Growth in the installed base of personal computers is also driving demand for interactive entertainment software. The Internet provides a means by which consumers may play games and obtain information regarding interactive entertainment software titles. Individuals may play multiplayer server-based games that reside on Web sites and servers maintained by software companies. The Internet also allows consumers to participate in chat rooms to discuss features and exchange ideas regarding the games, download video clips and demos of some games and purchase games online. The industry is concentrating its efforts on converting software products to services through a concept called web services.
Web services are internet based web sites that are substitutes for packaged software.
They enable companies to instantly update their software on all types of machines simultaneously. The concept also includes companies that outsource the administration of software to companies who maintain their files and records through a web site with the client paying a monthly fee. This concept coverts software from a physical product to a service. The United States remained by far the largest single-country market for packaged software in 1997, and its share of the world market increased slightly, from 44.3 percent to 44.7 percent . Japan was second, followed by Germany, United Kingdom, and France.