Network Gaming Biggest Challenge

The Economist takes a look at the gaming industry, the “rare bright spot in the gloomy technology industry.” Besides the physical consoles market, the biggest challenge is in moving to the network gaming arena, the online gaming, so to speak. Sony’s margin on its “EverQuest” online subscription gaming service is about 65-70 percent. So addicted are the subscribers that almost none stopped playing when the subscription was raised from $10, according to the story.

However, slower broadband adoption is hindering the progress. “The lack of widespread broadband means that most observers do not expect a boom in online gaming until the next console cycle, starting in 2005.”