According to predictions in eMarketer's new report, China Online Overview, the country's online population is growing 30% a year, and will soon pass the US to have the most Internet users in the world. China also has plenty of room to grow online. Since only 10.5% of Chinese used the Internet in 2006, according to the China Internet Network Information Center (CNNIC), eMarketer expects the number of Chinese online to reach 245.5 million by 2012. Two-thirds of Chinese Internet users had broadband service in 2006.

http://www.emarketer.com/Articles/Print.aspx?id=1005190&src=print_article_graybar_article&xsrc=print1_articlex

José María Aranda | Sierra Online | PH: 310.431.4736 | FX: 310.431.2736

The future looks bright for PC games.

Teen Spending and Web Usage Up

JULY 11, 2007

And they consider PCs more important than TV.

Spending on and by teenagers will reach $208.7 billion in 2011, up from $189.7 billion in 2006, according to Packaged Facts' "The Teens Market in the US" report. The spending increase is expected despite an estimated 3% decline in the 12-to-17-year-old population by 2011.

Teen spending will grow 3.5% annually to $91.1 billion in 2011, from $79.7 billion in 2006. Family spending on teens during the same period will grow 7% to $117.6 billion in 2011, from $110 billion in 2006.

The study estimates the current number of teens in the US at 25.6 million.

The study also contained an analysis of Simmons Market Research Bureau data, which found slightly over a quarter of all teens surveyed had placed an online order in the previous three months.

More than half of teen respondents said the Internet had changed the way they spent their free time. Nearly one out of three said the Internet was their main source of entertainment.

Don Montuori of Packaged Facts said, "Teens living in 2007 have never known a world without personal computers and the Internet. Teens are in the vanguard of the digital revolution in the media and marketing worlds, and they're helping to change the way media, marketing and advertising executives approach the American consumer."

Underscoring the central place of the PC in teen lives, a March 2007 study by the Business Software Alliance and Harris Interactive found that 41% of teens considered the home computer the most important consumer electronic device used on a regular basis. TV was a distant also-ran by comparison, with only 8% of teens naming it as the most important consumer electronic device.

José María Aranda | Sierra Online | PH: 310.431.4736 | FX: 310.431.2736

Disney plans to switch online gaming site Toontown from a subscription model to an ad-supported one, according to Mediaweek. Disney Online has been charging users $9.95/month to access unlimited game titles since it launched 4 years ago. The company is currently negotiating with advertisers and is already beta testing a free version of the site.

Sony announced it is officially lowering the price of its 60GB PlayStation 3 console from $599 to $499, in time for the stripped down E3 gaming convention in L.A. this week. Beginning in August, a new 80GB model will retail for $599, including a free copy of the hit racing game MotorStorm. The PS3, originally launched in November, was outsold 4 to 1 in May by Nintendo's Wii and almost 2 to 1 by Microsoft's Xbox 360 according to the NPD Group.

Twentieth Century Fox is getting into the swing of using web 2.0 techniques to promote The Simpsons Movie. Fox launched a feature on The Simpsons Movie site allowing users to create their own Simpsons avatar. The studio is sponsoring a user generated contest with USAToday.com in the 15 towns across the U.S. named Springfield to see which city gets to host the movie's premiere. A partnership with JetBlue also has Montgomery Burns taking over CEO David Neelesman's blog.

ONLINE GAMING SET TO SOAR

Electronic Arts' Director of E-Commerce John Burns looks to the future

Tuesday 10th July/...Within the next three years online gamers could be spending more than £2billion a year in pursuit of cyber-gaming pleasures, according to Electronic Arts’ director of E-Commerce, John Burns.

Europeans currently spend on average ten hours a week online – a total set to sky-rocket in the near future according to Burns. Speaking at a two-day conference examining ‘the challenges of online gaming’ staged in Brussels recently by ISFE (Interactive Software Federation of Europe), Burns laid out his vision for gaming’s online future.

“Not only is gaming a significant industry in size now but online gaming is an important step for us as an industry,” he explained. “Many people play online games and it is not just confined to a hard-core of gamers, it is very broad and widespread. There are many people playing online games of all ages, male and female.”

Burns told delegates that there are currently 100 million online games players globally – a total set to soar thanks to increasingly fast broadband connections installed in private homes.

“European broadband penetration is growing, from 2006 at around 35 per cent to over 45 per cent by 2012,” he said. “Household penetration of broadband is also exponential - and we are looking at that growing in Europe from 40 per cent now to over 60 per cent in 2012.

“Not only is online significant in scope now, but it is accelerating. We are only at the beginning of this curve - and we are also only at the beginning of this curve as far as consumers go. The projected spend of online gamers by 2010 is $4.4bn [£2.18bn].”

Gamers are playing more online titles for a number of reasons, but the main one according to Burns is the sense of community the medium offers. “Online games expand your world,” he said. “And players can replicate in a larger [online] world what they have in the off-line world.”

K2 NETWORK’S - SWORD OF THE NEW WORLD™: GRANADO ESPADA NOW LIVE

The Highly Anticipated Age of Exploration MMORPG Now Available For Download at www.swordofthenewworld.com

IRVINE, Calif. – (July 10, 2007) – K2 Network, Inc. (www.k2network.net), an online game publisher today announced that its epic Age of Exploration MMORPG Sword of the New World: Granado Espada will be available in download in North America and Europe this week. The game is available at www.swordofthenewworld.com.

“With its unique and compelling gameplay that caters to both the seasoned and novice MMORPG player, Sword of the New World fits into K2 Network’s unique vision of Gamers First”, said Grantley Day, Vice President of Product Development at K2 Network. “Sword of the New World is destined to become top of many players wish list in 2007.”

