According to market intelligence firm Strategy Analytics, the current global video game software market stands at $46.5 billion (as of 2009), but that figure is expected to jump up considerably in just a few years. By 2013, the firm believes global game software revenues will reach $64.9 billion.
Strategy Analytics' report, “Global Video Game Market Forecast,” notes that consumers will not only spend more on physical game software, but digital downloads and other online sources of revenue such as online subscriptions, in-game advertising and sales of virtual goods will all factor heavily into the expanding marketplace. Online game revenues are forecast to rise at a compound annual growth rate (CAGR) of 18.7% to reach $24.8 billion by 2013; that means the online sector will experience the most growth, accounting for more than 38% of total video game software revenues.
The social gaming revolution, led by companies like Zynga, Playfish and Playdom, will be a huge component of online growth. Strategy Analytics believes that sales of virtual goods in social games will be the "predominant growth category over the next five years." Also, the Asia Pacific market is expected to dominate these virtual goods sales, but North America and Western Europe will experience faster growth.
“Strategy Analytics predicts more revenue growth from online sources instead of from traditional physical game sales as broadband adoption continues, which is similar to other media sectors. More gaming devices and games are being connected online and new online revenue models are appearing on the market,” said Martin Olausson, Director of Digital Media Research at Strategy Analytics.
Jia Wu, Analyst in the Strategy Analytics Digital Media Strategies (DMS) service and author of the report, added, “New online revenue streams, such as in-game dynamic advertising and sales of virtual goods, will spur rapid growth in online game revenues in the coming years.”
3 Comments
4 months ago
I have a Ethical search engine marketing company. I am always in search of strategies of marketing. But this article is very helpful for me. Its strange article about marketing and providing strange marketing policy. By the way its very beneficial for me. Thanks for sharing this useful article.
3 months ago
mobile broadband will need to really improve so that games can be downloaded a lot quicker. this will help online game sales
2 months ago
Thanks for providing the details about this fact,i m pretty much sure that it will improve more within 1 or 2 years.
Nick from Franking Machine
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