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Games-on-demand to get big boost

The number of U.S. broadband households subscribing to games-on-demand services will grow to more than two million by the end of 2007, says a new report from Parks Associates, a Dallas-based market research firm.

This market, with approximately 100,000 subscribers at year-end 2003, will grow with the support of game publishers and both facility-based and non-facility-based broadband service providers, the report predicts. Several broadband service providers have already forged partnerships with games-on-demand service providers following the early success of services that allow users to stream or download games.

“Although most games-on-demand services offer small-footprint Internet games and back-catalog retail PC games, the quantity and quality of these games are improving,” said Yuanzhe (Michael) Cai, research analyst with Parks Associates. “In 2004, more facility-based broadband service providers will launch games-on-demand services, seeking to leverage their subscriber base, increase the stickiness of broadband services, and generate additional service revenues.”

<>The report—called Entertainment-on-Demand: Online Gaming Services— gathers data from three large-scale consumer surveys and compiles and analyzes consumer interest and preferences. In addition, the report examines the potential opportunities and threats of gaming-on-demand services to different players in the gaming industry value chain. It provides detailed information on the major companies enabling gaming-on-demand services.

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