IDC says Malaysia's online gaming market is worth US$3.49 million in subscription revenue in 2004

12 September, 2005

Kuala Lumpur, September 12, 2005 – As Malaysia's content market moves away from the infancy stage, users in the country will look towards a variety of different services, because no single application is likely to be decisive in increasing usage or uptake of broadband access. Online gaming represents just one of the many forms of entertainment consumers are interested in exploring further. IDC Malaysia's latest study entitled Online Gaming As Value-Added Content: What's Happening in Malaysia? presents both a supply and demand side look at the online gaming market in Malaysia.

"An online game is a game wherein at least one component is played via the Internet. In 2004, Malaysia's online gaming market was worth US$3.49 million in subscription revenue. The Malaysian market did achieve a 69% revenue growth over the previous year, driven by the conversion of more games from being a free trial model to a paid model," says Melissa Chong, Senior Analyst, Telecommunications Research, IDC Malaysia.

IDC's consumer end-user survey of urban Internet users reveals that the type of access (broadband versus narrowband) influences the game play experience, which persuades users to spend on content such as online gaming. On average, broadband users spend twice as much on online gaming than narrowband Internet access users," adds Ms. Chong.

IDC believes that within the next 1 to 1.5 years, more telecom service providers will expand their business development strategies to include more online gaming content, especially as the top 5 Internet access providers are starting to revamp their marketing and operations activities, with content being expected to be a major driver in the new initiative.

Further down the road, IDC anticipates telecom service providers to explore the possibility of dealing directly with game publishers and even become an online gaming service provider, particularly as the business case to offer cross-platform online gaming become more compelling.

For more information about this research, kindly contact Hazmi Yusof at 603-2169-7522 or hyusof@idc.com, or Stephen Chong at 603-2169-7521 or ckchong@idc.com.

Contact

Hazmi Yusof
Senior Account Manager
Tel: 603-2169-7526
Email: hyusof@idc.com

Chee-Kian Chong
Events & Marketing Executive
Tel: +603-2169-7521
Fax: +603-2163-5098
Email:ckchong@idc.com