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The video game industry (formally referred to as interactive entertainment) is the economic sector involved with the development, marketing and sale of video and computer games to millions of people worldwide. There are over 11 countries with revenues of over $1 billion.[1]

See also Worldwide market in 2008 (revenues) and market research reports.

Overview

European market
European market (2008)[2]
W3stfa11Added by W3stfa11
US Inflation-Adjusted Revenues
Overall United States video game market revenues from 1973 to 2013, adjusted for inflation (in 2012 dollars for years prior to 2012).
Blue - Arcade sector
Red - Consumer sector (incl. console, PC, handheld, mobile, tablet)
Green - Overall US market (all sectors)
Jagged85Added by Jagged85
Japan Inflation-Adjusted Revenues
Japanese video game industry revenues from 1987 to 2013, adjusted for inflation.
Blue - Domestic Japanese arcade market
Red - Domestic Japanese retail market, including the console, handheld and computer sectors (hardware and software)
Purple - Domestic Japanese mobile game market
Green - Total domestic Japanese video game market, including all sectors
Cyan - Japanese retail exports (hardware and software) to overseas markets (console, handheld and computer sectors)
Orange - Overall Japanese video game industry, including both domestic Japanese market and overseas retail exports
Jagged85Added by Jagged85

The worldwide the game industry in 2007 was valued at $44.9 billion.[3] This number was expected to grow 9.1% annually to $48.9 in 2011 and $68 billion in 2012, making it the fastest-growing component of the international media sector.[4][5] In 2004, the worldwide industry generated more than $25.4 billion.[6]

Over a decade before, the US retail video game market was worth $7 billion (1994)[7] and $4.7 billion (1990) before that.[8] This period coincided with the arcade renaissance, when US arcades generated $7 billion in 1994,[9] thus the total US market was worth $14 billion in 1994. The total worldwide retail video game market was worth $20.8 billion in 1994,[10] equivalent to over $32 billion with 2012 inflation.[11] By 1990, over 40% of gamers were adults and over 30% of gamers were female.[12]

A decade before that in 1982, $1.5 billion of revenue was generated from console sales in the nascent US home video game market,[13] just before the video game crash of 1983. The total US console market was worth $3.8 billion in 1982.[14] This period coincided with the golden age of arcade video games, which generated annual US revenues of $8 billion from arcade quarters in 1981[15] and 1982.[16] At the height of the arcade golden age, the worldwide video game industry was estimated to be worth as much as $35 billion in 1981,[17] equivalent to over $88 billion with 2012 inflation.[18]

The worldwide PC-based game market is worth as much as $10.7 billion as of 2008. This number includes retail sales, online revenue, digital distribution and relevant ad sales.[19] In 2011, the PC game market increased to $18.6 billion, largely due to the rise of the $6 billion Chinese PC gaming market.[20] By 2015, analysts predict the global video game industry will reach $91 billion.[21]

Comparison with other forms of entertainment

The U.S. video game industry boomed in the early 2000s and became one of the leading forms of entertainment in terms of total revenue. Presently, the industry is at around $22 billion for 2008 (conservative estimate) in the US and $30 to $40 billion globally. Here is how it compares with other entertainment industries.

  • Music industry - $10.4 billion (US 2008)[22] and $30 to $40 billion globally [23][24]
  • Movie industry - $9.5 billion (US)[25] and $27 billion globally.[26]
  • Book industry - $35.69 billion (US 2007) [27] and roughly $63 billion globally (2002) (Euromonitor Intl)
  • DVD industry - $23 billion (US)[28] (buying $16B, renting $7B)

It surpassed the U.S. movie and music industry in 2005 and 2007 respectively. In the 2008, the UK industry blew past the music industry and is expected top DVD sales in the near future.[29]

