The explosion of mobile games like "Infinity Blade" on iPhone and "Angry Birds" on Android smartphones has lured new consumers into playing games. At the same time, video game company Zynga has turned social network FaceBook into a hugely successful platform with hits like "Farmville" (55 million monthly players) and "CityVille" (44 million and counting).
"Before we were figuring out how to make social games, now we are mastering the art of making social games," said Mark Skaggs, vice president of product development at Zynga.
He said the next generation of FaceBook games will have "deeper gameplay, more polish, and be much more and better social experiences."
North American sales of video game hardware, software and accessories are expected to reach $20.9 billion for 2010 by the time all sales are totaled after the holidays. That figure is down four percent from 2009, according to Jesse Divnich, vice president of Electronic Entertainment Design and Research.
Yet, despite the economic slump that continues to impact gamers' disposable income, industry players expect 2011 to bring a wave of new revenue from items such as downloadable content, mobile games, and in-game micro-transactions.
Adding the new sources of revenue, Arvind Bhatia, senior research analyst at Sterne Agee, sees U.S. and European game sales up 5 percent for 2010 and another 5 percent for 2011.
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