Nintendo during their quarterly report yesterday announced their intention to create the Nintendo Network. IGN reported that Nintendo President Satoru Iwata was quick to distance their new online framework from their previous abomination.

“Unlike Nintendo Wi-Fi Connection, which has been focused upon specific functionalities and concepts, we are aiming to establish a platform where various services available through the network for our consumers shall be connected via Nintendo Network service so that the company can make comprehensive proposals to consumers.”

The publisher plans to first introduce personal accounts for the Wii U. This will put their next console in line with the Xbox 360 and PS3 who have allowed the same functionality since launch. Online profiles will no longer tied to your system or individual software. Iwata said that they will be able to construct and offer the personal account system by combining a multitude of different services and content.

In a more interesting direction, Nintendo also announced their plans to offer full titles over the service to both the Wii U and the 3DS. They aren’t saying when this program will start, because the 3DS is currently out and could support such full retail downloads, but they do have the framework in place to deliver such a system. Iwata said that they will have to consider retailer relations before they start offering games over digital channels. SD card limitations are also being taken into account.

The Nintendo Network will also be obviously offering paid downloadable content. The first title to take advantage of this will be Square Enix’ Theatrhythm Final Fantasy, which allows players to purchase new songs. The title launches in Japan on February 16.

“As a software maker, Nintendo believes that its packaged software should be sold to our consumers in a form so that the consumers will know in advance that they can enjoy playing the software they purchased just as it is,” Iwata said. “We believe that our consumers will be able to feel more secure if we offer our add-on content as an additional structure in which those who love the game will be able to enjoy it in a deeper way for a prolonged play time.”

Nintendo ended the online network segment of the report by promising to achieve compatibility for all the games on their platform under their new Nintendo Network.

If you said “selling your children,” you are in a dark place my friend. But that’s exactly what Li Lin and Li Juan of Dongguan did. And they did it to fund their online gaming activity.

ABC News reports out of China that according to Sanxiang City News, the young couple met back in 2007 in an internet cafe. They soon discovered that they both had a pretty strong love for online gaming.

About a year after they met, Li Juan gave birth to a son. According to the reports, days after he was born the couple left him by himself while they traveled over 30 km away to play games at an internet cafe.

It is unclear what particular online games captivated the couple. Possibly an MMORPG? Maybe social gaming? Whatever the games were, they required money, either for a subscription or for in-game micro transactions. Once the couple had their second child, they decided to sell the baby girl for the money to play their games. They received the equivalent of around $500 for her.

When that went smoothly, they decided to sell their firstborn son as well. They raked in a substantially greater amount for him, somewhere around $4600.

They then had another boy, and sold him for about $4600 as well.

Who knows how many more children they would have made and then sold if they weren’t caught? Sure gives more meaning to the phrase “baby factory.”

Li Lin’s mom turned them in when she found out what they were doing.

According to ABC, when asked about their activities, the young Chinese couple replied, “We don’t want to raise them, we just want to sell them for some money.” They also said that they didn’t know they were doing anything illegal.

Now, it wouldn’t be the first time that a story like this out of the East comes to us a little embellished. But it seems to fall in line with other stories we’ve heard recently about strange behavior when it comes to technology.

Last month we told you about a Chinese high-school student that attempted to sell one of his kidneys on the black market in order to acquire the money to purchase an iPad2. A few weeks later, a Chinese girl attempted to sell her virginity through Weibo, China’s version of Twitter. What did she want for it? An iPhone 4.

Those kids had it all wrong. You don’t sell parts of yourself to fuel your technology addiction, you sell your kids. I mean, you can only afford to part with a limited number of vital organs. Technically, you can make around 1.2 kids per year.

Gaming addiction is real, folks. If this doesn’t make that abundantly clear, then I don’t know what does.

[Image Courtesy Lungstruck Flickr Stream]

The report called "What Americans Do Online," found that Americans spend a third of their online time (36%) communicating across social networks, blogs, email and instant messaging.

