Even though broadband is a huge factor, the most important issue is business model. The game developers now become content providers--the game has to stay interesting, keep building new worlds, levels, new characters, advances... Game development is costly. This is just going to kick it through the roof and also introduce greater pressure for quality, emersive, and expansive content (the net is not the place to have a title flop)... Then you have to be concerned about infrastructure--if users can't log in, or meet up with their friends, or have their game histories or ids deleted or blocked on online games or their secrity compromised, that'll be more costly than whatever infrastructure they put together... And no one knows if it is going to succeed or not, but obviously you want it to, so this is an ideal example of outsource/inhouse, scalability type issues--do you accomplish the right scale at the right time with THE successful product or do you settle for being undercapacity and a money drain or deal with poor throughput and customer service complaints. And the big kicker: how do you charge for it: subscription, per game, per upgrade, free with fees for extras, advertising, etc... This is ugly stuff to be facing if you are a game developer, and I think the biggest reason prventing this from happening.
No, online gaming will not advance the adoption of broadband. I think quite the opposite: online gaming will be stagnant for some time, leaving people to wonder: "These crappy expensive online games are the big benefit of going broadband? No thanks, I'll wait."
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