Yuppie Gamers Team

Thursday, 12 March 2009

Videogames to boost Service Providers - CSMG Report

During this period, Telco business is struggling and the only innovation that have brought some fresh revenues to ISPs and Service Providers has been iPhone.
According to CSMG now looks like games can provide some new fresh opportunities to stagnant Telco market segment.
Please find some excerpts from CSMG Press Release

"Overland Park, KS – March 12, 2009 – CSMG, the strategy division of TMNG Global (NASDAQ: TMNG), a leading provider of management consulting services to the communications, media and entertainment industries, today released its report on the global video games market and its impact on mobile and fixed service providers, entitled: Playing Games: A Revolution In Interactive Entertainment.
Fueled by increased network access, faster broadband speeds, next-generation consoles and more capable mobile devices, the dramatic growth in the video games market presents tremendous opportunities for service providers to capture greater share of this market, according to CSMG.

The report finds that the global gaming industry is expected reach $40 billion in annual revenues by 2012. By comparison, U.S. gaming software sales reached $20 billion in 2008 from $9.4 billion in 2005. Mobile games represents the fastest growing segment with a 24.6% (CAGR) compound annual growth rate forecasted for 2007 through 2012. The average age of a gamer has increased to 33 years and female gamers now reach almost 50 percent across many types of games.

According to CSMG, service providers are well positioned to become a compelling digital distribution channel for video games given their existing assets. Carriers already have a scalable network infrastructure, established subscriber base, sophisticated billing systems and bundled product portfolios. Furthermore, service providers can leverage its network to offer value added services such as VoIP and IP chat to enhance the consumer experience and drive adoption.

The report is based on executive interviews with major service providers, gaming industry players and additional value chain participants as well as qualitative and quantitative strategic analysis of emerging trends and its impact on the gaming market.
To view the full report, visit www.csmg-global.com


  1. gamers (not just hard PC gamers, even plain vanilla PS3, Wii, etc..) are the fastest growing community in crunching ISP bandwidth (and for hard gamers, latency - Quake Arena ping someone?!? ;-) ). this has been true for the last 5 years or so, and will be probably true in the future because of the new live interaction platform (PS3 Home, Second Life, and so on) that will expand the use of on-line "gaming" in an exponential way (mmmhhhh... that's the real Red Shift ;-) )
    but... there is always a "but".... apart from very "niche" offerings, are gamers considered as valued customers, investing in marketing and so on?? not at all, at least here in Italy. ISPs are only targetting porn market (yes, even if they say "Nooooo, porn?!?!? In my fiber there is noooooooo porn"), some kind of streaming related to useless programming (Big Brother someone?!?!?), and some other services.
    so, business is struggling?? maybe that's because of ISP's myopia (large numeber of dioptre I would add...)


  2. interesting point Mike! i guess we should burn a specific post about Telcos real revenues vs. MMOG ( even tough WOW is a milestone stuck as example for future generations in such market segment )

  3. This is a good news. A very good connection for playing any online and Download Games. Hope ISP will do everything to give the best service possible.

  4. We can't deny the fact that gaming industry is continuously prospering. And with these situation, service providers would flourish also. As Video Games booms, surely these providers boom also.