Thoughts on Cloud-based Gaming 0

An increasing number of devices are becoming connected. CEA estimates some 350 million connected devices will sell in 2012. At the same time, broadband is becoming more pervasive.  in 2000 only about four percent of U.S. households had broadband connectivity.  Today, the bulk of homes with Internet access have broadband.

With these two trends squarely footed, expect to see a host of related services launch that take advantage of the new found connectivity on these devices and the omnipresence of the Internet .  One area many believe is ripe for competition (and the innovator’s dilemma) is the video game segment.  According to CEA Research, about 52 percent of all U.S. households have at least one game console so there is very broad adoption across households. OnLive was one of the pioneers in the cloud-delivered gaming space and others like LG, AT&T, Verizon, and Time Warner Cable are preparing to make a push into the service area.

Clear Sign Video Game Demographic is Aging 0

It should come as no surprise that in-game product placement is growing (remember Obama was the first presidential candidate to use in-game advertising/placement). Gaming has grown into a major media source and perhaps it is more surprising that in-game placement is more pronounced.  However, a note from this portfolio.com article on game consoles and advertising also tells another important video game evolution. Michael del Castillo writes,

 One of the more successful examples of such pairing of corporations with games  is Jeep and Call of Duty. The pairing is twofold. An  actual Jeep Wrangler called Call of Duty: Modern Warfare 3 Edition and a virtual  Jeep Wrangler in the game. While on the prowl for bad guys, one of the 20 or so  vehicles you can “borrow” is such a Jeep. The “elegant” part of this endorsement  is that not just anyone can access the vehicle. It has to be unlocked, and  figuring out the secret to doing so gives game players a sense of exclusivity.

If a vehicle manufacturer is finding gaming audience an appropriate target audience, it suggests the gaming demographic is getting older.

Most interesting quote from the article:

“The [Xbox] platform has shifted from 10 years ago, when it was 80 percent game  play, to now when it’s about 40 percent game play,” said Jeff Plaisted, director  of Microsoft’s mobile advertising sales and strategy.

Read more:  http://www.portfolio.com/views/blogs/the-tech-observer/2011/10/28/xbox-as-a-marketing-tool#ixzz1ctLBlSXV