Moore's Law and Electronic Games
How technology advance will take electronic games everywhere (2004)
Moore's Law observes that the transistor density of a silicon chip will double every two years, allowing a corresponding increase in processor speed. The continuation of Moore's Law through 2010 implies significant more powerful processors by 2010. This in turn will enable the electronic game to become yet more pervasive.
According to this new study from Deloitte Research, unrelenting progress in processing power, network bandwidth and storage capacity will enable the installed based of electronic games devices, even excluding PCs, to balloon from 415 million now to 2.6 billion worldwide by 2010.
It is expected that 450 million homes worldwide will have broadband connections by 2010, and over one billion multimedia mobile phones that can support paid-for electronic games. Storage capacity will increase to 1,000 gigabytes of disk storage in a typical home PC by 2010, enabling games to be longer and more complex with enhanced visual detail, sound effects and music.
In addition, these advances will expand audience reach beyond the traditional electronic game markets to create new revenue opportunities in related sectors such as:
- Advertising Games publishers, looking to recoup spiraling development costs, are more receptive to product advertising in games. In-game advertising will become commonplace, particularly as technology improvements and shifting demographics make in-game product ads more appealing.
- Wireless communications Mobile operators will be the pre-dominant channel for selling and distributing phone-based games, with only a small number sold in retail stores. More advanced networks, prevalent by 2010, will provide higher transfer rates, enabling downloaded games to be more complex and sophisticated.
- Entertainment Electronic games represent an important new merchandising category, with cross-licensing between films and electronic games providing a major source of revenue. Music companies will recognize revenue opportunities, as music becomes a more essential part of the gaming experience. Video games have inspired entire lines of toys and action figures, allowing toys manufacturers to capitalize on cross-licensing opportunities.
Other sectors benefiting from this advance in technology include gaming publishers, fixed-line operators, the music industry and toy manufacturers. Learn more from our press release or read the full report in PDF file attachment below.
About Deloitte Research
Operating through a network of research professionals, senior consulting and accounting practitioners, academics and technology partners, Deloitte Research delivers innovative, practical insights companies can use to improve their overall business performance. Through its in-depth publications, surveys, reports and commentary, Deloitte Research identifies, analyzes and explains the major issues confronting businesses today and shaping tomorrow's marketplace.
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