Online games surpassed email to become the second most heavily used activity behind social networks, accounting for 10 percent of all U.S. Internet time. Email decreased from 11.5 percent of time to 8.3 percent.

Among the most heavily used categories, videos/movies was the only other to experience a significant growth in share of U.S. activity online. June 2010 was a major milestone for US online video as the number of videos streamed passed the 10 billion mark. The average American consumer streaming online video spent 3 hours 15 minutes doing so during the month.

Social networking has not yet pushed email and instant messaging into obscurity yet. Both saw double-digit declines in share of time, email remains the third heaviest activity online (8.3% share of time) while instant messaging is fifth, accounting for four percent of Americans time online.

"Despite the almost unlimited nature of what you can do on the web, 40 percent of US online time is spent on just three activities – social networking, playing games and emailing leaving a whole lot of other sectors fighting for a declining share of the online pie," said Nielsen analyst Dave Martin.

The way consumers spend their online time on their mobile phones is slightly different than their Internet use on computers.  There is a double-digit (28%) increase in the use of social networks,  but email activity via mobile devices continues to increase from 37.4 percent to 41.6 percent of U.S. mobile Internet time.

Portals remain as the second heaviest activity on mobile Internet (11.6 percent share of time), despite their double digit decline and social networking’s rise to account for 10.5 percent share means the gap is much smaller than a year ago (14.3 percent vs. 8.3 percent).

Other mobile Internet activities seeing significant growth include music and video/movies, both seeing 20 percent plus increases in share of activity year over year. As these destinations gain share, it’s at the cost of other content consumption – both news/current events and sports destinations saw more than a 20 percent drop in share of US mobile Internet time.

"Although we see similar characteristics amongst pc and mobile internet use, the way their activity is allocated is still pretty contrasting, added Martin. 

"While convergence will continue, the unique characteristics of computers and mobiles, both in their features and when and where they are used mean that mobile Internet behavior mirroring its PC counterpart is still some way off."

 Among those reporting they personally play video games on at least one type of console, 54 percent said they play games online, down slightly since 2009 and 2008 (56% and 55% respectively).

The average number of hours spent per week on online gaming has increased from 7.3 hours per week in 2009 to 8 hours per week in the 2010 report. This means that, despite the decline in overall online game play, those who are playing, are spending more time playing than they did last year.

"While the percentage of the population that reports playing games has declined slightly, this study details other metrics which point to both stability and growth in both online and offline gaming," said Anita Frazier, industry analyst, The NPD Group."

The report found 71 percent of online gamers purchased or received a game over the 2009 holiday season. There were no major changes to the percent of online gamers making purchase from 2008 to 2010, and also no significant changes regarding average volumes purchased during that same time period. This indicates online gamers buying habits may not have been significantly impacted by the recession and it may be a positive for the future.

"The installed base of video game systems continues to grow, the platforms available to play games continue to expand, and the options for content acquisition have never been greater, especially online," said Frazier.
"And yet, effective monetization of many forms of online gaming continues to be a topic of much debate and discussion within the industry."

"Mobile gaming, for instance, has advanced to play a bigger role and the iPhone, in particular, is attracting a lot of attention given the dizzying array of game apps available for this device. Social networks have emerged as the hot venue for online gaming, due to the huge number of subscribers these are attracting. But still, it’s unclear which business models are working in this space."

The PC is still the most-used system for online gaming, with 85% of online gamers reporting using a PC for online gaming activities.  Among non-PC systems, the Xbox 360 maintains its leadership for the third year in a row as the top video game system used for online gaming at 48%.  In contrast to 2009, when Wii was leading over PS3 by 8 percentage points, PS3 and Wii are now neck and neck, with about 30 percent of online gamers reporting that they use each system for online gaming.

This is due to an increase in use for online gaming on the part of the PS3, which increased 10 percentage points since last year. The top three systems with the highest average hrs/wk spent gaming online (using the respective systems they own) are: Xbox 360 (7.3 hrs), PC (6.6 hrs) and PS3 (5.8 hrs).

