Anything But Business As Casual

[Disclosure: A slightly modified version of this article appeared in the April edition of DFC Dossier.]

What in the early Internet days started as an afterthought today has grown into a market of its own. In 2008 the total revenue for casual PC gaming totaled a respectable $1.58 billion* in Western Europe, North America and most of Asia. DFC expects this number to increase to $1.69 billion in 2009.

Life’s been pretty good thus far: an average annual growth rate more than 60% has allowed everyone to do well. As more competitors entered the party, casual gaming also underwent a lot of consolidation as big-ticket publishers aggregated eyeballs for advertising’s sake. RealNetworks spent a lot of money to capture an audience large enough to sustain its ambitions for world domination. And as the current biggest casual company with 11.7% of total market share (based on revenue), it’s fair to say this strategy has paid off. The company is currently working to spin off its games division, RealArcade, as a separate entity.