JupiterResearch announced that the next generation of Internet connected game console revenues will grow from roughly $800 mln in 2008 to nearly $2 bln in 2011. Industry console revenue growth will reach a high of $12.2 bln in 2007 when new platform sales are strongest. Then in 2008, the battle for the living room will begin in earnest with significant revenues coming from the connected console. At this time, one in ten households in the US will have a connected game console, and by 2011, this percentage will double.
Driving the adoption of greater console usage by more household members will be a key factor to the success of the business. In 2008, more than 50% of US households will have broadband Internet access and nearly 35% will have a home network. As the industry shifts to digital distribution especially for casual games and other content, it will attract an estimated 24 mln households in the US to get connected. That will contribute to the revenue growth from $800 mln to nearly $2 bln in 2011.