In 2013, online content and services for Internet-connected game consoles will generate over $8 billion in global revenue for Microsoft, Sony, and Nintendo, the three console manufacturers, according to Connected Consoles: Games, Media, and Beyond. This new report from Parks Associates forecasts revenue streams from digital video distribution, downloadable games and content, virtual worlds and avatar-based microtransactions, multiplayer gaming services, and dynamic in-game advertising.

"Broadband connectivity, now a common feature for game consoles, is a key enabler for new business models," said Yuanzhe (Michael) Cai, Director of Broadband and Gaming, Parks Associates. "Among the different online revenue opportunities, digital video distribution and downloadable games and content are the most promising."

 The report further reveals that among the "big three" game console manufacturers, Microsoft currently dominates the online content and service market, but Sony and Nintendo are gaining ground as they ramp up their base of connected customers and diversify monetization methods.

    "Led by Microsoft’s success in Xbox Live, all three console makers are dreaming up many innovative offerings to entice console households to get connected and spend more money," Cai said.

Connected Consoles: Games, Media, and Beyond profiles new console-related capabilities, services, and business models, including online multiplayer gaming, virtual worlds, dynamic in-game advertising, and digital delivery. It also forecasts revenue growth and market share and examines the impact of game consoles on other industries.

    Yuanzhe (Michael) Cai is moderating the session "Games of Tomorrow and the Future of MMOGs," September 26 at Digital Media Wire’s NY Games Conference.