Video game industry

From Video Game Sales Wiki

Region	Revenue (in billions USD)
Worldwide	$41.9B (2007)
United States	$21.33B (2008)
Europe	$17.9B (2007)^[1]
Asia	$14B (2006)
Japan	$6.26B (2008) ^[2]
United Kingdom	$5.59B (2008) ^[3]
Germany	$3.8B (2008)^[4]
France	$4.05B (2008)^[5]
Canada	$2.09B (2008)^[6]
Netherlands	$1.89B (2008)^[7]
Korea	$1.7B (2008) ^[8]
Mexico	~$1B (2008)^[9]
China	~$2.75 (2008)^[10]
Australia	$1.3B (2008)^[11]
Italy	~$1B (2007)^[12]

European market^[13]

United States video game revenues (2008)

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.^[14]

See also Worldwide market in 2008 (revenues)

[edit] Worldwide game industry

Worldwide, the game industry in 2007 was about $41.9 billion.^[15] This number is expected to grow 9.1% annually to $48.9 in 2011 and $68 billion in 2012, making it fastest-growing component of the media sector worldwide.^[16]^[17] In 2004, the industry generated more than $25.4 billion.^[18] Over a decade ago, the industry was just $7 billion (1994)^[19] $4.7 billion (1990).^[20] A decade before that in 1982, $1.5 billion of revenue was generated in the nascent market^[21], just before the video game crash of 1983. 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.^[22]By 2015, analysts predict the global video game industry will reach $91 billion.^[23]

[edit] United States game industry

Main article: Video games in the United States

According to NPD sales data, the United States video game industry grew 43% to a "record-shattering" $17.9 billion in 2007 plus $910.7 million in PC game sales.^[24] 2008 is expected to see a large increase in sales to around $24 billion. Since 2005's record $10.5B to 2008's expect $24B, the industry has seen remarkable growth of 150% in just 4 years. Online gaming is commonplace with video game subscriptions accounting for more than $1 billion in revenues.^[25] Sales figures for 2007 state that PC gaming (excluding online subscriptions and digital downloads) is a $910.7 million industry, about 14% of all game sales. This compares with $6.6 billion of console software sales and $2.0 billion for handheld software sales.^[26]

Major American developers and publishers include Microsoft, Electronic Arts, Activision, Take-Two, and THQ.

Graph from DFC Intelligence showing region pieces from worldwide totals (2003)

[edit] Europe game industry

Main article: Video games in Europe

The European game industry, with a population of roughly 731 million people, is third largest behind the American and Asian markets. Altogether, Europe generates $17.9 billion USD a year (using 2007 data)^[27] United Kingdom ($3.35B USD)^[28], France ($3.12B USD)^[29] and Germany make up the 3 largest video game countries in Europe.^[30] Major European developers and publishers include Ubisoft and Vivendi Games, both of French origin.

[edit] Japan and Asia game industry

Main article: Video games in Japan

The Asian continent delivered $14 billion USD in revenue to the global game industry in 2006, a number that is expected to grow to $23 billion by 2009.^[31] The Japanese market (127m people) has slumped in recent years since its peak in 2000 when the PS2 launched. This is in contrast to the booming American market which has seen record growth. The 2008 fiscal year saw a growth of 3.8% to 710.4 billion yen or about $7 billion, but this number is down from 2001's $13.25 billion USD and 2004's $8.26B.^[32] According to Media Create sales data, that 2008 figure is expected to fall to $6.6 billion in the coming years due to hardware saturation and declined demand for next-gen consoles. Online gaming is a growing market with $3.1 billion forecasted for 2010. By 2009, there will be 230 million mobile gamers spending more than $5 billion in Asia.^[33] PC gaming hardly exists and mobile games reach $1 billion. Online gaming is healthy, but pales compared to other Asian countries.^[34]

The Chinese market of nearly USD 900 million is expected to be worth more than USD 6 billion by 2010.^[35] The growing China game industry has more than 27 million gamers and Nico Partners predicts there will be 60 million by 2010 consuming $1.8 billion of online games. Internet cafes are gathering places for teens and casual gaming is prevalent, especially with females.^[36] The online gaming business is estimated at $2.75 billion in 2008.^[37]

Korea is dominated by online games with revenue to reach $844 million by 2009.^[38]

Major Japanese developers and publishers include Nintendo, Sony Computer Entertainment, Sega, Square-Enix, Capcom, Namco-Bandai and Konami.

