"Despite the buzz in the industry regarding online gaming, it is still relatively small compared to offline gaming," said NPD Group analyst Anita Frazier.
"There is still a large, untapped market for gaming in general and online gaming in particular."
Another interesting note was that children aged 2 to 12 accounted for over 25 percent of online gaming,and that 18 to 24 year-old represented only 10 percent of online gaming.
Not surprisingly, the Xbox 360 was the favored system for consoles and online play and that 360 owners "actually spent more time per week using their console to play games online than PC and PS3 owners."
The report was based on a survey of 20,240 consumer panel members which was conducted for two weeks earlier this year.
Get regular news updates from AfterDawn.com by subscribing to our RSS feeds using the Subscribe button below. If you have been living in a cave for a few years now and don't know how to use RSS feeds, then Click Here to read a Guide on how to use RSS (and other) feeds.