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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] The worldwide video game industry generated a revenue of $116 billion in 2017.[2]

See also Worldwide market in 2008 (revenues).

Overview

European market

European market (2008)[3]

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)

Japan Inflation-Adjusted Revenues

Japanese video game industry revenues from 1982 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

The worldwide the game industry in 2007 was valued at $44.9 billion.[4] 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.[5][6] In 2004, the worldwide industry generated more than $25.4 billion.[7]

Over a decade before, the US retail video game market was worth $7 billion (1994)[8] and $4.7 billion (1990) before that.[9] This period coincided with the arcade renaissance, when US arcades generated $7 billion in 1994,[10] 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,[11] equivalent to over $32 billion with 2012 inflation.[12] By 1990, over 40% of gamers were adults and over 30% of gamers were female.[13]

A decade before that in 1982, $1.5 billion of revenue was generated from console sales in the nascent US home video game market,[14] just before the video game crash of 1983. The total US console market was worth $3.8 billion in 1982.[15] This period coincided with the golden age of arcade video games, which generated annual US revenues of $8 billion from arcade quarters in 1981[16] and 1982.[17] 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,[18] equivalent to over $88 billion with 2012 inflation.[19]

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.[20] In 2011, the PC game market increased to $18.6 billion, largely due to the rise of the $6 billion Chinese PC gaming market.[21] By 2015, analysts predict the global video game industry will reach $91 billion.[22]

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)[23] and $30 to $40 billion globally [24][25]
  • Movie industry - $9.5 billion (US)[26] and $27 billion globally.[27]
  • Book industry - $35.69 billion (US 2007) [28] and roughly $63 billion globally (2002) (Euromonitor Intl)
  • DVD industry - $23 billion (US)[29] (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.[30]

Worldwide industry revenues

Worldwide video game industry revenues as of 2017:

Video game industry – $108.9 billion[31]

  1. Digital content – $100.5 billion[32]
  2. Physical sales – $14.6 billion[2]
  3. Interactive media – $11.2 billion[32]

Gaming sectors:[32]

  1. Mobile gaming – $46.1 billion[31]
    1. Smartphones – $35.3 billion
    2. Tablets – $10.8 billion
  2. Console gaming – $33.5 billion[31]
    1. Digital content – $21.9 billion[2]
    2. Physical sales – $11.4 billion[2]
  3. PC gaming – $29.3 billion[31]
    1. Digital content (free-to-play) – $20 billion[32]
    2. Digital content (premium) – $6.2 billion[32]
    3. Physical sales – $3.2 billion[2]
  4. Interactive media – $11.2 billion[32]
    1. eXtended Reality (XR) – $4 billion
    2. Gaming video content (GVC) – $3.2 billion
    3. eSports – $800 million

Largest markets

Largest gaming markets as of 2017:

  1. China China – $36.3 billion[33]
  2. United States United States – $25.06 billion[31]
  3. Japan Japan – $19.61 billion[34]
    1. Consumer market – $14.5 billion
    2. Arcade market – $5.11 billion
  4. European Union European Union – $19.558 billion[35]
    1. United Kingdom United Kingdom – $4.4 billion[36]
    2. Germany Germany – $4.378 billion[31]
    3. France France – $2.967 billion[31]
    4. Spain Spain – $2 billion[37]
    5. Italy Italy – $2 billion[38]
  5. South Korea South Korea – $5 billion[39]

Continents by video game revenue in 2017:

  1. Asia – $59.003 billion[35]
  2. Americas – $31.4 billion[31]
  3. Europe – $22.2 billion[31]
  4. Oceania – $1.314 billion[35]
  5. Africa – $741 million[35]

Regions by video game revenue in 2017:

  1. East Asia – $52.115 billion[35]
  2. North America – $27 billion[31]
  3. Western Europe – $18.8 billion[31]
  4. Latin America – $4.4 billion[31]
  5. Middle East – $3.451 billion[31][35][40]
  6. Eastern Europe – $3.4 billion[31]
  7. Southeast Asia – $3.238 billion[35]
  8. Southern Asia – $1.498 billion[35]
  9. Oceania – $1.314 billion[35]
  10. Africa – $741 million[35]

