PricewaterhouseCoopers Predicted:

Console games, the largest category, will grow by 6.9 percent annually, from $24.9 billion last year to $34.7 billion in 2012.

Online and wireless games will grow the fastest at 16.9 percent and 19 percent, respectively. Online will jump from $6.6 billion last year to $14.4 billion in 2012, while wireless games go from $5.6 billion to $13.5 billion in the same frame.

Just behind those is the emerging video game advertising sector, which will go from the $1 billion level in 2007 to $2.3 billion in 2012, a 16.7 percent annual growth rate.

“That’s phenomenal growth,” said PwC partner Stefanie Kane — especially considering that in-game advertising only works with certain kinds of games, sports being a primary example.

As has been the case, PC games are the laggards. That sector will fall 1.2 percent a year from 2007’s $3.8 billion to $3.6 billion in 2012.

The U.S. also will lag a bit compared with global growth, with overall video game revenue growing by 7.9 percent annually, from $12.1 billion in 2007 to $17.7 billion in 2012.

As of the end of 2007 in the U.S., there was an installed base of 9 million Xbox 360 consoles, which Microsoft launched in November 2005. That was followed in the next-generation category by 7 million for Nintendo’s Wii and 3 million for PlayStation 3, both of which were introduced in November 2006.

Welcome to the blog. My name is Sean Kauppinen and I’ve been in the games industry for  more than 17 years.  I’m constantly looking for research and data on the industry and wanted to create this blog so that anyone interested in finding out the size of the market could get the data quickly and easily. I’ve added information and presentations on launching games and other topics that might be of interest. Thanks for taking the time to visit, and definitely let me know if you have any questions.

Billy Pidgeon over at IDC estimated the size of the video game market in a recent research report:

  • “Industry revenue for dedicated console and handheld hardware and software attained an unprecedented high of $46.4 billion in 2007 and will grow 22.9% in 2008 to reach $57.1 billion.”

This research report actually came out before the DFC Intelligence report, but given two analysts have estimated the $57 Billion number, it’s probably safe to use.

The San Jose Mercury News reports that:

  • 27% of new US console sales are being sold to households that do not currently own a game console
  • By the end of 2008, 44% of US households will own a console, up from 37% in 2007
  • NPD is estimating the market at $21 Billion to $23 Billion in 2008 which represents 16.6%-27.7% growth over 2007
  • 25 Million consoles have been sold in the US in the past 2 1/2 years