Games market to hit $47bn

Worldwide video games market to grow to $47bn says report.
Author:
Publish date:
Social count:
0
5_Pocoyo.jpg

According to a series of new reports from DFC Intelligence the worldwide video game and interactive entertainment industry is expected to grow from about $33 billion in 2006 to as much as $47 billion in 2009.

This numbers include revenue from hardware and software, dedicated portable system hardware and software, PC games, and online PC and console games.

The report forecasts strong growth in all major categories, including PC games which it forecasts will grow to over $13 billion by 2012. Much of this growth will come from online game revenue, including subscriptions, advertising and digital distribution.

DFC also is looking at continued strong performance for the portable game market. “Revenue from portable game software has more than doubled in recent years and we think that the Nintendo DS could eventually become the best selling game system ever in five years,” says DFC analyst David Cole.

The biggest area of uncertainty remains the performance of the three video game console systems: the PlayStation 3, the Nintendo Wii and the Microsoft Xbox 360.

DFC forecasts the market using three different scenarios and estimates that combined cumulative worldwide sales for the three systems will reach between 180 to 210 million units by 2012. The biggest issue is the performance for the individual systems.

In all scenarios, DFC has raised its forecast for the Wii and the PlayStation 3 and lowered its forecast for the Xbox 360. According to Cole, “The Xbox 360 will need to build a strong base outside North America to avoid being in a fairly distant third.”

DFC forecasts that the Wii will be the strongest system through at least 2008. However, the PlayStation 3 could start coming on strong in 2009.

“We could have a situation where the Wii sells more hardware units, but by 2012 the PlayStation 3 is generating more software revenue,” says Cole.

Related

95_mypictr_200x200.jpg

Game on

Despite new pressure from the video games sector, which has moved into social gaming in a big way, a recent Reuters poll showed many consumers are returning to board games and puzzles, as staying in becomes the new going out. ToyNews finds out what is new in the market...

Featured Jobs

Vivid Job Logo 620 x 349

Digital Marketing Executive - Toys & Games

Vivid is Britain’s biggest toy company and the 20 largest in the world. With offices across the globe, they sell an amazing portfolio of toys and games to over 60 countries. Vivid is best known for its association with blockbuster brands and is very excited about future opportunities around the world.

Liberty

UK Sales Agents

Liberty House Toys have been appointed as the exclusive UK distributor for the BiOBUDDi brand, and we are pleased to introduce this new unique, innovative and exciting range of 100% environmentally-friendly toy building blocks. We are seeking experienced sales agents with existing network in the toy retail market.

Gameplan Job Logo 620 x 349

Head of Product Development & Marketing

Our client is a privately owned French toy and games manufacturer which sells through distributors in forty countries. The company develops and sells innovative electronic interactive toys and games for the educational and gaming markets, and also takes suitable licenses. To progress its successful business development a Head of Product Development & Marketing is to to recruited.

HIT Entertainment Job Logo 620 x 349

Licensing Systems Administrator

The Contract System Coordinator is a newly created role to support the deal term entry process into Mattel’s new Contract Management System for its Licensing business. The role will support the Business Teams at the Deal & Amendment phase of the contracting process and act in conjunction with the System Administration team.