Video Games Industry Driven by Online as Digital Delivery Comes to the Fore

The video games industry across the USA and Western Europe will witness steady growth through to 2015, reaching $15.7 billion and €10.2 billion respectively in total retail value, according to a new Console, Handheld and PC Gaming report from Futuresource Consulting.

Across both regions, the packaged games market will start to witness a slow decline in value throughout the forecast period, but this decline will be offset by the growth in online and mobile gaming with online being most significant.

The rise in online gaming is thought to be spreading the popularity of gaming as an activity across a wider demographic, driven by the adoption of free app based games, casual online games and gaming subscription services. This is impacting negatively on consumer spend in the traditional packaged games sector, with a 15% and 12% decline expected in 2012 in the USA and Western Europe respectively as current consoles mature and smartphone, tablet and online gaming continue to gain in prominence.

The retail value of online games is expected to hit $6 billion in 2015 in the USA, a rise from $3 billion in 2011, and in Western Europe value is expected to reach €3 billion in 2015, rising from €1.5 billion in 2011.

The anticipated launch of new consoles, including Sony Playstation 4, Microsoft Xbox 720 and Nintendo Wii U in late 2012 and late 2013 are expected to support packaged media and will provide a much-needed boost for console manufacturers and publishers alike, with the industry hoping to attract lapsed users and provide a brief reprise for packaged games.

However, a slow decline will follow as few users will replace existing devices as gaming needs are increasingly being satisfied with non-dedicated gaming products, and digital delivery begins to fulfil the role of catalogue sales.