Regional video game industry revenues

See also: Video games in the United States for US figures and Video games in Japan for Japan figures
Region / Country 2013 2012 2011 2010 Note(s)
Asia-Pacific $47.523 billion $42.073 billion $37.878 billion $36.571 billion [30]
Japan $20.49 billion[31] $20.3 billion[32][33] $18.56 billion[34] $18.98 billion[35] [36][37][38]
China $13.7 billion[39] $9.8 billion[40] $7.3 billion[41][42] $6.9 billion[43] [44]
South Korea $9.64 billion[45] $9.23 billion[46] $9.082 billion[47][48] $7.784 billion[47][49] [50][51]
Australia $2 billion[52] $1.16 billion[53] $1.5 billion[53] $1.67 billion[54] [55]
Taiwan $825 million[54] $773 million[54] $713 million[54] $660 million[54] [56][57]
Indonesia $492 million[54] $463 million[54] $429 million[54] $396 million[54]
India $376 million[58] $347 million[59][60] $294 million[61] $181 million[54]
Europe $20 billion[62] $21.3 billion[63] $21.3 billion[63] $20.66 billion[63] [64]
United Kingdom $3.67 billion[65] $2.6 billion[66] $5.4 billion[67] $3.812 billion[54] [68]
France $6.9 billion[69] $4 billion[70] $3.352 billion[54] $3.416 billion[54] [71]
Germany $3.7 billion[72][73] $3.36 billion[74] $2.757 billion[54] $2.659 billion[54] [75]
Italy $1.961 billion[76] $1.85 billion[76] $1.428 billion[54] $1.371 billion[54] [77]
Russia $1.5 billion[78][79] $1.3 billion[80] $1.4 billion[54] $1.207 billion[54]
Netherlands $807 million[81] $807 million[81] $809 million[54] $801 million[54] [82]
North America $22.8 billion[83] $20.7 billion[63] $20.7 billion[63] $20.49 billion[63]
United States $17.39 billion[84] $17.1 billion[85] $16.6 billion[86] $18.58 billion[87]
Canada $2.3 billion[88] $2.773 billion[89] $2.171 billion[90] $1.682 billion[54] [91]
Latin America $3.9 billion[92] $5.4 billion[63] $5.4 billion[63] $4.74 billion[63]
Brazil $1.4 billion[92] $2 billion[93] $2 billion[93] $391 million[54]
Mexico $1.56 billion[93] $1.2 billion[93] $636 million[54] $1.25 billion[94] [95]
Middle East $2.6 billion[96] $2.6 billion[96] $1.4 billion[63] $1.2 billion[63]


History of worldwide video game industry revenues

See also: Video games in the United States for US figures and Video games in Japan for Japan figures

Worldwide video game industry revenues. It is difficult to estimate figures in many countries so some numbers may vary by a few billion dollars.

Year Video game industry revenue
(nominal US dollars, without inflation)
Inflation-adjusted revenue
(2012 US dollars)[97]
2013 $76 billion[62] $76 billion
2012 $63 billion[98][99] $63 billion
2011 $65 billion[100] $66.2 billion
2010 $62.7 billion[100] $65.9 billion
2009 $52.7-$60.4 billion[101] $56-$64.5 billion
2008 $54 billion [34] $57.5 billion
2007 $41.7 billion [35] $46.1 billion
2006 $31.6 billion [36] $36 billion
2005 $29 billion[102] $34.02 billion
2004 $31 billion[103] $37.7 billion
2003 $33.2 billion (worldwide)[104][105] $41.43 billion (worldwide)
2002

$37.6 billion (worldwide)

$31 billion (worldwide consumer market)[106][104][107][108]

$6.56 billion (Japan arcade market)[109]

$47.99 billion (worldwide)
2001

$30.1 billion (worldwide)

$23.6 billion (worldwide consumer market)[110][111]

$6.45 billion (Japan arcade market)[109]

$39.02 billion (worldwide)
2000

$25.2 billion (worldwide)

$17.25 billion (worldwide consumer market)[110][112]

$7.9 billion (Japan arcade market)[109]

$33.6 billion (worldwide)
1999

$31.8 billion (worldwide)

$15.8 billion (Japan)[109]

$10 billion (US)[113]

$6 billion (EU retail software)[114]

$43.9 billion (worldwide)

1998 $30 billion (worldwide estimate) [37] $42.2 billion (worldwide estimate)
1997 $18 billion (worldwide retail)[115] $26 billion (worldwide retail)
1996

$21.32 billion (US & Japan)

$14 billion (US total)[116]

$7.32 billion (Japan retail)[109][38]

$31.2 billion (US & Japan)

1995 $15 billion (worldwide retail) [38] $23 billion (worldwide retail)
1994

$29.3 billion (worldwide)

$20.8 billion (worldwide retail sales)[117]

