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.

eMarketer projects that US in-game advertising spending will increase from $295 million in 2007 to $650 million in 2012. The global in-game advertising market is poised to grow to a $2B global industry by 2012.

The latest Nielsen study also showed that 82% of consumers react positively to receiving contextual in-game ads during game play.

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.

According to DFC Intelligence:

  • There are 11 countries that have annual video game revenue in excess of $1 billion
  • the Video Game Market will Reach $57 Billion in 2009

“Consumer spending on software is at record levels and the game business seems to actually benefit from a recession because games are a relatively cheap form of home entertainment,” said DFC analyst David Cole.

According to the new Online Game Market Forecasts report:

  • PC online game revenue passed $7 billion in 2007, not including retail sales
  • PC gaming revenue will hit $19 billion by 2013