It seems like the free online games niche is expanding. Having twice the players the console games niche is having. In 2006 the flash games industry revenue was 1.1 billion and it was expected that by 2010 it would reach 4.4 billion. But now it’s expected that it will reach 15 billion $ . This gigantic growth and the fact that most ( about 60% ) of the players are around the age of 30 and are seeking entertainment while at work, makes the free online games niche very stable. Believe it or not the online gaming are responsible for 40% of the WHOLE web traffic. Even if someone is controlling about 0.1% of the flash games market these 0.1% would still mean a couple of thousand visitors.
All that said it’s clear that it’s not only giant but also a very competitive niche. If you’r thinking of starting a online gaming website you should have a substantial knowledge on SEO ( search engine optimization ). Almost every web developing or web hosting company is offering you to SEO your website. It won’t work ! SEO is not a overnight process it needs months of consistent work and i suppose the only way is to take your time and learn how to do it on your own and then gradually break through the competition. A number of website are offering you to teach you about SEO.