The largest PC gaming markets:

  1. China China – $13.1 billion (2016)[41]
  2. United States United States – $5.3 billion (2017)[42]
  3. South Korea South Korea – $2.34 billion (2016)[43]
  4. Japan Japan – $1.8 billion (2015)[2]
  5. Germany Germany – $1.4 billion (2015)[2]
  6. United Kingdom United Kingdom – $800 million (2016)[44]
  7. Russia Russia – $600 million (2016)[45]

History of regional industry revenues

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

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

Region / Country 2013 2012 2011 2010 Note(s)
Asia-Pacific $49.623 billion $44.063 billion $42.358 billion $38.77 billion
Japan $22.29 billion $22.29 billion $23.04 billion $21.13 billion [46]
China $14 billion[47] $9.8 billion[48] $7.3 billion[49][50] $6.9 billion[51] [52]
South Korea $9.64 billion[53] $9.23 billion[54] $9.082 billion[55][56] $7.784 billion[55][57] [58]
Australia $2 billion[59] $1.16 billion[60] $1.5 billion[60] $1.67 billion[61] [62]
Taiwan $825 million $773 million $713 million $660 million [61][63]
Indonesia $492 million $463 million $429 million $396 million [61]
India $376 million[64] $347 million[65][66] $294 million[67] $230 million[68]
Europe $20 billion[69] $21.3 billion[70] $21.3 billion[70] $20.66 billion[70] [71]
United Kingdom $3.67 billion[72] $2.6 billion[73] $5.4 billion[74] $3.812 billion[61] [75]
France $6.9 billion[76] $4 billion[77] $3.352 billion[61] $3.416 billion[61] [78]
Germany $3.7 billion[79][80] $3.36 billion[81] $2.757 billion[61] $2.659 billion[61] [82]
Italy $1.961 billion[83] $1.85 billion[83] $1.428 billion[61] $1.371 billion[61] [84]
Russia $1.5 billion[85][86] $1.3 billion[87] $1.4 billion[61] $1.207 billion[61]
Netherlands $807 million[88] $807 million[88] $809 million[61] $801 million[61] [89]
North America $22.8 billion[90] $20.7 billion[70] $20.7 billion[70] $20.49 billion[70]
United States $17.39 billion[91] $17.1 billion[92] $16.6 billion[93] $18.58 billion[94]
Canada $2.3 billion[95] $2.773 billion[96] $2.171 billion[97] $1.682 billion[61] [98][99]

[100]

Latin America $3.9 billion[101] $5.4 billion[70] $5.4 billion[70] $4.74 billion[70]
Brazil $1.4 billion[101] $2 billion[102] $2 billion[102] $391 million[61]
Mexico $1.56 billion[102] $1.2 billion[102] $636 million[61] $1.25 billion[103] [104]
Middle East $2.6 billion[105] $2.6 billion[105] $1.983 billion $1.2 billion[70] [106]
Arab World $1.31 billion[107] $1.31 billion[107]
Turkey $593 million[108] $593 million[108] $50 million[61]
Israel $89 million $85 million $80 million $76 million [61]


History of worldwide video game industry revenues

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

Worldwide video game industry revenues.

Year Video game industry revenue
(nominal US dollars, without inflation)
Inflation-adjusted revenue
(2012 US dollars)[109]
2017 $108.9 billion[31] $108.9 billion
2013 $76 billion[69] $76 billion
2012 $63 billion[110][111] $63 billion
2011 $65 billion[112] $66.2 billion
2010 $62.7 billion[112] $65.9 billion
2009 $60.4 billion (worldwide)[113] $64.5 billion (worldwide)
2008

$67.48 billion (worldwide)

$54 billion (worldwide retail market)[114]

$13.48 billion (Japan arcade & online)[46]

