IDC reports that the Philippines leads in Subscription Revenue Growth in the ASEAN Online Gaming Market

June 20, 2006

Manila, June 20, 2006 – IDC's latest study on the online gaming market in ASEAN region, and specifically consisting of Malaysia, Philippines, Singapore and Thailand, revealed that the Philippines totaled US$15.56 million in subscription revenue in 2005, growing by approximately 72% over 2004, and leading surveyed countries in percentage subscription revenue growth. The increasing popularity of casual games has given the market another new area to spur growth. While Massively Multiplayer Online Role Playing Games ( MMORPGs) have been the mainstream game genre for the last few years, the space has begun to show early signs of maturity and as such, online gaming providers have been quick to respond and address any potential saturation issues by varying game offerings to include more casual games in their product line.

"In the early days, MMORPG was the sole genre that derived revenue from content generating subscriptions. Casual online games, on the other hand, were either free or sourced revenue from advertising and sponsorships. However we've begun to see some concrete shifts towards alternative revenue streams. These have begun with the availability of in-game or virtual item transactions. Though purchasing of these digital items will remain at an embryonic stage for the short term, this will begin to serve as a supplementary revenue source, especially for the more established providers who possess larger user bases,” said Manuel Ravago, Research Manager, IDC Philippines. “In addition to new games, introducing new virtual items such as virtual-money, clothes, weapons, and even virtual backgrounds in limited quantities also helps in maintaining interest of gamers. To a degree, collecting rare virtual items allows a gamer to 'show off' to his online peers, establishing 'unique personal identity' within the gaming community."

Moreover, with the emergence of casual games, gamers have also begun shifting attention from the MMORPG to the casual game genre. Likewise, the entry of new gaming service providers into the local market, with their varied game offerings, along with the continuing decrease in broadband prices - should further maintain market interests and fuel growth of a still untapped industry.

In 2005, the Philippines held a 1.1% market share of the APEJ region's total subscription revenue of US$1.39 billion. The region's market is expected to grow at a compound annual growth rate of 21% from 2006 to 2010 reaching US$3.6 billion by 2010. The growth is driven by the rapidly increasing numbers of varied players in the online gamers ecosystem. Telecommunications service providers, online game developers, and even traditional information and communication technology (ICT) vendors are showing growing interest in this fast-emerging market. The region's market is expected to breach the US$2 billion mark by 2007, with the entry of several new countries into the region's online gaming radar, albeit the current lack of commercial values in India, Indonesia, and Vietnam.

For more information about purchasing the research, please contact Hazmi at +603-2169-7526 or hyusof@idc.com. For press enquiries, please contact Stephen Chong at +603-2169-7521 or ckchong@idc.com.

Contact

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