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Is Social Gaming Slowing

Monday May 21, 2012 : IS THE SOCIAL GAMING PHENOMENON SLOWING?
 
Independent research suggests slower growth now evident
 
In a week where the IPO of social gaming giant Facebook sent investors into a buying frenzy, and new social gaming ventures proliferated, a US independent research organisation sounded a sobering note, claiming that growth in the sector is "slowing considerably".
 
Perhaps triggered by the increasing focus on social gaming, the news surfaced in a press release dated May 10 from New York-based Frank N. Magid Associates, which reported on a study it had conducted in late March of 2012.
 
The research found social network gaming user growth has slowed in the United States. About two in five (38 percent) social network users, up slightly from 36 percent in 2011, said they regularly play games on social networks.
 
"Social network gaming has decreased among its primary demographic, females age 12-44, with less than 43 percent of users age 12-17 (down from 54 percent in 2011) and about 36 percent of users 25-44 (down from 40 percent in 2011) reporting playing on a weekly basis," the report reveals.
 
The upside is that there have been substantial increases in older age groups playing social games online, including males age 45-54 (up 15 percent from 2011) and 55-64 (up 9 percent from 2011), and females 45-54 (up 9 percent from 2011) and 55-64 (up 10 percent from 2011).
 
The Magid study also reports that consumers playing social network games say they will reduce the amount of money they spend on such games over the next 12 months. The average social network gamer who spends money on these games indicates that they are spending $51 vs. $78 last year on average.
 
This year 34 percent of gamers say they are planning to spend less on social games in the next year vs. 22 percent who say they will spend more.
 
Consumers who play games on video game consoles indicate they expect to increase their spending on console games. One area expected to see an increase in spending in particular is Downloadable Content (DLC) for gaming consoles.
 
A third of console gamers (33 percent) say they have bought DLC in the past with the average DLC consumer currently spending about $50 per year. Spending is expected to grow in the next year to 45 percent of gamers. This percentage includes those individuals who have not bought DLC in the past but plan on buying in the near future.
 
In order to buy DLC a gamer needs to have a console that is connected to the Internet. More than two-thirds of Xbox and PlayStation gamers in the U.S. go online multiple times a week using their console. Non-gaming activities now account for about a third of all time spent online on a connected console among those gamers. According to console gamers, online access is driving more spending and playing on their console.
 
Online play has shown no signs of slowing; in fact online console player penetration is likely to grow by 10 percent or more next year as more console players are connecting for the first time.
 
Additionally, consumers clearly want cross-platform connectivity, with more than half of Xbox and PS3 owners wanting access to their game networks via their mobile phones.

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Interwetten 2016 Earnings Results - Privately-owned online sports betting operator Interwetten delivered robust full year results for the 2016 fiscal period, in which the company has almost achieved doubling its revenues over the past four years, success it attributes to its in-house developed platform

EU Online Gambling Tax Harmoney Dead - Tax expert says European Court of Justice Attorney General's opinion on UK-Gibraltar litigation signals that EU courts are happy for individual member states to impose their own laws on online gambling.

Jack Lam Facing Big Fines in the Philippines - It's going to be costly for Macau online gambling and junket tycoon Jack Lam to return to the Philippines following his rather hurried departure last year with allegations of economic sabotage, bribery and tax evasion swirling around him.

Walter Merricks Term As Gambing Commissioner Extended - The UK Government has extended Walter Merricks’ term as Commissioner of the Gambling Commission for a further year, ending December 31, 2017.

Loot’enKhamun Pays $3.8 Million Jackpot - A London-based construction worker’s year got off to a great start when he hit the Loot’enKhamun jackpot at bwin casino.

PlaySugarHouse To Carry Konami Content - Content provider Konami will provide its Gypsy Fire and Fortune Stacks slot games to Rush Street Interactive-operated PlaySugarHouse.com on an exclusive basis in the New Jersey real-money online and mobile wagering market.

ITF TERMINATES BETWAY SPONSORSHIP DEAL - The International Tennis Federation (ITF) has reportedly terminated Betway’s three-year sponsorship partnership as an extension to their anti-match fixing and sports integrity policy.

GSA To Launch European division - The expansion enables the GSA to better focus on the regional needs of its members outside of North America and underscores its recognition and commitment to growing European membership.

Paddy Power Trading Update - Company prevails despite adverse sports and US election results; Trump success cost the group GBP 5 million, whilst punter successes took another GBP 40 million in Q4-2016.

Tabcorp SunBets project - The details were revealed this week in an IT News article quoting Tabcorp's chief information officer, Kim Wenn, who described the SunBets project as Tabcorp's biggest global venture yet.

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