$72.22 billion (worldwide)
2007

$61.34 billion (worldwide)

$49.4 billion (worldwide retail)[114][115]

$11.94 billion (Japan arcade & online)[46]

$67.92 billion (worldwide)
2006

$42.51 billion (worldwide)

$31.63 billion (worldwide retail)[115][116]

$10.88 billion (Japan arcade & online)[46]

$48.41 billion (worldwide)
2005

$37.64 billion (worldwide)

$29 billion (worldwide consumer market)[117]

$8.64 billion (Japan arcade market)[46]

$44.25 billion (worldwide)
2004

$44.88 billion (worldwide)

$33.52 billion (worldwide consumer market)[118][119]

$7.86 billion (Japan arcade market)[46]

$3.5 billion (US arcade market)[120]

$54.55 billion (worldwide)
2003 $33.2 billion (worldwide)[121][122] $41.43 billion (worldwide)
2002

$37.84 billion (worldwide)

$31 billion (worldwide consumer market)[123][121][124][125]

$6.84 billion (Japan arcade & online)[46]

$48.29 billion (worldwide)
2001 $35 billion (worldwide)[126][127] $45.4 billion (worldwide)
2000

$36.17 billion (worldwide)

$28.8 billion (worldwide consumer market)[128][129][130]

$7.37 billion (Japan arcade market)[46]

$48.23 billion (worldwide)
1999

$39.44 billion (worldwide)

$16.74 billion (Japan)[46]

$16.7 billion (US)[120]

$6 billion (EU retail software)[131]

$54.35 billion (worldwide)

1998 $30 billion (worldwide estimate) [27] $42.2 billion
(worldwide estimate)
1997

$25.85 billion (worldwide)

$18 billion (worldwide retail)[132]

$7.85 billion (Japan arcade)[133]

$36.98 billion (worldwide)
1996

$44 billion (worldwide)

$26 billion (worldwide arcade market)[134]

$18 billion (worldwide retail market)[135]

$64.39 billion (worldwide)

1995

$29.32 billion (worldwide)

$15 billion (worldwide retail) [28]

$9.52 billion (Japan arcade)[136]

$4.8 billion (US arcade)[120]

$44.17 billion (worldwide)
1994

$29.3 billion (worldwide)

$20.8 billion (worldwide retail sales)[137]

$8.5 billion (US arcade & rentals)[120]

$45.4 billion (worldwide)
1993

$29.3 billion (worldwide)

$19.8 billion (worldwide retail sales)[137]

$9.5 billion (US arcade & rentals)[120]

$47 billion (worldwide)
1992

$27.915 billion (worldwide)

$18.045 billion (worldwide retail)[138]

$9 billion (US arcade) [29]

$870 million (UK arcade)[139][140][141]

$46 billion (worldwide)

1991

$12.73 billion (US & Japan)

$8.1 billion (US total)[120]

$4.63 billion (Japan retail)[46]

$21.46 billion (US & Japan)
1990

$17.9 billion (worldwide)

$13 billion (worldwide retail, Nintendo with nearly 90% market share) [30]

$4.9 billion (US arcade)[120]

$31.44 billion (worldwide)
1989

$19.9 billion (worldwide)

$13.5 billion (worldwide retail)[142]

$6.4 billion (US arcade)[120]

$36.85 billion (worldwide)
1988

$13.86 billion (US & Japan)

$9.9 billion (US total)[120]

$3.96 billion (Japan retail)[46]

$26.9 billion (US & Japan)
1987

$4.45 billion (Japan & US retail)

$3.7 billion (Japan retail)[46]

$750 million (US retail) [31]

$8.99 billion
(Japan & US retail)
1986

$8.71 billion (US & Japan)

$4.43 billion (US)[120]

$4.28 billion (Japan retail)[46]

$18.25 billion (US & Japan)
1985

$7.21 billion (US & Japan)

$4.6 billion (US)[120]

$2.61 billion (Japan retail)[46]

$15.38 billion (US & Japan)
1984

$6.82 billion (US & Japan)

