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Report: Subscription gaming declining, micro-transactions climbing

microtransactions

According to a report by research firm Parks Associates, subscription models for online games are on the wane.

As reported by IndustryGamers, the report - entitled "Online Gaming: Global Outlook" - notes that virtual items and micro-transactions are becoming an increasingly important part of the online pie, with an expected revenue of $6 billion worldwide by 2015.

"Gamers are investing real money in virtual items in Farmville, World of Warcraft, and other online games, to the point they are filing lawsuits to establish 'ownership' of these virtual goods," said Pietro Macchiarella, research analyst, Parks Associates.

"The enormous player base, availability on multiple devices, and the introduction of instruments such as Facebook Credits contribute to growing revenues."

The report states that 19 perdcent of US gamers spend money on in-game virtual items.

At the same time, subscriptions to online game services have decreased from 35 percent in 2008 to 28 percent in 2010.

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Patrick Garratt avatar

Patrick Garratt

Founder & Publisher (Former)

Patrick Garratt is a games media legend - and not just by reputation. He was named as such in the UK's 'Games Media Awards', the equivalent of a lifetime achievement award. After garnering experience on countless gaming magazines, he joined Eurogamer and later split from that brand to create VG247, putting the site on the map with fast, 24-hour a day coverage, and assembling the site's earliest editorial teams. He retired from VG247, and the games industry, in 2017.

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