Much of the games industry remains focussed on the success of massively multi-player online games (MMOGs) such as Everquest, Dark Age of Camelot and Star Wars Galaxies. However, it is far simpler browser-based fare such as cards, solitaire and puzzle games that have emerged as the largest money-spinners. Most of these are written in Java, Flash or Shockwave; can be developed quickly and cheaply and have a far broader appeal than 'hard-core' online games.

Pay-per-play browser gaming, where users pay to enter skill-based games tournaments to compete for cash and other prizes, is the hottest of the new online gaming sub-sectors. Its dramatic growth over the past two years has already precipitated a service provider (and investor) land-grab. A $35m global market only three years ago, pay-per-play gaming reached $137m in 2003 and is forecast to grow at an impressive compound annual growth rate (CAGR) of 40 per cent to 2007 to become the second largest online gaming sub-sector behind MMOGs. Other revenue streams for casual games include a resurgent advertising element, subscription-based services and paid-for downloads.

Nevertheless, the MMOG market continues to grow, defying scepticism from some corners of the industry. Continued expansion will come from both existing MMOGs as well as a range of high profile releases expected over the next two years. Europe, a relatively untapped MMOG market to date, will become the largest growth opportunity as the North American market approaches saturation. However the report also predicts that the increasingly busy MMOG release schedule will lead to over-supply issues and the re-appraisal of current models and pricing strategies.

Screen Digest forecasts that the total online PC games market will top $1.1bn in the West in 2004 and reach $2.2bn by 2007. Nick Gibson, a games industry analyst and the author of the report states: "The casual online gaming market has matured rapidly since the end of the dotcom boom era and a number of new, high margin revenue models have emerged that have, following a three year hiatus, returned rapid growth to this sector. Amazingly, every single one of the major casual games service providers reported that this growth was being predominantly fuelled by middle-aged and female gamers, the antithesis of the MMOG and hard-core gaming markets."

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Screen Digest is the pre-eminent source of business intelligence, research and analysis on global audiovisual media. Screen Digest, the journal, has been published for more than 30 years and is read in over 40 countries. Screen Digest is a research company and publishes a growing number of business reports on media markets. The company also offers online research services providing access to databases of global audiovisual market research data. Screen Digest provides strategic consultancy services and has undertaken a variety of projects on behalf of numerous national and international organisations.