$5.3 billion (US)[120]

$1.52 billion (Japan retail)[46]

$15.07 billion (US & Japan)
1983

$11.65 billion (US & Japan)

$9.9 billion (US)[120]

$1.75 billion (Japan retail)[46]

$26.86 billion (US & Japan)
1982

$17.73 billion (worldwide)

$15.6 billion (US)[120]

$1.33 billion (Japan retail)[46]

$800 million (EU)[143]

$42.18 billion (worldwide)

1981 $20-35 billion (worldwide estimate)[144] $50-88 billion
(worldwide estimate)
1980

$7.614 billion (US)[120]

$21.22 billion (US)
1979

$1.88 billion (US)[120]

$5.95 billion (US)
1978

$1.8 billion (US & Japan)

$1.2 billion (US)[120]

$600 million (Japan arcade cabinet sales of Space Invaders)[46]

$6.34 billion (Japan & US)
1977 $400 million (worldwide) [32] $1.5 billion (worldwide)
1976 $242 million (US retail)[120] $977 million (US retail)
1975 $22 million (US retail)[120] $94 million (US retail)
1973 $40 million (US)[120] $207 million (US)

See also

References

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  2. 2.0 2.1 2.2 2.3 2.4 2.5 2.6 https://www.gamesindustry.biz/articles/2017-12-20-gamesindustry-biz-presents-the-year-in-numbers-2017
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  23. http://www.twice.com/article/CA6556315.html
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  31. 31.00 31.01 31.02 31.03 31.04 31.05 31.06 31.07 31.08 31.09 31.10 31.11 31.12 31.13 31.14 https://www.slideshare.net/Newzoo/newzoo-global-games-market-report-2017
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  36. https://newzoo.com/insights/countries/united-kingdom/
  37. https://newzoo.com/insights/countries/spain/
  38. https://newzoo.com/insights/countries/italy/
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  40. https://www.statista.com/statistics/500046/gaming-revenue-countries-middle-east-africa/
  41. https://www.gamesindustry.biz/articles/2017-07-05-chinese-games-market-is-the-worlds-biggest-at-USD25-6bn
  42. https://newzoo.com/insights/articles/xbox-one-x-microsoft-fights-back-booming-console-market/
  43. https://technology.ihs.com/592232/games-market-monitor-korea-pc-online-games-market-2016
  44. https://newzoo.com/insights/infographics/the-uk-games-market-2016/
  45. https://newzoo.com/insights/infographics/russian-games-market-2016/
  46. 46.00 46.01 46.02 46.03 46.04 46.05 46.06 46.07 46.08 46.09 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 Video games in Japan
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  51. China, 2010: CN¥44.6 billion = $6.9 billion
  52. China, 2008: $3.916 billion
  53. ₩10 trillion = $9.64 billion
  54. South Korea, 2012: ₩9.752 trillion = $9.23 billion
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  58. South Korea, 2007: ₩5143.6 billion = $5.71 billion
  59. Grand Theft Auto 5 best selling game in Australia in 2013
  60. 60.0 60.1 Australian game industry sees $1.16 billion in sales in 2012
  61. 61.00 61.01 61.02 61.03 61.04 61.05 61.06 61.07 61.08 61.09 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 Video Games, Entertainment Business, 2012
  62. $1.3 billion (2008)
  63. $76.68 million (2002)
  64. 20 billion Indian rupees = $376 million
  65. 15 billion Indian rupees = $347 million
  66. http://www.mcvuk.com/news/read/indian-video-games-industry-grew-16-in-2012/
  67. 13 billion Indian rupees = $294 million
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  70. 70.0 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 LU-CIX Key Facts and Trends on the Ever- Changing Global Games Market, Newzoo (October 18, 2012)
  71. $18.9 billion (2007)
  72. £2.19 billion = $3.67 billion
  73. £1.598 billion = $2.6 billion
  74. £3.226 billion = $5.4 billion
