Media analysts Screen Digest have released a report that claims that the market for MMOs outside Asia has hit $1billion in 2006 for the first time.

The report, "Western World MMOG Market: 2006 Review and Forecasts to 2011", showed that subscription services are still the main source of income, accounting for 87% of the market, but virtual item sales and in-game advertising have also contributed to the growing market.

Included were current sales figures and projections up to 2011, showing that in 2006, the North American subscription market was worth $576m, while Europe was worth $299m, up dramatically from $74m in 2004.

And does it surprise you to learn that much of the growth can be contributed to one game? Yes, that right, I’m sure you can guess that it’s World of Warcraft that has been crucial in transforming the European region from a niche to a mass market proposition, more in line with the US.

Amazingly, World of Warcraft accounted for 54% of the subscription market in 2006, generating revenue of $471m. Next in line was Runescape from UK developer/publisher Jagex.

“During the past few years the Western landscape for MMOGs has become increasingly fragmented following the introduction of new genres of game including social networking, virtual pet rearing and virtual world building titles”, commented Piers Harding-Rolls, Games Analyst at Screen Digest.

“These new games and platforms have brought with them many new gamers and also new business models that are generating revenue that is largely incremental to the incumbent subscription business.”

>> Link - Official Site/Screen Digest