One in five US households expected to have a connected console in five years

Sales generated by the next generation of internet-connected games consoles will rocket from roughly $800m in 2008 to nearly $2bn in 2011, market watchers predicted today.

A new report from Jupiter Research indicates that US industry console revenue growth will reach a high of $12.2bn in 2007 when new platform sales are strongest.

The battle for the living room will begin in earnest in 2008 with significant revenues coming from the connected console.

By this time, one in 10 households in the US will have a connected games console, and this percentage will double by 2011.

Driving the adoption of greater console use by more household members will be a key factor in the success of the business.

"Games systems in their current form have reached household saturation in the US," said Michael Gartenberg, vice president and research director at Jupiter Research.

"But revenues from the next generation of consoles will grow as vendors deploy a variety of strategies and content to attract new family members."

The study noted that, among the key elements that will attract the second and third players to consoles, will be the availability of a large catalogue of " casual games".

Publishers and platform suppliers can reach a large audience of about 75 per cent of US online users that have an interest in playing such titles. Consumers will no longer be confined to traditional platforms for social and casual gaming activities.

"In 2008, more than 50 per cent of US households will have broadband internet access and nearly 35 per cent will have a home network," said David Schatsky, president of Jupiter Research.

"As the industry shifts to digital distribution, especially for casual games and other content, it will attract an estimated 24 million households in the US to get connected. This will contribute to revenue growth from $800m in 2008 to nearly $2bn in 2011."