2002-2007 comparison of various entertainment industries

NPD Video games annual revenues

[edit] 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 billion (US)^[39] and $30 to $40 billion globally ^[40]^[41]
Movie industry - $9.5 billion (US)^[42] and $27 billion globally.^[43]
Book industry - $35.69 billion (US 2007) ^[44] and roughly $63 billion globally (2002) (Euromonitor Intl)
DVD industry - $23 billion (US)^[45] (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.^[46]

[edit] History of video game industry

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	Game industry	Source
2009
2008	$54 billion	[10]
2007	$41.7 billion	[11]
2006	$31.6 billion	[12]
2005	$29 billion	[13][14]
2004	$25.4 billion - $31 billion	[15][16][17]
2003
2002	$27 billion - $30 billion	[18][19]
2001	$20 billion	[20]
1999	$20 billion	[21]
1997	$18 billion	[22]
1993	$13 billion (Nintendo with 90% market share)	[23]
1982	$1.5 billion - $2 billion	[24][25]
1981	$5 billion (Arcades)	[26]

[edit] See also

[edit] References

[edit] External links

Gamasutra: Analyzing World Markets
Video game industry vs Hollywood
Broadband rules in rapidly expanding global video game market
Worldwide Video Game Sales Hit $32 Billion in '08, Top DVD, Blu-ray for First Time (doesn't include hardware sales figures)
Worldwide market in 2008 (revenues) (NeoGAF)
Analysis: The U.S. Game Industry - How Bad Is It? (June 2009)
Used video games market at $2.1 billion (June 2009)

White papers

File:GameCase - Home Video-game industry (1983-1996).pdf - The Home Video-Game Industry (1983-1996) - Competitive Strategy Revolving around Industry Standards
File:Computer and video games ELSPA white paper.pdf - Computer and video games: a British phenomenon around the world
Adese 2008 sales figures

Video game industry
Sales trends · Holidays · Price cuts · Launch price · Market research · Fiscal reports · Video game costs · Video game delays · Leaks Dev kit · Attach rate · Gaming conventions · Recession · Rumors · Sales bumps · Casual and hardcore games · Game piracy · Grey market · Controversies · Developer disputes · Video game research · Game development

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[18] COMPANY NEWS; Sony Starts a Division To Sell Game Machines

[19] Market Place; Differing Views On Video Games (June 19, 1991)

[20] ttp://www.intellivisionlives.com/bluesky/home.shtml

[21] ttp://www.gamasutra.com/php-bin/news_index.php?story=19914

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[23] ttp://www.gamasutra.com/php-bin/news_index.php?story=17006

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[26] ttp://www.forbes.com/home/2008/06/18/ubisoft-game-assassin-tech-innovationeu08-cx_mji_0618ubisoft.html

[27] ttp://www.gamedaily.com/articles/news/report-game-sales-blow-past-music-in-uk/?biz=

[28] ttp://www.newswiretoday.com/news/33025/

[29] ttp://www.forbes.com/home/2008/06/18/ubisoft-game-assassin-tech-innovationeu08-cx_mji_0618ubisoft.html

[30] ttp://www.ida.gov.sg/News%20and%20Events/20050704144250.aspx?getPagetype=20

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[32] ttp://www.ida.gov.sg/News%20and%20Events/20050704144250.aspx?getPagetype=20

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[34] ttp://www.city-interactive.com/en/o-firmie-en/history.html

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