunction with Windows Embedded. Windows Embedded makes a lot of sense, especially when you take into account that Windows Embedded Standard 7 now incorporatesWindows Media Center into the mix. What this allows for is the ability for developers to build “a variety of smart, connected, and service-oriented advanced commercial or consumer devices.”

Gesture Technology (i.e. Xbox 360 Kinect)

Gesture Technology (also known as Natural Interaction because there are no controllers being held like the Wii and now PS3 have) could turn out to have a very big presence this year with all of the excitement around its potential uses, and most importantly, loads of development happening behind the scenes. We are talking about not just interacting with your TV, but also with your PC, and even eventually things around the home (like lighting) by using just your hand movements and voice. Trust me, this thing even out-does the clapper!

While this technology is very new, many people are recognizing the capabilities that lie outside of the gaming industry and touch upon the connected home and beyond. It’s going to be thrilling watching this ground-breaking new field grow!

The Connected Home

One thing is for sure: the idea of the “Connected Home” is still very real to a lot of people and more importantly, to a lot of manufacturers. We have only touched the tip of the iceberg, in my opinion, of where these new technologies can take our home entertainment experience. There are far too many fresh technologies coming out of CES that are geared toward creating or enhancing the Connected Home...

So while the Connected Home has been a topic of discussion for many years, there has also been innovation accompanying it along this journey. New technologies of today replace the new technologies of years past-innovation is always a forward motion path. Like all technology that sticks around for awhile, there comes a time that it will hit critical mass. You can see this trend in any technology we take for granted today, from the telephone to the TV to the cell phone. They are all examples of technologies that took years to catch on, but then suddenly, reached a point where everyone wanted it in their home.
This truly can be the Year of the Connected Home, but it will take a major push from people with louder voices than me to help people understand its meaning and benefits.

--- Content submitted from Home Toys ---

Analyst Roundtable What's Hot in 2011 WEBCAST - JAN 20

What will be the defining consumer and technology trends of 2011?

Join Parks Associates on Thursday, January 20th at 1 pm CENTRAL for the webcast, Analyst Roundtable What's Hot in 2011, and learn more about CES 2011 announcements and notable trends in the digital home and CE industries. This event provides primary consumer data and trending, predictions, and forecasts for a number of product and service categories.

Parks Associates research finds:
-- U.S. sales of smartphones will reach nearly 60 million in 2011
-- Internet tablets will reach more than 13 million in 2011
-- By 2014, annual worldwide shipments of Internet-connectable CE will reach close to 300 million units
-- 80% of flat-panel TVs sold in the U.S. and Western Europe will have 3D capabilities

***Register for this complimentary event:
http://parksassociates.com/events/webcasts/registration/webcast_registration-free.htm

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JAN 20 | 1 PM - 2:15 PM CENTRAL
Analyst Roundtable What's Hot in 2011 WEBCAST
***Presenters include: The Parks Associates Analyst Team ***

This webcast features analysis and forecasts from Parks Associates examining:
-- Connected consumer electronics
-- 3D TV
-- Gaming
-- Mobile and portable devices, with a focus on smartphones, tablet computers, and e-readers
-- Broadband and digital television services
-- Advanced advertising
-- Digital home technical support services
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We look forward to you joining us for this Webcast!

Nearly one-fifth of active gamers in the U.S. spend money on virtual items

The gaming business is undergoing a major shift away from subscription models as virtual items become a larger part of its economy, reaching almost $6 billion worldwide in microtransaction revenues by 2015, according to international research firm Parks Associates.

Gamers are investing real money in virtual items in Farmville, World of Warcraft, and other online games, to the point they are filing lawsuits to establish ‘ownership’ of these virtual goods. The enormous player base, availability on multiple devices, and the introduction of instruments such as Facebook Credits contribute to growing revenues.

The Parks Associates’ new report Online Gaming: Global Outlook finds 19% of active gamers in the U.S. spend money on in-game virtual items. In contrast, subscribers to premium online game services decreased from 35% in 2008 to 28% in 2010. Publishers of social games, like Zynga, have seen revenues explode as larger percentages of their customers opt to pay for virtual items. The same trend is visible for massively multiplayer online games, where companies such as Nexon America have managed to reach millions of dollars in revenues from microtransactions.

