Free online games grow as economy worsens

Free is a very good price. With Americans tightening their belts, many have turned to free online games for amusement.

While others have seen online ad revenues slide, online gaming sites (not to be confused with online gambling sites) saw display advertising views spike 29% in November from a year earlier, according to a report released this morning by research firm ComScore. That's primarily because these sites saw more people coming to play their games. While overall Internet traffic grew 4% in December, the number of visitors to online gaming sites grew 27% from December 2007 to 86 million, ComScore said. They're also spending more time on the sites, up 42% per visitor.

"“It appears that online, ad-supported gaming is one of the activities that has benefited during this economic downturn,” said ComScore analyst Edward Hunter. “Not only have consumers turned to outlets such as gaming to take their minds off the economy, but as they curtail their discretionary gaming-related purchases they are turning to free alternatives.”

It's important to note that the survey does not include data from massively multiplayer online games such as EverQuest and World of Warcraft, both of which require monthly subscriptions to play.

The top free-to-play gaming sites that posted gains in December include:

• Yahoo Games +20%
• EA Online +21%
• Disney Games +13%
• WildTangent +74%
• Addicting Games +17%

Sadly, with more folks out of work, these sites could see continued growth in the coming months.

-- Alex Pham

Image: Addicting Games, a free-to-play game site owned by MTV Networks.  Credit: Addicting Games

Comments

[Cheap WoW Gold]

We have to be practical these days. Sometimes, it's much fun to enjoy things that come for free.

[Craig McDaniel]

I am the owner of Sweepstakes Today, www.sweepstakestoday.com. While we do not fall purely into the online gaming category, we do online advertising with online sweepstakes. The sponsors are well known named sponsors. Mostly Fortune 1,000 companies.

My growth rate has been higher than the companies you show. Mainly we cater to a older demographic base and average over $40 million dollars in prizes per day - (for 2008).

The point is I have found is that the net has proven to be a great platform to entertain and to giveaway prizes in supporting brands. Far better than any other media outlet there is.

[Jeff Mattas]

My company just launched a new free Flash gaming portal called Ponged.com (http://www.ponged.com), and discovered some pretty interesting things about the state of Flash gaming today.

During the initial content gathering process for Ponged, we focused on hand-picking free games that would appeal to a core gaming demographic more familiar with traditional console and PC retail gaming experiences.

We discovered a great variety of high-quality, free games that shattered many of our expectations of what the “casual" gaming space could offer. Many of the Flash games that we’re seeing developed now are not only bridging the gap between the “casual” and “hardcore” game players, but are consistently introducing new types of gameplay, taking artistic risks, and innovating in ways that are often avoided by commercial game publishers. The freedom that these indie game developers have to realize their creative visions has resulted in some pretty astounding games that, in some cases, give their closest retail counterparts a run for their money.

Personally, I’d agree that some of the “bump” being experienced by the free game space is due to current economic woes, but I can’t also help but notice that the overall quality of these free, “indie” titles is rising steadily.

[Edward Hunter]

There is certainly a lot to be said about the improved quality of Flash itself and the development polish we're really now starting to see. Additionally, game publishers are getting smart about how to deliver these games, in some cases bundling them in to adaptive containers that can monetize themselves on the fly, selecting first an ad sponsored model, or optionally running totally free under private sponsor.

We're also going to see a big uptake in more 'serious' online games as 3D in the browser continues to become more sophisticaed.

[Jeff Mattas]

Apologies for the broken site-link in my previous post. Here's a working link for those interested in checking out our site. (http://www.ponged.com/ )

[free games]

This article is so misleading... In my opinion the industry has actually been hit very hard particularly just after the study was done when it saw a HUGE decline in advertising revenue.

[Noam]

These are common seasonal changes and have nothing to do with the economy.

[WoWHunterGuide]

Online gamers multiply because online gaming is becoming more and more enjoyable. World of Warcraft is not free but it has millions of subscribers because it provides a virtual world where not everything is not perfect very much like the real world, but the chances you succeed are much higher than in the real world.

[Free Games]

It should be surprising though that game play rises as the economy tanks. People want the simple pleasures to take their mind off of some of the tough issues they're facing. Free online games are a perfect outlet to allow people to sort opf "escape" and think about something else for a while.

[tower defense]

I think game publishers are getting smart about how to deliver these games, in some cases bundling them in to adaptive containers that can monetize themselves on the fly, selecting first an ad sponsored model, or optionally running totally free under private sponsor.

[Design Your Own Tattoo]

I agree with most that's posted above. Gaming is just another way to escape real life. When things are going as bad as they are, who doesn't want to escape?

The danger I think is when you start to become too detached and can no longer function as a productive part of society.

[Oyun]

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[Internet Games]

This is really True and nice article from LA times.

Sravan
Internet Games

[Ben Gibson]

Makes sense for free games to flourish when people can't afford to buy retail games. Ad networks like mochiads also help to monetize free games and grow the industry.

[Virtual Office]

Personally, I’d agree that some of the “bump” being experienced by the free game space is due to current economic woes, but I can’t also help but notice that the overall quality of these free, “indie” titles is rising steadily.

[psp games]

i like free online games..but it aways so simple.not more tips.

[Grand Incentives]

Ya, I'd think anytime you have a recession then luxury items like $50+ video games are the first to be cut from the budget. But gamers must play so they flock online free games.

[Desi Games]

Its true. More people are spending time on the net playing games and on social networking sites now. Sites like Linkedin and Twitter are showing increasing traffic as more layoffs hits the market.

[free online games]

Really interesting article for me, I own games site too so this article was really good. I think users of this kind of sites will grow and grow and of course revenue of this kind of sites are HUGH, Thank you for your valuable information.

[Celtic Cross Tattoo Designs]

Ad-supported gaming will only continue to grow, I don't care what's happening with the economy. People love free, and the growth of better and better free content is a rising water that raises all ships.