Up until that point, consumers were used to spending less on handheld game machines.

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While videogames used to be limited to dedicated game machines and personal computers, the proliferation of smartphones and other Internet connected devices is opening the floodgates to free or inexpensive games.

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Earlier this year Microsoft used two of the machines in its release of the online game Grand Theft Auto 4.

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Anders said much of the growing demand for gaming stems from server-based gaming--software-based applications used for slots and video gaming machines--which bodes well for manufacturer International Game Technology.

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Anders said much of the growing demand for gaming stems from server-based gaming--software-based applications used for slots and video gaming machines--which bodes well for manufacturer International Game Technology (nyse: IGT - news - people ).

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