Monday, June 29, 2009

Games will see strong growth over Next 3 years

Game publishers should be able to grow revenues 9 percent a year in the U.S. and Europe as they embrace digital content and find ways to extend the consumption of games for the current generation of game consoles, a new report says.
The market for console game software is expected to grow at a compound annual growth rate of 9 percent from 2009 to 2011, while hardware revenues will decline 25 percent a year due to falling prices, according to Michael Pachter and Edward Woo, the analysts who created the report for Wedbush Morgan Securities. All other entertainment is expected to grow zero to 2 percent in the same time frame, the report says. That’s a bullish report, given that game industry growth has turned negative in the past few months as the recession slows down demand

The 210-page report details the size of the game industry as well as major trends within it and how they affect startups trying to find opportunities in the digital content portion of the game industry. As such, it provides some good insight into several game-industry issues I discussed in one of our most popular posts about the game business.

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