A new report from PricewaterhouseCoopers predicts that the number of online video game subscribers will more than quadruple between 2005 and 2009, as will online gaming revenues.

The number of online video game subscribers hit 4.4 million in 2004, up from just 400,000 in 2000. The sector will exhibit enormous growth, with subscribers totaling 6.5 million in 2005, 17.1 million in 2007 and 28.5 million by 2009. At that point, 46% of broadband households will contain an online video game subscriber.

Spending on subscriptions is expected to top $3.7 billion by 2009, compared to $647 million in 2004. This will occur even though the average monthly subscription fee will decline steadily over the course of the decade, sitting at $11.00 by 2009, compared to a high of $12.95 in 2002.

Japan, with its considerably smaller population, spends roughly as much on online games as the US, according to data from Nomura Research Institute. It reports that the online gaming market in Japan totaled 77 billion yen in 2004, roughly $700 million. But the PricewaterhouseCoopers projections show the online gaming market growing substantially faster in the US than in Japan. Nomura projects that the Japanese market will reach 200 billion yen, or about $1.8 billion, by 2009, well short of the $3.7 billion projected for the US by PricewaterhouseCoopers.

Japanese superstar publisher Square Enix has emphasised that online gaming is the way forward for its RPG-heavy titles and has stated that every console in the future will feature full online capabilities, according to statements emerging from the company's shareholder meeting.
Discussing revenue plans for the coming year, Square Enix warned that profits could suffer as the current generation of consoles gives way to the next-gen, but assured shareholders that investment in online gaming now would offer great returns in the long run.

To achieve this long-term profit, SquEnix is already growing its online sector faster than the market actually needs so that it is at the forefront when more and more players get the ability to play online.

SquEnix has already had success in the online sector, with Final Fantasy XI on PC and PS2 snatching the publisher a 50% share of the massively multiplayer market in Japan. According to Square, FFXI has also "beaten EverQuest in America" and is "doing well in Europe."

Other topics of discussion were Final Fantasy XII on PS2, expected to finally launch next year and sell 3 to 4 million copies in Japan; The next instalment in the massively popular Dragon Quest franchise, which was neatly ducked by the SquEnix spokespeople; and ex-Square golden child Hironobu Sakaguchi's new Mistwalker studio, which evidently has absolutely no financial connection to Square Enix.

Darkness Rising will introduce several new systems that will add to the player's ability to customize and tweak their characters. First and foremost, with the introduction of player mounts, our players will finally be able to charge into battle. By earning a class-specific champion weapon, our players will be able to increase their combat power, and visually showcase their achievements to everyone around them. And finally, by earning Champion Levels, our players will be able to earn sub-classing abilities that will enable them to add some custom abilities to their arsenal.

In a few weeks, The Matrix Online users will be asked to re-submit their billing information to SOE and continue paying their standard monthly fee or sign-up for the SOE All-Access Pass, which includes games like EverQuest, EverQuest 2, PlanetSide, EverQuest on PlayStation 2, Star Wars Galaxies and now The Matrix Online.

Some downtime is expected during the cross-over, but SOE says it shouldn't be anything more than the typical downtime during routine server maintenance.

The DC Comics MMO is currently in development for PlayStation 3, PSP and the PC, but isn't scheduled for release until the fourth quarter of 2007. The current plan is to have all three platforms communicating with each other simultaneously. Though SOE admits the gameplay design on a handheld will obviously be different, they hope to allow PS3, PSP and PC players to play with one another. SOE doesn't expect the game to even show up at the Electronic Entertainment Expo next year.

Sony Online Entertainment Inc. and Warner Bros. Interactive Entertainment are set to announce Friday an exclusive long-term licensing agreement that will let gamers share a universe with DC Comics' Superman, Wonder Woman, Batman, the Sandman and other action immortals.

The companies also disclosed that Sony Online had acquired Warner's "The Matrix Online" game. All 25 staff members currently operating the subscription-based massively multiplayer online game have been offered their existing position under the new ownership.