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As Economy Sours, Gamers Turn To Free Online Alternatives

Posted on: Thursday, 29 January 2009, 16:15 CST

American video game players seeking solace during a rough economy are increasingly turning toward free, ad-supported online games.

The number of such players grew to 86 million in 2008, a 27 percent increase from the previous year, according to figures released on Wednesday by comScore.
 
Furthermore, the amount of time players spent with the online games surged by 42 percent, bringing to 4.9 percent the total amount of all Internet activities related to online games.

"It appears that online, ad-supported gaming is one of the activities that has benefited during this economic downturn," comScore director of gaming solutions Edward Hunter told AFP.

"Not only have consumers turned to outlets such as gaming to take their minds off the economy, but as they curtail their discretionary gaming-related purchases they are turning to free alternatives."

Yahoo! Games was the most visited Web site in the category, with 19.5 million visits by U.S. players, a 20 percent increase over last year. California-based Electronic Arts (EA) was the second most popular site, with 15.4 million visits and a 21 percent increase from last year. Coming in third was Disney Games, with visits growing 13 percent to 13.4 million.

"Casual games are providing a really good alternative source of entertainment that is fun and free for people in a tough economic environment," Michelle Weaver, chief operating officer of EA's POGO game website, told AFP.

"We are seeing really strong growth. This was a pretty significant jump for the business."

According to an AFP report, roughly 37 percent of the time players spent online was at POGO, a social networking Web site that offers more than 100 word games, puzzles, board and other games.

The trend has made the display advertising market at gaming websites one of the rare bright spots in a troubled economy, with a 29 percent spike in the number of times such ads are viewed, according to comScore.

"The growth in display ads in the online gaming category not only underscores the assertion that gamers are increasingly accepting of ad-supported games, but also that the advertising community is recognizing the value of this highly engaged audience," Hunter said.

Free computer-based games have long been popular in South Korea, but are now taking hold in a U.S. market long dominated by videogames sold on packaged disks or via online subscriptions.

Nexon, South Korea’s free-to-play computer game giant, made its debut in the U.S. video game arena last year with its shooter-title "Combat Arms". More than one million people have registered to play the game in the first five months since its debut.

The Seoul-based game maker generates its revenue from players that purchase animated outfits, helmets, emblems or other virtual products to customize their game characters.  The company is now considering whether to  incorporate advertising.

"Free-to-play is starting to catch on fast," Min Kim, a Nexon America spokesman, told the AFP.

"As more people get into it, word of mouth is spreading. We are carving a space out for ourselves."

Electronic Arts has also invested in free play with its "Battlefield Heroes" war game, which will be supported by in-game transactions instead of up-front purchases.

Personal computers have become a natural gaming forum as people spend more time online at social websites such as MySpace, Facebook and YouTube.

Both startups and leading establishment game makers, such as Sony, are increasingly moving into the free online gaming market.  The business model is particularly inviting in the U.S. market, where packaged games sell for $60 but game makers must then compete for players loyal to different consoles.

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On the Net:

• comScore
• Pogo
• Nexon
• Electronic Arts

Source: redOrbit Staff & Wire Reports

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