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

GamesUp, a site focused on influencing the UK government to provide subsidies to the UK game development industry posted some facts on the UK market.

  • There are at least 26.5 million interactive gamers in the UK
  • In 2007, the UK games software market (as opposed to the games development market) recorded a 26% growth at retail to reach $1.7 billion

The UK recently lost its #3 status in game development as Canada took the slot. Canada has long had subsidies in Montreal that pay a significant portion of an employees salary and taxes. This has been a major incentive that has benefited Ubisoft and Electronic Arts among others.

According to Niko Partners, the leading analyst firm on the Chinese market, China’s gaming industry is really taking off over the next several years:

  • China’s 46 million gamers spent $1.7 billion on online games in 2007, up 71% from 2006
  • Advanced casual and casual online games made up 21% of the total
  • Online revenue is expected to reach $2.5 billion in 2008 and $6 billion in 2012, for a 29% compound annual growth rate in the five-year period

This is actually from a SharpBrains research report from March, but I thought it appropriate to post:

  • In 2007, the US Brain Fitness software market, reached $225 million in revenues – up from an estimated $100 million in 2005
  • The consumer part of this grew from a few million in 2005 to an estimated $80 million in 2007

This puts the non-consumer portion at $145 million, so companies and the government are definitely investing in the software to increase attentions spans and productivity, a trend we would expect to continue.