$8.5 billion (US arcade & rentals)[113]

$45.4 billion (worldwide)
1993

$29.3 billion (worldwide)

$19.8 billion (worldwide retail sales)[117]

$9.5 billion (US arcade & rentals)[113]

$47 billion (worldwide)
1992

$13.95 billion (worldwide)

$9 billion (US arcade) [39]

$4.08 billion (Japan retail)[109]

$870 million (UK arcade)[118][119][120]

$23.124 billion (worldwide)

1991

$9.24 billion (US & Japan)

$6 billion (US total)[113]

$3.24 billion (Japan retail)[109]

$9.85 billion (US)
1990 $13 billion (worldwide retail, Nintendo with nearly 90% market share) [40] $23 billion (worldwide retail)
1989 $13.5 billion (worldwide retail)[121] $25 billion (worldwide retail)
1988

$12.71 billion (US & Japan)

$9.9 billion (US total)[113]

$2.81 billion (Japan retail)[109]

$24.67 billion (US & Japan)
1987

$3.21 billion (Japan & US retail)

$2.46 billion (Japan retail)[109]

$750 million (US retail) [41]

$6.5 billion (Japan & US retail)
1986 $4.43 billion (US)[113] $9.26 billion (US)
1985

$4.6 billion (US)[113]

$9.28 billion (US)
1984

$5.3 billion (US)[113]

$11.74 billion (US)
1983

$9.9 billion (US)[113]

$22.82 billion (US)
1982

$13.6-$16.4 billion (US & EU)

$12.8-$15.6 billion (US)[113]

$800 million (EU)[122]

$32-$39 billion (US & EU)

1981

$20-$35 billion (worldwide estimate) [42]

$10.5-$12.7 billion (US)[113]

$200 million (EU)[122]

$50-$88 billion (worldwide estimate)

1980

$7.614 billion (US)[113]

$21.22 billion (US)
1979

$1.88 billion (US)[113]

$5.95 billion (US)
1978

$1.02 billion  (Japan & US)

$600 million (Japan arcade cabinet sales of Space Invaders)[109]

$420 million (US market)[113]

$3.6 billion (Japan & US)
1977 $400 million (worldwide) [43] $1.5 billion (worldwide)
1976 $242 million (US retail market)[113] $977 million (US retail market)
1973 $40 million (US market)[113] $207 million (US market)

