About 114 million people will be gaming online by the year 2006, according to a new report.

US market researchers DFC Intelligence said that the gaming industry will focus on the internet as the new growth area.

A DFC spokesman explained that, while online games should boom over the next few years, a question mark remains over whether individual companies can turn services into cash.

The report stated that the top online games generate revenues in excess of $100m each.

Up until now, most people have been playing online games through their computers, but games console manufacturers are looking to muscle in on this market.

Microsoft has already announced ambitious plans to launch a global interactive gaming network for its Xbox at a cost of $2bn, and electronics giant Sony is offering a network adapter for the PlayStation 2.

DFC predicted that about 23 million consumers worldwide will be playing console games online by 2006.