PricewaterhouseCoopers came out with updated estimates on the size of the retail
game market according to IndustryGamers.
- The video game softwarew industry in the U.S. and Canada will reach $21.6 billion in sales by 2013 (5.8% CAGR)
- 2009 estimate is $17.2 billion in North America
- By 2013,, games will be three times larger than the recorded music industry
- In-game advertising is expected to see some growth of 13% annually reaching $1.4 billion in 2013
- The worldwide video game market is estimated at $73.5 billion by 2013 (7.4% CAGR)
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.
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