See also

References

  1. http://next-gen.biz/index.php?option=com_content&task=view&id=11156&Itemid=2
  2. http://www.pushsquare.com/1614/european-lifetime-system-sales-figures-249-million-ps2-80-million-psp-45-million-ps3/
  3. [1]
  4. http://arstechnica.com/news.ars/post/20080618-gaming-expected-to-be-a-68-billion-business-by-2012.html
  5. http://www.businessweek.com/innovate/content/aug2007/id20070813_120384.htm?chan=search
  6. [2]
  7. COMPANY NEWS; Sony Starts a Division To Sell Game Machines
  8. Market Place; Differing Views On Video Games (June 19, 1991)
  9. http://books.google.co.uk/books?ei=-DogT8i_I4TsOenhsbAO&id=kAseAQAAMAAJ
  10. http://books.google.co.uk/books?id=MfoHAQAAMAAJ&q=%22world+sales+estimated+at+usd%22&dq=%22world+sales+estimated+at+usd%22&hl=en&sa=X&ei=60keT5uhKc6GhQeWtZmBDg&ved=0CDMQ6AEwAA
  11. http://www.bls.gov/data/inflation_calculator.htm
  12. The Console Wars -- XMas 1990, YouTube
  13. http://www.intellivisionlives.com/bluesky/home.shtml
  14. http://books.google.co.uk/books?id=frYrAAAAYAAJ
  15. http://nl.newsbank.com/nl-search/we/Archives?p_product=PI&s_site=philly&p_multi=PI&p_theme=realcities&p_action=search&p_maxdocs=200&p_topdoc=1&p_text_direct-0=0EB29715971BCAA2&p_field_direct-0=document_id&p_perpage=10&p_sort=YMD_date:D&s_trackval=GooglePM
  16. http://books.google.co.uk/books?id=frYrAAAAYAAJ
  17. http://books.google.co.uk/books?id=XjAEAAAAMBAJ&pg=PA16
  18. http://www.bls.gov/data/inflation_calculator.htm
  19. http://www.gamasutra.com/php-bin/news_index.php?story=19914
  20. http://www.cinemablend.com/games/PC-Game-Sales-Top-18-6-Billion-2011-40337.html
  21. [3]
  22. http://www.twice.com/article/CA6556315.html
  23. http://archive.salon.com/tech/feature/2000/06/14/love/print.html]
  24. [http://www.videogamesblogger.com/2007/06/27/global-videogame-sales-surpass-music-industry-in-2007.htm
  25. http://www.slyck.com/story1436_MPAA_Reports_Record_Movie_Sales_in_2006]
  26. [http://www.abc.net.au/news/stories/2008/03/06/2181568.htm
  27. http://www.bisg.org/news/press.php?pressid=42
  28. http://www.usatoday.com/life/movies/news/2008-01-07-dvd-sales-slippage_N.htm
  29. http://www.gamedaily.com/articles/news/report-game-sales-blow-past-music-in-uk/?biz=
  30. Asia, 2006: $14 billion
  31. Japan, 2013
  32. Overview of Capcom’s Business and Outlook for the Future, 2012 Report, June 2013:
    • Arcade - ¥661.3 billion (¥487.5 billion operation, ¥173.8 equipment) = $8.68 billion
  33. Smartphones not 'hurting' gaming consoles: Study, The Times of India, 17 September 2013:
  34. Japan, 2011
  35. Japan, 2010
  36. $20 billion (2008)
  37. Sambe, Yukiharu (2009). "Japan’s Arcade Games and Their Technology". Lecture Notes in Computer Science. Entertainment Computing– ICEC 2009 5709: 338. Error: Bad DOI specified. http://www.springerlink.com/content/tkv51714762l3645/. Retrieved 25 January 2012.
  38. 38.0 38.1 [4] [5] [6]
  39. http://www.hollywoodreporter.com/news/china-2013-video-game-market-668542
  40. [7] [8] [9] [10]
  41. http://kotaku.com/what-about-companies-like-spicy-horse-that-moved-to-sha-1491520578
  42. $6 billion (PC) (2011) [11]
  43. China, 2010: CN¥44.6 billion = $6.9 billion
  44. China, 2008: $3.916 billion
  45. ₩10 trillion = $9.64 billion
  46. South Korea, 2012: ₩9.752 trillion = $9.23 billion
  47. 47.0 47.1 http://www.slideshare.net/hibigogo/review-of-the-global-game-market-2011-and-forecast-of-2012
  48. http://www.kocca.kr/knowledge/publication/indu/__icsFiles/afieldfile/2012/10/30/BW3rWbGbtuvJ.pdf
  49. http://www.kocca.kr/knowledge/publication/indu/__icsFiles/afieldfile/2012/10/30/BW3rWbGbtuvJ.pdf
  50. South Korea, 2007: ₩5143.6 billion = $5.71 billion
  51. South Korea, 2002: $130.17 million
  52. Grand Theft Auto 5 best selling game in Australia in 2013
  53. 53.0 53.1 Australian game industry sees $1.16 billion in sales in 2012
  54. 54.00 54.01 54.02 54.03 54.04 54.05 54.06 54.07 54.08 54.09 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 Video Games, Entertainment Business, 2012
  55. $1.3 billion (2008)
  56. $76.68 million (2002)
