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.
According to In-Stat, game industry revenue in the Asia-Pacific region is growing rapidly:
- Total revenue for the Asia-Pacific region was US$5.8 billion in 2007
- Expected to reach US$21.1 billion in 2013
- CAGR of 20.6%.
These numbers are different than the PriceWaterHouseCoopers we posted earlier.
Citing multiple articles:
According to the Korea Game Development & Promotion Institute (KGDI) the games market in Korea will be 4 trillion won (US$3.39 billion) for the first time this year
PriceWaterhouseCoopers estimated the Canadian wireless gaming market:
- Fastest-growing segment of the Canadian market
- 20.2 percent CAGR
- Market of $346 million in 2012
PriceWaterhouseCooopers estimated that the online games market across the Asia-Pacific region:
- Will grow at a 13.3 percent CAGR
- The market will be $5.6 billion in 2012
- Broadband penetration is the driving force
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.
The Nintendo DS came out in South Korea last year and since then Nintendo has seen sales of:
- 1.4 million units of the DS system
- 2.6 million software units
- 20 DS titles will be available in South Korea over the next 12 months
It’s still a relatively small market given the 1.75 game-to-DS attach rate. According to Forbes, Nintendo is taking the DS to Taiwan and China later this year.
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