World Video Games market is forecast to maintain a CAGR in excess of 7.5% over the 2001-2012 analysis period and exceed US$61.9 billion by 2012, according to Global Industry Analysts. Console Video Games dominate the global market for Video Games, with a share estimated at 54% in 2007. In terms of growth, however, Online Video Games are forecast to surpass all other segments, with a projected CAGR of 24.60% over 2001-2012.
The market for video games follows a cyclical trend wherein, high sales are recorded when new consoles are launched followed by a period of slump, when software sales sustain the market. Video game consoles are high priced products, the sales of which virtually push up the market. Additionally, new console launches are followed by introduction of new game titles the sales of which, add to the overall growth in video games market.
Console manufacturers slash hardware prices to boost volume sales especially during lean off-peak season. This is likely to effect console hardware sales in terms of value. However, manufacturers expect to recover losses on hardware from greater console software sales.
Pent-up demand for new software and consoles integrated with next-generation features is driving the growth of gaming market across the globe. Functionality upstaged the development centers, mirroring the progressive trend towards powerful and entertaining games. Sales of video games, worldwide, are outshining ticket sales at the box office. This phenomenal growth of video games is attributed to rising popularity of massively multiplayer online games (MMOGs) and the recent launches of next-generation video game consoles with enhanced features, power, and blazing performance aspects. These gaming consoles were developed and released by three leading console companies, Microsoft, Sony, and Nintendo. Additionally, extensive multiplayer online games have revolutionized the global video gaming market.
http://www.strategyr.com/Video_Games_Market_Report.asp
Originally posted on February 27, 2008 @ 6:41 am