The number of online gaming paid subscribers, which totaled 19.4 million at the end of last year, will more than double to 44.5 million by the end of 2014. The increase in usage will be driven by the rise in digital distribution of online games as opposed to retail boxed sales, along with an increase in broadband adoption.

"Established franchises such as ‘World of Warcraft,’ ‘EverQuest,’ and ‘Dungeons and Dragons Online’ continue to create new game content in order to retain existing subscribers, while introducing new generations of gamers to their platforms," said Tim Deal, Pike & Fischer senior analyst. "The amount of online play is escalating rapidly."

While the number of online game subscribers will increase, average monthly online game subscription fees will drop from $12 in 2009 to about $9.50 in 2014. This decrease will be fueled by increased competition, increased subscription volume and better cost efficiencies.

P&F says the increasing complexity of online gaming environments will heighten demand on broadband networks, giving Internet service providers an opportunity to boost revenues by adding higher-speed tiers for intense gamers.

Related Articles:

>US Video Game Revenue Down 31%

>Digital Music Sales Closing In On CDs

>42% Of Americans Play Games Online

"As a growing number of people turn to the Internet as an entertainment channel, many online gaming sites have seen their traffic levels swell to record numbers," said Maru Sato, managing director of comScore Japan.

"Online gaming has not only captured a growing number of visitors, but also shows some of the highest levels of engagement on the Web with users averaging more than an hour on gaming sites in July."

Yahoo Games led the category with 4.8 million visitors, up 13 percent from the previous year. Hangame.co.jp ranked second with 3 million visitors, followed by Wazap with 2.5 million visitors (up 42%). Gamepot (up 37%) and Goo Games (up 77%) also experienced significant growth.

In July, visitors to gaming sites each spent an average of 76 minutes on the sites and visited them an average of eight times, making gaming one of the most engaging activities on the Internet. Among the most trafficked gaming sites, Hangame led as the most engaging with its visitors averaging 2 hours on the site and visiting the site 11 times during the month.

Yahoo Games, the most visited online gaming site, was also home to heavy gamers who spent an average of 1 hour and 15 minutes on the site during the month.

Other sites that saw heavy usage included Nexon Corporation (44 minutes per visitor and 8 visits per visitor), Gamepot (53 minutes per visitors and 10 visits per visitor), and Gamania (24 minutes per visitor and 5 visits per visitor).

The category attracted 87 million U.S. visitors in May 2009, up 22 percent compared to a year ago.

Yahoo Games was the most popular with 19.4 million visitors, representing a 6 percent increase over the past year, followed by EA Online with 18 million visitors (up 34 %), Nickelodeon Casual Games with 14.8 million visitors, and WildTangent Network with 13.8 million (up 16%). GSN Games Networks saw particularly strong gains in the past year, growing 563 percent to 6 million visitors, due in part to the additions of WorldWinner.com and CrazyMonkeyGames.

"Online gaming continues to be one of the top gaining categories over the past year growing at ten times the rate of the total U.S. Internet population and reaching nearly one out of every two Internet users," said Edward Hunter, comScore director of gaming solutions.

"And the growth in the category is occurring not only at the top gaming destination sites, but also through viral distribution platforms, including widgets and applications. In fact, some online gaming companies that distributed their games across sites are reaching as many people as the top online gaming sites."

Distributed content platforms can often reach audiences of a size comparable to online gaming destination sites. MochiMedia reached a combined audience of 16.9 million in May, greater than all but two sites in the online gaming category. Games2Win reached 1.8 million people, which compares favorably with the top twenty sites in the category, while Tetris Online reached 165,000 people.

PC online gaming experienced a small decline over the same time period, but it was still the most widely used platform for online gaming.

At 50 percent, Xbox 360 held onto its position as the console online gaming leader, even with changes among other major console systems. For example, use of Nintendo’s Wii increased from 118 percent in 2008 to 29 percent in 2009, while PS2 fell and PS3 moved up from fifth place to third place. This indicates the strength of Xbox 360, both overall, and specifically in the online gaming arena.

