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MMO Subscriptions Down In 2010, Shift Towards Microtransactions In Progress

According to Screen Digest, subscriber revenues for PC MMOs and multiplayer online games in the U.S. and Europe went down during 2010, marking a shift towards microtransactions and away from subscriptions. Subscription revenue totaled $1.58 billion in 2010, down five percent from $1.66 billion in 2009; that year was ten percent stronger than the year previous and 2008 had seen 21.6 percent growth.

“The 2010 decline in subscription revenue – the first annual contraction experienced by the market since our coverage of this segment started in 2002 – represents an inflection point for the industry,” said Piers Harding-Rolls, senior analyst and head of games at Screen Digest.

Microtransactions, totaled $1.13 billion in 2010 or 24.2 percent up from $909 million in 2009. Overall, the MMOG/MOG market accounted for a 9.6 percent share of U.S. and European spending on all games content in 2010.

“This more than compensated for the decline in the subscription area and caused total Western MMOG/MOG market revenue – both subscriptions and microtransactions – to rise to $2.7 billion in 2010, up 5.3 percent from $2.57 billion in 2009,” said Harding-Rolls. “Microtransaction revenue will continue to rise during the following years, expanding to $1.8 billion in 2015. This will drive up combined MMOG/MOG revenue in North America and Europe to $3.13 billion in 2015.”