|CYOP Systems, an online skill-based video gaming provider, believes the market potential is yet to be tapped by operators.|
Sourcing data from DFC Intelligence, CYOP claims, the worldwide market for video games and interactive entertainment will grow from US$23.2 billion in 2003 to US$33.4 billion in 2008, with revenues from the videogame industry bypassing the music industry by 2009.
While, the above figures include largely the offline gaming market, Themis Group, a research firm estimates the online games sector to touch US$1.3 billion by the end of 2004, and expected to exceed US$5.5 billion by 2008, with more than 114 million online gamers by 2006.
Such estimates for skill video by analyst firms, will translate to huge market opportunity, says CYOPS. Yahoo.com, for instance boasts of tens of thousands of players at any given time on the pool game alone.
CYOP, which operates Skillarcade.com, estimates that today a skill gaming company with just 5 percent market share could achieve gross revenues of up to US$65 million.
The Company's licensed tournament systems include an online financial transaction network supporting a community of online gamers who compete in skill games such as puzzle, board, trivia, learning games, action Games, strategy, driving, racing and adventure to win each other’s money. The basic model for business is based on charging a micro-payment for each video game played.
‘Play your favorite game on the Web. Play that game against someone thousands of miles away. Play that same person for money. This type of gaming is expected to dominate the future and create an entirely new industry overtaking Internet gambling’s dominant position in North America,’ says Patrick Smyth, President of CYOP.