Recession could mean more World of Warcraft (WoW) fans
AS recession ripples around the world, online games companies hope the freshly-unemployed will spend more time on cheap entertainment.
Online games, which allow thousands of players to compete simultaneously over the internet, are a dominant form of video gaming in
China, South Korea and other parts of Asia.
Blockbusters such as World of Warcraft (Currency: wow gold ) and the Lineage series have attracted millions of users across the region.
Analysts estimate the online game market at about a fifth of the size of the video console game market. Total PC game revenue is expected to reach $US19 billion ($30.15 billion) by 2013, according to entertainment industry research DFC Intelligence.
Why now?
Easy broadband access and a game culture built around cyber cafes helped PC gaming prosper in Asia.
In the West, however, web-based games have failed to duplicate their Asian success, largely due to lower broadband penetration and cultural differences.
Now the spreading economic downturn could do what years of marketing couldn’t, developers and publishers said.
“During economic downturns, people will look for the highest return on their entertainment dollar. Online games provide an immersive virtual world for people to escape the daily struggles,” said Lan Hoang, CEO of Aeria Games & Entertainment, which offers Asian games in the US and European markets.
Why WoW?
Many online games are offered free, generating revenue from micro-transactions such as character customization and game enhancement. Others, such as world of warcraft ( Buy wow gold ), charge monthly fees of around $30.
Analysts say online games are not only recession-proof but can even get a boost from an economic slump, because people stay longer at home and have more time on their hands to play.
US game sites such as pogo.com, as well as subscription games are already seeing robust traffic, said Colin Sebastian, an analyst at Lazard Capital Markets.
“We think it’s a robust growth category in terms of video games and Internet media,” he said.
The so-called “massively multiplayer online role-playing game (MMORPG)” typically takes months of extensive time investment, as a user - say, a warrior or sorcerer in the fantasy world - builds skills and takes on adversaries in a series of missions.
Die-hard fans
Online gamer’s profiles are different from buyers of Nintendo’s Wii consoles or DS handheld players, which have proved a roaring success with easy-to-play games for a broader population.
“I don’t think (online multiplayer games) get impacted at all, because people who play them are addicts,” said Michael Pachter, an analyst at Wedbush Morgan.
“Losing their jobs makes them more likely to play because they have more time to play.”
“These days more people stay late in the evening playing games,” said Jung, a manager at a crowded web cafe in downtown Seoul.
“I think they don’t have other places to go.”
In South Korea, online gaming quickly spread to become a social phenomenon in the early 2000s in the aftermath of the Asian financial crisis, which left many young men unemployed.