Post by Stuff on Jul 20, 2006 19:21:56 GMT -5
The Hollywood Reporter
Posted on June 21, 2006
NEW YORK -- By 2010, the worldwide video game market should grow to $46.5 billion, at an average 11.4% compound annual rate, global consultancy PricewaterhouseCoopers predicts.
That compares with the filmed entertainment business, which PwC estimates will grow at a 5.3% compound annual rate, to become a $104 billion market by 2010, or the television networks business expected to grow at a 6.6% rate to $227 billion.
The estimated $8.4 billion U.S. video game market of 2005 likely will grow at a slower clip than other sectors, at 8.9%, to hit $13 billion in 2010, lagging Asia Pacific and the combined region of Europe, the Middle East and Africa, according to PwC's "Global Entertainment and Media Outlook: 2006-2010."
Asia Pacific should hold its leadership position in terms of overall spending on games. Despite its existing magnitude, the region should grow even faster than the U.S. for the same period, PwC reports, bringing a $9.8 billion market in 2005 to $17.4 billion by 2010, a 12.3% compound annual increase.
Increased broadband access and computer literacy, government spending to promote local game development and consumption will help drive the increases in Asia, PwC said.
EMEA will lead the globe in terms of video game growth at a 13% compound annual rate through 2010 reaching a $13.9 billion market size, up from $7.6 billion last year.
The only market that the U.S. likely will outpace in terms of industry growth, including Canada, is Latin America -- today a fledgling market for video games at $531 million, but expected to reach $835 million by 2010 -- set for a 9.5% compound annual gain.
Stefanie Kane, a partner at PwC's Entertainment & Media practice, said "pent-up demand" for new consoles and software that takes advantage of next-generation features will drive the gaming growth globally.
Despite what bloggers and consumer magazines are calling the "sticker shock" associated with expensive, next-generation consoles, namely Sony Corp.'s PlayStation 3 that will be priced at $599, console and portable gaming devices again should dominate the market in the U.S. and globally, Kane said.
Sales of console and hand-held games (not including wireless or mobile games) should comprise $7.9 billion by 2010, up more than 31% from $6 billion last year.
Kane said titles that are best poised to top the charts worldwide based on historical sales trends are those that "build off a movie title, sport or a franchise that has already been built up."
In terms of game categories, which include console and hand-held, online, wireless, and PC games, in the U.S. PwC expects wireless to grow the fastest -- 28.6% -- ballooning from a $646 million market last year to $2.3 billion by 2010. That would be more than triple the rate for the overall video game market in the country.
In the Asia Pacific market, wireless and online games are expected to grow at about the same rate (23% compounded annually) with online games reaching $4.4 billion and wireless reaching $4.2 billion by 2010.
According to the PwC report, what is behind the rapid wireless growth is the support of carriers and advanced technology of new-generation phones. Almost all new phones are Internet enabled, thereby enhancing the potential for downloading games. In the U.S., carriers have abandoned the practice of embedding games in phones for free which, according to the PwC report, should encourage consumers to buy games via their handsets regularly.
The Hollywood Reporter
Posted on June 21, 2006
NEW YORK -- By 2010, the worldwide video game market should grow to $46.5 billion, at an average 11.4% compound annual rate, global consultancy PricewaterhouseCoopers predicts.
That compares with the filmed entertainment business, which PwC estimates will grow at a 5.3% compound annual rate, to become a $104 billion market by 2010, or the television networks business expected to grow at a 6.6% rate to $227 billion.
The estimated $8.4 billion U.S. video game market of 2005 likely will grow at a slower clip than other sectors, at 8.9%, to hit $13 billion in 2010, lagging Asia Pacific and the combined region of Europe, the Middle East and Africa, according to PwC's "Global Entertainment and Media Outlook: 2006-2010."
Asia Pacific should hold its leadership position in terms of overall spending on games. Despite its existing magnitude, the region should grow even faster than the U.S. for the same period, PwC reports, bringing a $9.8 billion market in 2005 to $17.4 billion by 2010, a 12.3% compound annual increase.
Increased broadband access and computer literacy, government spending to promote local game development and consumption will help drive the increases in Asia, PwC said.
EMEA will lead the globe in terms of video game growth at a 13% compound annual rate through 2010 reaching a $13.9 billion market size, up from $7.6 billion last year.
The only market that the U.S. likely will outpace in terms of industry growth, including Canada, is Latin America -- today a fledgling market for video games at $531 million, but expected to reach $835 million by 2010 -- set for a 9.5% compound annual gain.
Stefanie Kane, a partner at PwC's Entertainment & Media practice, said "pent-up demand" for new consoles and software that takes advantage of next-generation features will drive the gaming growth globally.
Despite what bloggers and consumer magazines are calling the "sticker shock" associated with expensive, next-generation consoles, namely Sony Corp.'s PlayStation 3 that will be priced at $599, console and portable gaming devices again should dominate the market in the U.S. and globally, Kane said.
Sales of console and hand-held games (not including wireless or mobile games) should comprise $7.9 billion by 2010, up more than 31% from $6 billion last year.
Kane said titles that are best poised to top the charts worldwide based on historical sales trends are those that "build off a movie title, sport or a franchise that has already been built up."
In terms of game categories, which include console and hand-held, online, wireless, and PC games, in the U.S. PwC expects wireless to grow the fastest -- 28.6% -- ballooning from a $646 million market last year to $2.3 billion by 2010. That would be more than triple the rate for the overall video game market in the country.
In the Asia Pacific market, wireless and online games are expected to grow at about the same rate (23% compounded annually) with online games reaching $4.4 billion and wireless reaching $4.2 billion by 2010.
According to the PwC report, what is behind the rapid wireless growth is the support of carriers and advanced technology of new-generation phones. Almost all new phones are Internet enabled, thereby enhancing the potential for downloading games. In the U.S., carriers have abandoned the practice of embedding games in phones for free which, according to the PwC report, should encourage consumers to buy games via their handsets regularly.
The Hollywood Reporter
