It’s a good time to be making online games, and it looks to be getting better. Pearl Research reports that China’s online game market grew over 20 percent to 5 billion this year, and it should grow to 6 billion by 2015.
The social game market is also looking good. Market research firm Parks Associates reports that virtual good and microtransactions are making these games more profitable than the core gaming market.
“Gaming on social networks has quickly become the most visible category of online games,” said Pietro Macchiarella, a research analyst at Parks Associates. “Right now, more than 250 million people play games like Zynga’s CityVille and FarmVille on Facebook every month, and both game developers and marketers have taken notice. Big brands such as McDonald’s and 7-Eleven have carried out cross-promotions with existing social games.”
Profits from both social games and MMOs come from similar ways. Chinese MMOs are low-cost uses for time, costing an average of $.05 an hour. Dropping the subscription cost for microtransaction and virtual goods increases the appeal of the vast MMO market.
However, this isn’t the only way to make a game profitable. “Advertising innovations such as branded games, sponsored items, communities, and ‘advertainment’ that enhance, rather than interrupt, a gamer’s experience will also generate new sources of revenues for game publishers,” Macchiarella said.
Regardless of how a company decides to sell their game, market research shows massive fortunes.
