Industry

In the most recent update to the DFC Intelligence Forecast for the games industry, the metrics group notes that a $36 billion industry growth to $100 billion is expected by 2018. This is right in line with what we've been told previously, but new statistics suggest that thirty percent of the entire games industry will be owned by the mobile gaming space.

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2013 saw the explosion of mobile gaming, bringing in $10 billion in total revenue from the industry's 1.17 billion gamers. The intelligence firm projects a $19 billion mobile growth -- a total of $29 billion -- by 2018, comprising 30% of total game software revenue. This expansion doesn't come without its growing pains, though:

Asustek (NASDAQ: ASUUY) Chairman Jonney Shih predicted in ASUS' Tuesday shareholder meeting that traditional desktop PC shipments would increase substantially in 2H14. The company believes that XP's expiration will be cause for a boon in desktop shipments in the business-client sector, but also noted that demand for tablets has died down in the consumer market.

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It is little wonder to anyone who’s watched any eSports that the entertainment medium is growing. Twitch.tv just recently announced that it now streams 12 billion minutes of video content per month to 45 million unique monthly viewers, a 2x growth over 2012’s year-end stats. Those metrics measure streaming as a whole, but the competitive gaming scene has grown its own niche and is clinging on tight.

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Online gaming service Raptr has come out with some interesting data regarding consumer spending on video game hardware and software. Headlining this data is information that 74 percent of gamers plan to upgrade their PC hardware and/or console within the next 12 months.

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On May 15th, the current net neutrality rules are going up for preliminary vote at the FCC. This initial vote is only a step in the overall process for the unfair segregation of web traffic to come to life. Our first article broke down the basics of what is in flux, so if you're unsure of what's going on, that's the place to check first. Our second article was a short opinion piece (read: doused in sarcasm and lit aflame with satire) on Chairman Tom Wheeler's response to "reassure" us.

net-neutrality-infographic"What is Net Neutrality?" infographic.

We felt that we should give readers a decisive guide to voicing views and making a difference. Reddit has good recommendations from people who are, and were, involved in the government. Their insight is invaluable to those wanting to do something helpful. Some of the basics are calling the FCC, contacting your Congress and Senate Representatives (they work for you, so use them), and a few other ways to get your voice heard. When reaching out to representatives, one of the most important things to remember is to be polite, professional, and friendly so that you are taken seriously; the people answering the phones are likely interns of some variety -- they'll mark your comment down, ask your name and zip, and then hang up. No need for aggression. Short of money, the means through which most lobbyists get their way is because there is not a big enough outcry from the public to counter them, or those who do complain aren't taken seriously because of how they object.

If you've followed our coverage of net neutrality proceedings in the US, you'll know that there's been a fierce emboldening in the US Government's enablement of a class-based internet. AT&T's patent-pending approach to deploying a micro-transaction-esque content delivery hierarchy for streamed video and gaming content is starting to look a lot scarier right now.

net-neutrality-comicImage Source: CFC Oklahoma.

After the FCC's proposal to allow ISPs the dictation of "normal speed" and "low-speed" traffic in the form of extorting content providers (Netflix, YouTube), internet backlash has prompted a disingenuous addendum by the Commission. Federal Communications Commission Chariman and mendacious troglodytic neophyte of technology Tom Wheeler is reported to have added to his plan:

After our earlier posting about Google's intentions to move to several large cities in North Carolina, we noted that the ball would now be in the court of the local officials to make progress on Google's demands. Google requires certain infrastructure and licensing to be in place before deploying its Fiber network to new regions and has a strict "checklist" that towns must complete before the company will proceed.

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In an official statement today, the Town of Cary announced that it has unanimously agreed to Google's fiber hut licensing and leasing terms; this agreement will enable Google to make use of upwards of five fiber huts for light relay and transfer stations, which would effectively propagate optical signals to business and residential buildings. In speaking with Cary officials, we learned that the Town would lease the property, but Google would own the hut and its included equipment.

Two things are going to be happening this year for the Federal Communications Commission (FCC) that will directly affect the internet and its present management. The first is the upcoming preliminary vote on the revamped rules of “net neutrality” on May 15th; the second has to do with the merger between Comcast and Time Warner Cable, which would give a 40% userbase share to an ISP that already has a history of throttling users and businesses.

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Game industry visionary John Carmack, one of the founding developers of id Software, recent departed ZeniMax to work for Oculus VR on the Rift and other technology. Carmack's primary stated reason for his departure was a lack of support and interest on part of Zenimax in virtual reality technology. Last week, ZeniMax alleged that Carmack brought over internally-developed tech to the rising virtual reality giant, Oculus VR, recently acquired by Facebook.

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Finally, a game industry analysis has been published that includes digital sales and transactions. The industry has endured countless misrepresentative reports that only accounted for physical product sales (which are, quite obviously, down considerably with the evolution of that new-fangled "Internet" thing—we really need to get one of those "websites").

games-industry-revenueFrom our previous article, "The $60 Game is Just the Start," sources include the ESA, Reuters, and VG Sales.

The NPD Group has released its latest Games Market Dynamics (US edition) report, emphasizing a total of $2.87 billion in spending from US gamers in Q3 2012; of the $2.87B reported, a total of $1.4B was diverted toward digital purchases and game subscriptions or DLC transactions. Physical products are still clinging for life, though, and brought in $1.07B in spending; used games and rentals made up the remaining $399 million. At the time of writing, we are unsure if this data includes Steam's sales metrics, though we have reached out to the NPD Group for comment. (Update: NPD notes that Steam does not release official sales details, so they have estimated for digital consumption through Steam).

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