It is becoming increasingly difficult to justify subscription fees. Thanks to social games and free-to-play MMOs, both casual and hardcore players have the option of playing quality games online for free. The virtual-items model that has proven so successful in Asia is finally generating significant revenues in North America.

GDC Online 2010 - The Short Course

After an exciting week at GDC Online, the online game developer's conference (Oct 5 – 8, Austin, Texas), I must confess that I am both exhausted (they are a very social set) and impressed with where the industry is headed. Although the misconception is still alive for some, online gamers do not all look like escapees from a Wayne’s World casting call. Au contraire; most online gamers look like, well, you and me. Depending on the gaming genre, you may now find yourself rubbing elbows with young professionals, stay at home moms/dads or your own middle-aged, albeit still youthful, parents while playing online (so...best to avoid too many in game discussions of your misspent youth).

It is a whole new world out there. And that world is getting bigger, thanks, in part, to online social gaming (who knew that virtual cows, crops or mob hits could be so much fun?) and mobile gaming. This is not to say that the traditional MMO is out, for there were many bright, shiny, new, beautifully crafted full-fledged massively multi-player games on display at the event. The graphics of these offerings were incredible and the game play was definitely designed to appeal to a wider audience.

It was an educational week for me and I am thankful to everyone who took the time to meet with us, offer an introduction or simply share their time. I am especially grateful to the other members of our panel, How Economic Context Affects Game Development from Start-Up to Grown-Up Companies, as well to the Canadian Consulate General Trade Commission that helped to put it together. I also appreciate the time and patience of the Metaverse Mod Squad group who were always on hand to answer questions and put things into perspective.

I am looking forward to the next gaming conference (E3, in June 2011), where I hope to add to the useful information garnered at this one, including:

• The mobile game development cycle is far shorter than the traditional game development cycle;

• Children are highly accomplished multi-taskers online; some having the ability to squeeze, on average, 11 hours of game play, social networking and media downloads into only 7.5 hours; and

• Game developers are oddly obsessed with zombies. Truly, they love unleashing them on other characters, sending them through obstacle courses, blowing them up, leaving them in odd places and giving them day jobs that require them to carry a briefcase in their cold, dead hands.

Parks Associates supports GamePlan Summit

Parks Associates is supporting the GamePlan Summit from September 21-23 in Chicago.

The EMA GamePlan Summit is designed to bring the top executives of retail and publishers together in one location to focus on strategies and ‘partnerships’ for the coming year. The EMA GamePlan Summit is a high level industry only conference for key retailers, retailers and game publishers enabling publishers and retailers to replace three months of sales tours with 3 days of consolidated retailer-supplier meetings, timed to support year-long strategic planning.

For more information about this event, click here.

Parks Associates supports NY Games Conference

Parks Associates is supporting the NY Games Conference in New York on September 30th.

The most influential decision-makers in the digital media industry gather at NY Games Conference to network, do deals, and share ideas about the future of games and connected entertainment. NY Games Conference – now in its 3rd year – features lively debate on timely cutting-edge business topics. Executives from publishers, developers, advertising, investment firms, social networks, technology providers and content companies mingle together at this top industry event. More Info

3D Gaming Summit, Parks is supporting

Parks Associates is supporting the 3D Gaming Summit 2010 on April 21-22 in Universal City, California.

The first ever 3D Gaming Summit will attract the brightest minds in the gaming industry to define the market opportunity for 3D stereoscopic gaming and entertainment. Delivering two days of packed in-depth discussions, the summit will help steer your strategy to capitalize on the next biggest thing in gaming! More Info

Pay-TV providers missing the middle market for gaming

Premium pay-TV gaming features do not currently maximize the market’s revenue potential, according to a new report from international research firm Parks Associates.

Many pay-TV providers, including Comcast, Cablevision, DISH Network, and DirecTV, offer premium packages that include simple, single-player games. Gaming ARPU: Games & the Service Provider finds roughly 5% of broadband households in North America and Western Europe are willing to pay about $5 per month for a premium gaming feature, the current average cost per game.