Sword of the New World: Granado Espada is an Age of Exploration fantasy MMORPG that is the first of its kind to include Multi Character Control. With a full spectrum of features including character customization, large-scale maps and breathtaking graphics, Sword of the New World has the ability to capture anyone’s heart. Taking place in the Age of Exploration when European colonists’ forayed into the new world, this detailed game is full of mystery and danger while players go on a hunt for treasure, adventure, and most importantly, fame.

Sword of the New World: Granado Espada is free to download at www.swordofthenewworld.com. Players have the following packages to choose from:

Pay2Play CD Networks Premium Package-$19.99
The official download partner for Sword of the New World: Granado Espada, CD Networks, offers a premium package with a one-time fee of $19.99 and includes a fast download of the client, an exclusive UPC character, 10,000 VIS (in-game currency) and the first month subscription fee included ($8.95 a month thereafter). This package also includes full game access, trading and auction support with no level cap. Players who already have the client downloaded and installed can also purchase this package without having to re-install the client. To sign up for this package visit www.swordofthenewworld.com.

Pay2Play Monthly Subscription Package-$8.95
Players who want the basic monthly subscription package can purchase it for an $8.95 monthly fee.
This package includes full game access, trading and auction support with no level cap and the ability to purchase in-game items. To sign up for this package visit www.swordofthenewworld.com.

Free2Play™
Players can download and play Sword of the New World: Granado Espada for free and play up to level 20. Players can continue playing for free indefinitely; however, will not gain experience points past level 20. To download the game visit www.swordofthenewworld.com.

For more information about Sword of the New World: Granado Espada please visit http://www.swordofthenewworld.com

José María Aranda | Sierra Online | PH: 310.431.4736 | FX: 310.431.2736

Report: Nintendo Wii Outsold PlayStation 3 6-to-1 in Japan Last Month

Tokyo - Nintendo's Wii video game console outsold rival Sony's PlayStation 3 by a 6-to-1 margin in Japan in June, Reuters reported, citing sales data compiled by Japan's Enterbrain magazine.

A total of 270,974 Wii consoles were sold in June, compared with 41,628 PlayStation 3 units and 17,616 units of Microsoft's Xbox 360.

The streak is ongoing for Nintendo, which beat the PlayStation 3's Japanese sales figures by 4-to-1 in April and 5-to-1 in May.

Sony, Nielsen Team to Measure Video Game Advertising

Foster City, Calif. - Sony Computer Entertainment America announced on Monday that it has partnered with ratings provider The Nielsen Company to develop a measurement system for game network advertising.

Under the agreement, SCEA will share game network traffic and other data from its PlayStation 3 and PlayStation Network, which Nielsen will use to create new measurements for calculating the reach, frequency and effectives of game network advertising.

Nielsen will then combine the SCEA data with its own game usage data, collected from more than 12,000 U.S. television households.

Research Reveals Gaming Provides Positive Experiences for Young People

http://www.gamespress.com/release.asp?c=t%0C%CBo%BD%01%B6j7%CAc%A1%DA

Italian Games Awards 2006

http://www.gamespress.com/release.asp?c=t%0C%CBo%BD%01%B6j7%CAc%AD%DC

Christian Game Developers Conference

http://www.gamespress.com/release.asp?c=t%0C%CBo%BD%01%B6j7%CAc%AC%D9

José María Aranda | Sierra Online | PH: 310.431.4736 | FX: 310.431.2736

2K Details First Sid Meier "Civilization" Title for Next-Gen Consoles   http://www.dmwmedia.com/news/2007/06/29/2k-details-first-sid-meier-civilization-title-for-next-gen-consoles

New York - Game publisher Take-Two Interactive's 2K label said this week that it plans to publish "Civilization Revolution," the first game in the franchise from developer Sid Meieir developed for next-generation consoles, in the spring of 2008. 2K's Firaxis Studio is working on versions of the game for next-generation consoles and handhelds.

Chinese In-Game Ad Network NGI Raises $10 Million   http://www.dmwmedia.com/news/2007/06/29/chinese-in-game-ad-network-ngi-raises-10-million

Los Angeles - Chinese in-game advertising provider Network Game Interaction (NGI) has raised around $10 million in its first round of venture capital financing, led by GSR Ventures, PaidContent.org reported, citing China Venture. Beijing-based NGI provides in-game ads within about 50 Chinese online games. The company has also partnered with Nielsen to provide ad measurement and analytical services to advertisers.

José María Aranda | Sierra Online | PH: 310.431.4736 | FX: 310.431.2736

http://www.dmwmedia.com/news/2007/06/29/report-u-s-in-game-ad-spending-to-pass-2-billion-in-2012

Dallas - Spending on advertising within video games in the U.S. is projected to grow from $370 million in 2006 to more than $2 billion in 2012, at a faster rate than other media including TV, radio, print and the Internet, according to a report from market research firm Parks Associates. "Advertising in electronic games had an average monthly household expenditure of less than 50 cents in 2006, while broadcast TV was at $37, meaning advertisers are not using the gaming medium to its full potential," said Yuanzhe (Michael) Cai, director of broadband and gaming at Parks Associates. The in-game ad format, offered by firms including Microsoft's Massive, IGA Worldwide and Double Fusion, is expected to see the highest growth rate among ad formats, increasing from $55 million in 2006 to $800 million in 2012, when it will account for 84% of the market.

José María Aranda | Sierra Online | PH: 310.431.4736 | FX: 310.431.2736