  57. Chou, Yuntsai (Fall 2003). "G-commerce in East Asia: Evidence and Prospects". Journal of Interactive Advertising 4 (1). Archived from the original on 2013-01-19. http://web.archive.org/web/20130119102219/http://jiad.org/article43. Retrieved 31 January 2012.
  58. 20 billion Indian rupees = $376 million
  59. 15 billion Indian rupees = $347 million
  60. http://www.mcvuk.com/news/read/indian-video-games-industry-grew-16-in-2012/
  61. 13 billion Indian rupees = $294 million
  62. 62.0 62.1 Lisa Galarneau, 2014 Global Gaming Stats: Who’s Playing What, and Why?, Big Fish Games
  63. 63.00 63.01 63.02 63.03 63.04 63.05 63.06 63.07 63.08 63.09 63.10 LU-CIX Key Facts and Trends on the Ever- Changing Global Games Market, Newzoo (October 18, 2012)
  64. $18.9 billion (2007)
  65. £2.19 billion = $3.67 billion
  66. £1.598 billion = $2.6 billion
  67. £3.226 billion = $5.4 billion
  68. $5.59 billion (2008)
  69. €5 billion = $6.9 billion
  70. €3 billion = $4 billion
  71. $4.05 billion (2008)
  72. http://www.newzoo.com/insights/europes-largest-games-market-germany-grows-5-3-7bn-2013/
  73. €2.66 billion = $3.67 billion
  74. €2.5 billion = $3.36 billion
  75. $3.8 billion (2008)
  76. 76.0 76.1 http://www.slideshare.net/Newzoo/newzoo-italian-games-market-summary-report-2012
  77. $1 billion (2007)
  78. Eastern European & Russian Game Markets
  79. [http://www.gamasutra.com/blogs/UlyanaChernyakXsolla/20140213/210800/Russian_Video_Game_Industry_2013_Overview.php Russian Video Game Industry 2013 Overview ]
  80. Report: Gaming market in Russia reached $1.3 billion in 2012
  81. 81.0 81.1 €600 million = $807 million
  82. $1.89 billion (2008)
  83. Global Games Market to Grow 6% to $70.4bn in 2013, Newzoo
  84. US, 2013
  85. US, 2012
  86. NPD 2011 sales figures
  87. http://www.cnbc.com/id/41062675/Video_Game_Sales_Drop_6_in_2010_Second_Year_of_Declines
  88. http://theesa.ca/wp-content/uploads/2013/10/Essential-Facts-English.pdf
  89. Canada, 2012
  90. Canada, 2011
  91. $2.09 billion (2008)
  92. 92.0 92.1 http://www.gamesindustry.com/brazil-leading-latin-americas-3-9-billion-digital-games-industry/
  93. 93.0 93.1 93.2 93.3 http://www.lai.com/en/latin-american-game-market-mexico-brazil
  94. http://www.vgchartz.com/article/84570/an-introduction-to-the-video-game-market-in-mexico/
  95. $1 billion (2008)
  96. 96.0 96.1 http://www.wixelstudios.com/arabian-abou-ahmad-demo/
  97. CPI Inflation Calculator. Bureau of Labor Statistics. Retrieved on 2012-02-22.
  98. Reuters
  99. http://www.pwc.com/gx/en/global-entertainment-media-outlook/segment-insights/video-games.jhtml
  100. 100.0 100.1 Reuters
  101. [14] [15] [16]
  102. [17][18]
  103. [19] [20] [21]
  104. 104.0 104.1 FCJ-025 Precarious Playbour: Modders and the Digital Games Industry
  105. [22] [23]
  106. Rivalry in Video Games
  107. [24] [25]
  108. UK, 2002: £2 billion = $3.36 billion
  109. 109.0 109.1 109.2 109.3 109.4 109.5 109.6 109.7 109.8 109.9 Video games in Japan
  110. 110.0 110.1 Chou, Yuntsai (Fall 2003). "G-commerce in East Asia: Evidence and Prospects". Journal of Interactive Advertising 4 (1). Archived from the original on 2013-01-19. http://web.archive.org/web/20130119102219/http://jiad.org/article43. Retrieved 31 January 2012.
  111. http://articles.latimes.com/2001/sep/10/business/fi-44135
  112. [26] [27] [28]
  113. 113.00 113.01 113.02 113.03 113.04 113.05 113.06 113.07 113.08 113.09 113.10 113.11 113.12 113.13 113.14 113.15 NPD sales figures
  114. [29] [30]
  115. GameCase - Home Video-game industry (1983-1996)
  116. $8 billion arcade, $6 billion retail
  117. 117.0 117.1 [31]
  118. In 1992, the game (Street Fighter II) captured 60% of the UK coin-op market, with individual machines taking up to £1000 per week, for an estimated total of £260 million per year.
  119. Interview with David Snook, editor of Coin Slot, published in Mega (magazine), issue 10, page 18, July 1993
  120. £434 million = $870 million in 1992
  121. [32] [33]
  122. 122.0 122.1 http://2600connection.com/library/magazines/spectrum/spectrum_dec82.pdf

External links

White papers
Video game industry
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