The number of subscribers would increase threefold if cost per game were lowered to $2.50. In the U.S. in particular, the boost in adoption rates would push annual revenues for single-player TV games over $300 million. Every country surveyed had similar growth in interest except the U.K., where the adoption increase would not compensate for the lower price point.

“Pay-TV providers are leaving money on the table,” said John Barrett, Director, Research, Parks Associates. “The industry’s attention is split between free gaming and more expensive, advanced features. Between the two extremes is an opportunity that has not been fully exploited.”

Despite this finding, Barrett predicts providers will continue to focus their efforts elsewhere. “Most service providers are giving up on the middle ground in gaming because the results have been unimpressive so far. It’s ironic because the rest of the gaming industry is trying to follow the success of the Nintendo Wii and target a more moderate gamer.”

Gaming ARPU: Games & the Service Provider analyzes the market potential for integrating TV and gaming services through pay-TV providers, connected TVs, and game consoles.

Parks Associates reports social networking users to exceed 95 million by 2013

Expanding population creates new opportunities for advertising and connected TV --

Social networking is moving to the television, driven by a young audience interested in video features such as multiplayer games, chat, and content discovery. This trend will help increase U.S. ad spending in social media to almost $3 billion by 2013, according to Parks Associates.

The international research firm, in its report Social Media & User-Generated Content, finds over one-fourth of broadband users ages 18-24 are interested in social media features on the TV. Key applications include multiplayer gaming, in-program chat, and “most watched” lists. At the same time, 23% of U.S. broadband households want to view content from sites like YouTube and Flickr on their TVs.

For younger consumers in particular, their appetite for social experiences don’t end on the computer screen but are enhanced via their access on TVs and mobile phones. This expansion of social media has implications for service providers, advertisers, and CE manufacturers as well as the networking sites.

Parks Associates forecasts 95 million social networking users by 2013. This diverse population will have a variety of different needs and wants. For example, threats like the Koobface worm, which targets Facebook users, underscore the need for integrated customer support solutions that can address social networking security issues. Service providers could combine these offerings with their network support services to sell a complete protection package.

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U.S. MMORPG Companies Need To Offer More Free Games – Not Subscription Models – To Grow Market

Parks Associates Study Outlines Strengths and Weaknesses in MMORPG Market...

Massive multiplayer online role-playing game (MMORPG) publishers may have to start giving away playing time to attract more players into online role-playing worlds, according to Parks Associates’ Electronic Gaming in the Digital Home II.

This consumer study of 2,000+ U.S. Internet gamers found only power gamers are interested in subscribing to an MMORPG service, whereas social, dormant, and leisure gamers all show significant interest in a free-to-play, microtransaction-based model. The MMORPG market will be difficult to enter with a subscription model at this stage.

Fourteen percent of gamers not currently playing MMORPGs would be interested in playing if they could play for free. Only 2% of gamers from the same group were interested in adopting an MMORPG with the traditional subscription-based model. The good news for MMORPG companies is they can recoup their investment over time through microtransactions, where game publishers and operators make money through sales of in-game items.

The barriers to entry, in terms of time and money, are simply too high for many potential customers, according to Cai. “Free-to-play models offer flexibility, and players can choose how much they want to invest based on interest level and play patterns. Microtransaction models have the best potential to grow the U.S. MMORPG audience.”

Triggers & Inhibitors for CE Purchases

New research from Parks Associates examines the decision-making process of today's consumers and key factors that trigger or inhibit purchasing. Price isn't the only important factor, especially as people buy more fun, high-tech devices such as gaming consoles, HD DVD players, photo printers, etc.

The Changing Consumer Electronics Purchase Process survey provides greater definition and measurement of purchase intentions as well as key barriers to technology adoption. The analysis measures the impact of information resources and word-of-mouth endorsements, explains the research and evaluation steps for a product purchase, and links the purchase decision steps into an evaluative metric that identifies critical steps.

Research Analyst, Michael Cai Speaks at SXSW

According to Parks Associates, 59 percent of all consumers in the U.S. who play games on their mobile phones are women. The majority of Internet-based gamers also are women. Will women continue to drive the growth of casual gaming? Or will men drive right past them?

Parks Associates analyst Michael Cai will be at SXSW Interactive this week to participate in "The Female Takedown of Casual Gaming," on Sunday at 10am in Austin, Texas.