Top 10 -> Top 9

Just one day after I printed a rough ‘top 10‘ list of casual game portals, the top 10 has become the top 9, as Real Networks (i.e. RealArcade) has acquired Zylom. Zylom catered particularly to the European market, with localized versions of most casual games. Thanks to A Shareware Life for the original news.

Interesting quote from the article:

Michael Schutzler, vice president of RealNetworks global gaming operations, estimates that the casual gaming market is worth around $2bn to $3bn globally compared to the $25bn total games market.

That’s a much higher number than I’ve ever seen anybody else claim (typically, the estimates are $80-400 million). I suspect he’s including the entire mobile business, as well as other sectors of the business not typically lumped in with casual PC games.

The article states that Zylom has $8 million in annual revenues, and RealArcade had $14.7 million in revenues last quarter. Let’s annualize the latter figure to $60 million. So, the #1 portal has $60 million in revenues, and, let’s say that Zylom’s $8 million put it at #6 or so (lower than the estimate from yesterday, but that lumped AOL, Pogo, and MSN together).

One could make a reasonable inference that Portals 2-5 do about $20 million each, and 7-10 do about $5 million each, putting the annual revenues for the top 10 portals at about $170 million. Add in all the smaller fry below #10, and you probably get to about $200 million in annual revenue, currently, for the casual games biz (narrowly defined as downloadable PC games, excluding mobile etc).

$200 million sounds pretty reasonable to me, and roughly bisects the typical $80-$400 million range one usually hears.

3 Responses to “Top 10 -> Top 9”

  1. Game Tycoon»Blog Archive » Articles of Interest Says:

    […] Guesstimate: downloadable PC games generate ~$200M annually. […]

  2. Make It Big In Games » Blog Archive » How Much Money Can Indie Games Make, Part I Says:

    […] Let’s start at the top, since that is the easiest place to find data. Go to Game Sales Charts to find out actual sales data from Real Arcade, one of the largest on-line game sales portals. (another good thing about Real is that they are a public company, so they frequently give actual sales numbers for the entire portal, so you can make assumptions about the total size of the casual game market. Phil Steinmeyer has recently taken a good shot at doing just this, check it out). […]

  3. PhilSteinmeyer.com » Blog Archive » U.S. Casual Gaming - only $52 million? Says:

    […] But they also estimate 2005 sales at casual gaming sites (Pogo, Real, etc) at only $52 million in 2005. That seems VERY low to me. I had done a seat of the pants estimate of the biz at about $200 million a few months ago. That was based heavily on Real’s publicly reported stats, and some extrapolation from that to the whole industry. […]

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