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Massively Multiplayer Online Games Explosive Growth
Posted By Barry Ritholtz On June 2, 2005 @ 6:35 am In Finance,Music,Web/Tech | Comments Disabled
It is part of a general trend of Americans listening to less recorded music .
Now, the Recording Industry has another digital nightmare to begin worrying about: Massively Multi-player Online Games.
As the chart below (courtesy of mmogchart.com ) reveals, subscriber growth in this area is simply explosive:
Enormous Growth of MMOG
click for larger graphic
courtesy of MMOGChart.com 
From almost zero participants in 1998, MMOG growth picked up speed in 2002, and really accelerated over the past two years.
MMOGChart.com observes that "immediately obvious from the charts is that MMOG populations tend to follow hyperbolic or parabolic curves. They also found that there are now well over 4 million  subscribers to these online gaming communities.
Another Long Tail  Distribution?
click for larger graphics
courtesy of MMOGChart.com 
Not coincidentally, around the same time as MMOG playing took off, CD sales began to falter.
Its yet another example of a new internet based digital media successfully competing with an older media format.
And, this a zero-sum game: consumers have finite time, money and attention spans. As this community increases, it will continue to eat into music sales.
UPDATE JUNE 3, 2005 8:12 am
Chris Anderson  informs us that: "not all exponentials are long tails. I suspect that this is simply a case of network effects (and Metcalfe’s law in particular) at work, which is a different phenomena."
We stand corrected.
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2005/06/massively-multiplayer-online-games-explosive-growth/
URLs in this post:
 Video Games: http://bigpicture.typepad.com/comments/2005/02/video_game_indu.html
 DVDs were cannibalizing CD: http://bigpicture.typepad.com/comments/2004/12/dvds_continue_t.html
 less recorded music: http://bigpicture.typepad.com/comments/2005/03/americans_tunin.html
 mmogchart.com: http://www.mmogchart.com/
 Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/mmog_subs__21524_image001.gif
 MMOGChart.com: http://www.mmogchart.com/Chart4.html
 4 million: http://www.mmogchart.com/Chart5.html
 Long Tail: http://longtail.typepad.com/
 Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/long_tail__12473_image001.gif
 Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/long_tail_distribution__22082_image001.gif
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