Anita Frazier
NPD Group

Broken down by demographics, the percent of online gamers ages 13-17 increased from 17 percent in 2008 to 22 percent in 2009, while the percent of 19-34 year olds, as well as those 35-54, decreased slightly. These shifts reveal that online gaming may have become more popular among 13 to 17 year olds compared to last year, a trend that is supported by the growth in teens using a console system for online gaming, and a relatively proportional decline among adults.

"Online gaming is enjoyed by a diverse group of players," said Anita Frazier, industry analyst, The NPD Group.  "The sheer variety of content and ease of access makes online gaming attractive to a much larger demographic than what we typically see in retail."

The percent of online gamers purchasing at least one game for a console system has increased slightly since 2008, as has the percent purchasing for a portable system. That slightly more people report that they are purchasing more games compared to last year may be an indication that the game industry is recession resistant.

American’s total amount of Internet time spent playing online games grew from 3.7 percent in December to 4.9 percent in December 2008.

Yahoo Games ranked as the most visited site with 19.5 million visitors (Up 20%), followed by EA Online with 15.4 million visitors (up 21%), and Disney Games with 13.4 million visitors (up 13%). The tenth most visited site, Spil Game, saw traffic boom 269 percent to 6.7 million visitors.

 ComScore

"It appears that online, ad-supported gaming is one of the activities that has benefited during this economic downturn," said Edward Hunter, comScore director of gaming solutions.

"Not only have consumers turned to outlets such as gaming to take their minds off the economy, but as they curtail their discretionary gaming-related purchases they are turning to free alternatives."

Online display advertising is also doing well in online gaming.  From November 2007 to November 2008, the total number of display ad views in online gaming grew 29 percent to 8.6 billion.

The increase in display ad exposure is due mainly to the increasing number of visitors (up30%), while the average person’s frequency of exposure has remained relatively constant at 127 ad views per person.

"The growth in display ads in the online gaming category not only underscores the assertion that gamers are increasingly accepting of ad-supported games, but also that the advertising community is recognizing the value of this highly engaged audience," added Hunter.

"It is also likely that the advertising agency community will begin to demand more evaluations of campaign effectiveness in this space as spend and impressions continue to rise."
 

Want to replace the foot in Joe Biden’s mouth with your own? Smacking the lipstick off Palin? If you’re saying, “You betcha!” first stop yourself from saying that ever again and give the game a try.

Technically, it’s old news among the Web-based Flash game crowds, popping up during the primaries with a more extensive cast of politicians to vicariously duke it out with—think Giuliani with crazy razor-sharp claws. Just before the vice presidential debate, the cast of warriors was narrowed to Barack and Michelle Obama and Joe Biden on the left, of course, facing off against John and Cindy McCain and Sarah Palin. (Forgive me for missing it, but I was busy with a newborn at the time.)

Cindy McCain dons Uma Thurman’s “Kill Bill” yellow motorcycle suit, and Palin is done up in Xena, Warrior Princess garb. She wields—what else?—a bladed hockey stick and fights dirty sometimes by pulling out a rifle and firing from afar.

You can be any candidate you like—note Biden enormous sword and that big stick McCain was talking about. So if in the next two weeks you just can’t stand it, play out those fantasies online all you like, whatever keeps you from trying it in real life!

This is also smart viral promotion on Atom.com’s part, and you’ll have to sit through an ad to get to game play. It’s worth it though.

Here’s a video of some of the action.

Funny Videos | Funny Cartoons | More Video Clips

_{Special side note bonus story: The “Kung Fu Election” sent to me thinking of the difficulty some native Asian-language speakers have with English l’s and r’s, which reminded me of my days as an English teacher in Japan. One day in 2004, the big news was an assassination attempt on an official in Taiwan. Incorporating that news into my lesson, I had the class learn phrases individually with the desired outcome being they could put the story together on their own. They repeated after me for a while, were drilled, and then had to perform. One student’s story went this way: “It was Erection Day. . .Medics had to appry plessure to stop the breeding.” And then class was dismissed on account of hysterical laughter on the part of the instructor.}