  75. 2008: £4 billion = $8.2 billion
  76. €5 billion = $6.9 billion
  77. €3 billion = $4 billion
  78. $4.05 billion (2008)
  79. http://www.newzoo.com/insights/europes-largest-games-market-germany-grows-5-3-7bn-2013/
  80. €2.66 billion = $3.67 billion
  81. €2.5 billion = $3.36 billion
  82. $3.8 billion (2008)
  83. 83.0 83.1 http://www.slideshare.net/Newzoo/newzoo-italian-games-market-summary-report-2012
  84. $1 billion (2007)
  85. Eastern European & Russian Game Markets
  86. Russian Video Game Industry 2013 Overview
  87. Report: Gaming market in Russia reached $1.3 billion in 2012
  88. 88.0 88.1 €600 million = $807 million
  89. $1.89 billion (2008)
  90. Global Games Market to Grow 6% to $70.4bn in 2013, Newzoo
  91. US, 2013
  92. US, 2012
  93. NPD 2011 sales figures
  94. http://www.cnbc.com/id/41062675/Video_Game_Sales_Drop_6_in_2010_Second_Year_of_Declines
  95. http://theesa.ca/wp-content/uploads/2013/10/Essential-Facts-English.pdf
  96. Canada, 2012
  97. Canada, 2011
  98. $2.09 billion (2008)
  99. $746 million (2003)
  100. $1 billion 2002)
  101. 101.0 101.1 http://www.gamesindustry.com/brazil-leading-latin-americas-3-9-billion-digital-games-industry/
  102. 102.0 102.1 102.2 102.3 http://www.lai.com/en/latin-american-game-market-mexico-brazil
  103. http://www.vgchartz.com/article/84570/an-introduction-to-the-video-game-market-in-mexico/
  104. $1 billion (2008)
  105. 105.0 105.1 http://www.wixelstudios.com/arabian-abou-ahmad-demo/
  106. Middle East, mobile game market
    • 2007: $200 million
    • 2006: $100 million
  107. 107.0 107.1 ¥100 billion = $1.31 billion
  108. 108.0 108.1 ¥45 billion = $593 million
  109. CPI Inflation Calculator. Bureau of Labor Statistics. Retrieved on 2012-02-22.
  110. Reuters
  111. http://www.pwc.com/gx/en/global-entertainment-media-outlook/segment-insights/video-games.jhtml
  112. 112.0 112.1 Reuters
  113. [11] [12] [13]
  114. 114.0 114.1 [Sales Age Worldwide market in 2008 (revenues)]
  115. 115.0 115.1 http://arstechnica.com/gaming/2008/06/gaming-expected-to-be-a-68-billion-business-by-2012/
  116. http://www.businessweek.com/innovate/content/aug2007/id20070813_120384.htm
  117. http://web.archive.org/web/20080121072803/http://www.dfcint.com/wp/?p=170
  118. Report Predicts $58.4 Billion Games Market (October 23, 2005)
  119. [14] [15] [16] [17]
  120. 120.00 120.01 120.02 120.03 120.04 120.05 120.06 120.07 120.08 120.09 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 Video games in the United States
  121. 121.0 121.1 FCJ-025 Precarious Playbour: Modders and the Digital Games Industry
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  125. UK, 2002: £2 billion = $3.36 billion
  126. http://books.google.co.uk/books?id=Dz4dEG3UsJYC&pg=PA164
  127. http://articles.latimes.com/2001/sep/10/business/fi-44135
  128. International Expansion of the Japanese Content Industry
  129. 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.
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  134. Developing Games For Coin-Op (June 19, 1997)
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  137. 137.0 137.1 [24]
  138. £9 billion = $18.045 billion
  139. 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.
  140. Interview with David Snook, editor of Coin Slot, published in Mega (magazine), issue 10, page 18, July 1993
  141. £434 million = $870 million in 1992
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  143. http://2600connection.com/library/magazines/spectrum/spectrum_dec82.pdf
  144. http://books.google.co.uk/books?id=XjAEAAAAMBAJ&pg=PA16


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