Report forecasts strong video game market growth
The EMEA region’s video game market is projected to grow by 6.9 percent annually from 2008 to 2013
According to a PricewaterhouseCoopers report on the ‘Global Entertainment and Media Outlook 2009-2013’, the EMEA region’s video game market is projected to grow by 6.9 percent annually from 2008 to 2013. Whilst the console, online and wireless games market is forecast to have the strongest growth; the PC game market is predicted to decline in size.
The report suggests that the EMEA video game market will grow from $18.1 billion in 2008 to $25.3 billion in 2013. The global video game market will grow from $51.4 billion in 2008 to $73.5 billion in 2013 (a 7.4 percent compound annual rate).
The EMEA console and handheld game market will continue to be the largest segment of the market, increasing by 6.2 percent annually from $10.7 billion in 2008 to $14.5 billion in 2013.
The region’s online video game market will be spurred on by increased broadband penetration in households and the current generation of consoles promoting the online experience. Online games – helped by both casual games and MMOGs (massively multiplayer online games) – will increase from $2.4 billion in 2008 to $4.1 billion in 2013. The wireless games market will increase from $2.1 billion to $3.4 billion, whilst PC game sales will dip from $2.6 billion to $2.4 billion, a 1.1 percent annual decrease.
Consumer spending on video games will grow by 6.6 percent on an annual basis from $17.7 billion in 2008 to $24.5 billion in 2013, whilst video game advertising in the region will grow from $400 million to $800 million.
The report suggests that the key drivers for the growth will be the current generation of consoles – the Wii, Xbox 360 and Playstation 3. The continued success of the latest handheld devices of the Nintendo DS and Playstation Portable (PSP) will further prop up growth. The report further suggests that by 2012, the next generation of consoles will have been introduced, which will generate renewed growth in console games
The video games report concludes that although the PC game market will continue to deteriorate, the purchase of a PC game is often the requirement for entry into the world of MMOGs. Video game advertising is also emerging as an additional revenue stream, and the growth of the online game market will fuel growth in dynamic in-game advertising.