Spending on Smart TV gaming to reach $1.6 billion by 2016

Consumer spending on gaming through connected TVs is expected to reach $1.6 billion in 2016, GI reports.

According to a report from IHS, spending is at $88 million this year. This is expected to rapidly grow alongside the popularity of internet-enabled and free-to-play games.

By 2016, the analyst firm predicts 800 million TVs will have access to the internet and gaming content that must be purchased, alongside Blu-ray players or set-top boxes.

"The sheer volume of addressable connected devices means this sector will be hard to ignore for content owners," said Piers Harding-Rolls, head of games research at IHS.

"There remain hurdles to overcome, of course, not least of which is user monetisation. However, IHS expects an acceleration in spending during the next five years as these hurdles are dismantled by leading industry players."

Sony's recent purchase of Gaikai indicates gaming through Smart TVs is on the up. Currently, a lack of hardware and quality content hampers growth significantly, but this looks set to change across the next few years.

"Based on the quick evolution of previous digital games markets and the time it takes to develop the necessary relationships to get content published across devices, gaining first-mover advantage is likely to be key to the connected TV games sector."