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Microsoft, Nintendo and Sony, the three main vendors of the gaming console, have turned to online gaming either to generate additional revenue streams or to promote brand loyalty, says the high-tech market research firm, In-Stat.

Last year was a good one for video game makers, but the hardware side of the business is costly, not to mention fiercely competitive. But game console customers also are proving to be good online customers as well, and the study predicts major growth in the subscription market.

“The primary differences among Nintendo’s, Sony’s, and Microsoft’s online efforts are mainly of scope,” says Stephanie Ethier, In-Stat analyst.

A recent research by In-Stat found that from 2004 to 2011, annualized growth of console subscribers will be 42.7 percent, and growth of handheld subscribers will be 37.1 percent.

It also showed that out of all the people who own and use an Xbox or Xbox 360, 32 percent already subscribe to Xbox Live. Dynamic in-game advertising is also seen as another area of revenue growth.

“Microsoft is looking to create a number of revenue streams through its Live service, including its subscription service, paid casual games, and additional paid content. Sony is following a model similar to that of Microsoft’s, except for the subscription service. Nintendo is limiting its revenue to paid downloads for Nintendo and partner games,” added Ethier.

The report, "Online Gaming: Worldwide Subscriber Growth Expected for Both Free and Subscription-Based Online Services," focuses on subscription console gaming rather than on online PC play or casual gaming. It also contains forecasts for number of consoles in use each year through 2011 and predictions for revenues from subscriptions, paid downloads and advertising.

Further information on this survey or to purchase it online, users can visit the In-Stat homepage. Price of this particular survey is USD 3,495.