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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Final Thai crackdown feared as guests evacuate | Video 3:09am EDT Volcanic ash grounds hundreds of European flights | Video 3:05am EDT Britain says to ease no-fly decree on Heathrow 12:58am EDT Europe blocks U.S. emergency exit door 16 May 2010 BP says progress in effort to contain oil spill | Video 3:15am EDT Thailand toughens stand against spiraling protests | Video 16 May 2010 Japan PM's dilemma over U.S. base deepens before poll 16 May 2010 UPDATE 1-WHO study has no clear answer on phones and cancer 16 May 2010 Iran, Brazil, Turkey sign nuclear swap deal 3:06am EDT FOREX-Euro extends losses to hit 4-yr low on debt woes 1:21am EDT Final Thai crackdown feared as guests evacuate | Video 3:09am EDT Heavy metal veteran Ronnie James Dio dies, aged 67 16 May 2010 Video of American drowned saving son shocks Italy 16 May 2010 Google says mistakenly got wireless data 16 May 2010 Africa's lake Tanganyika warming fast, life dying 16 May 2010 Iran, Brazil, Turkey sign nuclear swap deal 3:06am EDT Britain says to ease no-fly decree on Heathrow 12:58am EDT Volcanic ash grounds hundreds of European flights | Video 3:05am EDT UPDATE 1-WHO study has no clear answer on phones and cancer 16 May 2010 Gold rises toward peak, investors lift ETF to record 2:00am EDT Free games lure new players including women, elderly John Gaudiosi RALEIGH, North Carolina Mon May 17, 2010 1:50am EDT Related News Sony aims for 5-fold jump in profit but lags consensus Thu, May 13 2010 Microsoft launches new Office, duels Google online Thu, May 13 2010 Microsoft launches new Office, duels Google online Wed, May 12 2010 UPDATE 2-Microsoft launches new Office, duels Google online Wed, May 12 2010 Networks unlikely to profit from World Cup Fri, May 7 2010 Gamers play ''Call of Duty: Modern Warfare 2,'' at a pre-release event held in New York November 9, 2009. Credit: Reuters/Lucas Jackson RALEIGH, North Carolina (Reuters) - The video game industry has weathered the economic slowdown better than most industries, but there could be a reason -- free games with new figures showing up to a third of gamers don't pay to play. Technology | Media More people are getting into gaming through free titles like Zynga's "Treasure Isle" played online through social networking sites like Facebook, downloading free games like ngmoco's "Godfinger" on mobile devices like iPhone and iPad, or sitting on a friend's couch to play multiplayer maps with titles like Activision Blizzard's "Call of Duty: Modern Warfare 2." New research from video game tracking firm Newzoo found every existing video game platform from mobile to console has an audience of at least 30 percent of non-paying players. "The shift toward online business models servicing a broader range of target groups started before the recession and has resulted in continued growth through the rough economic times in terms of revenues," said Peter Warman, managing director and founder of Newzoo. "The platforms offering free-to play-gaming options like massively multiplayer online (MMO) games, mobile games and casual game portals lare successfully converting players to payers." PopCap.com, a leading game maker in the $3 billion casual games industry, offers free versions of its games like "Bejeweled Blitz" on Facebook, as well as its own site. "Our belief is that by allowing customers to experience our games for free it's a good way to guarantee customer satisfaction, as they have been able to play the game pre-purchase with the promise of lots more fun to come," said Paul Breslin, general manager, Popcap.com. The "Newzoo Games Market Report" said one-third of the $25.3 billion that U.S. gamers spent on video games in 2009 came from online revenues (MMOs, game portals and mobile devices) and the digital distribution of console and PC games. FREE GAMES SPREADS THE NET The U.S. currently leads the world in online business revenues, but Warman believes the EU and other territories will continue to grow gaming revenue in this arena moving forward. "These free options are definitely broadening the appeal of video games among older and female demographics, and a lot of these consumers don't actually consider themselves gamers at all," Michael Cai, vice president of video game research, Interpret. "Without casual gaming portals like Pogo, Real Networks, and Big Fish Games, many older female gamers would have never paid for gaming content." Interpret discovered that 21 percent of the U.S. population, or over 46.1 million Americans, play social network games. Over 11 million Americans only play social network games. The median age for social network gamers is 38.8, versus 30.9, which is the median age of console gamers. Cai found that 12 percent of these social network gamers plan on buying a Wii, which would be their first game console. More console game makers are offering consumers free play, including downloadable game demos through Microsoft's Xbox Live Arcade and Sony's PlayStation Network Store. "Handing over free content to gamers can be tremendously beneficial to developers and publishers, even if it comes in the form of a short playable demo of a game that's not spectacular," said Patrick Shaw, features editor, GamePro Magazine. "Often times a small taste of a game is all it takes to entice the player to purchase the full game." (Editing by Belinda Goldsmith) Technology Media Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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