Web, Mobiles And iTV Move Into Fast-Growing Gaming Market
The gaming market is set to enjoy its best year ever, with three 128-bit consoles launched in all major markets and with software sales to increase, according to The Dynamics of Games: A Global Boom Industry, a new forward-looking report from Informa Media Group.
The report forecasts that worldwide retail revenues will exceed $31 billion, with $20 billion coming from software sales and rentals. Nearly 70% – or $22 billion – of the $31 billion total will be attributable to the console sector. However, consoles will face increased competition from emerging sectors, such as online, mobile and interactive TV, as the table and graph show.
| Global Games Market Value by Sector (%) | ||||
| 2001 | 2002 | 2006 | 2010 | |
| Console Hardware | 25.9 | 26.3 | 19.3 | 9.8 |
| Console Software | 40.1 | 43.3 | 31.3 | 22.9 |
| Handheld Hardware | 7.3 | 6.2 | 6.1 | 2.8 |
| Handheld Software | 9.4 | 8.0 | 6.6 | 3.6 |
| PC Software | 16.0 | 13.5 | 10.9 | 6.7 |
| Online | 0.6 | 1.1 | 6.2 | 12.2 |
| Interactive TV | 0.3 | 0.6 | 7.9 | 18.4 |
| Mobile | 0.4 | 1.1 | 11.7 | 23.7 |
| Total ($ billion) | 27.8 | 31.2 | 30.1 | 38.1 |
| Source: Informa Media Group | ||||
Online gaming Informa says that many operators, ranging from telcos to cable MSOs, are planning (or already offering) pay-per-play or subscription services. Moves by the console manufacturers to provide online services will also boost the market and the spread of broadband networks will be the biggest boost to the sector, predicts the report.
There will be 7.3 million paying internet games players by the end of 2002. Nearly all of these subscribers will be in North America and Asia, particularly, South Korea – where a high level of broadband internet penetration has boosted the online games sector.
However, pay-per-play and subscription revenues are only estimated to generate revenues of $328 million in 2002, with the sector really taking off from 2005. By 2010, there will be 56.7 players worldwide, creating revenues of $4.7 billion. By 2010, North America will have revenues of $1.9 billion and Asia Pacific $1.8 billion – or 80% of the total revenues combined, says Informa.
Mobile gaming The move towards 2.5G and 3G devices (which have the capacity to offer many more services than previous generations of mobile phones) will drive the mobile games market, says the report.
From a slow start, the mobile games market is due to rocket, especially from 2005 when more than $1 billion will be added to the combined subscription and pay-per-play revenues each year. By 2010, the 743 million paying players will create revenues of $9 billion. The US will provide $1 billion of the total and the Asia Pacific region $4.1 billion.
Interactive TV “The main technological factor driving iTV games is the introduction of digital television. The UK leads the world in digital television rollout and it is no surprise therefore that it also leads the way in iTV games,” reads the report.
Global games revenues for interactive TV are forecast to climb from only $73 million in 2001 to $7 billion by 2010. The majority of the growth will occur after 2006 when broadband networks become more commonplace. Revenues for the 128 million users will be almost equally divided between Europe, North America and Asia Pacific by 2010.
Consoles Global console hardware sales are forecast to reach a peak of 44.0 million in 2002, with 22.7 million going to the PlayStation 2 alone. Console hardware retail revenues will peak in 2002 by reaching $8.2 billion.