Global outlook for the video game industry
VIDEO GAMES: Global market
July 22, 2003
Excerpted from the PricewaterhouseCoopers Entertainment and Media Outlook: 2003-2007, Global Overview.
For the purposes of this forecast, the video game market is defined in terms of spending on console games, PC games, online games, and wireless games. Spending is limited to the purchase of video game software and does not include the purchase of consoles or other hardware used for playing games.
Market size and growth by region
The global video game market will expand from $21.2 billion in 2002 to $35.8 billion in 2007, growing at an 11% compound annual rate. Although starting from a very low base, Latin America and Canada will be the fastest-growing regions during the forecast period, each of them expanding by a 16.1% compound annual rate. Spending in Latin America will increase from $148 million in 2002 to $312 million in 2007, and Canada will expand to $1.2 billion in 2007 from $575 million in 2002.
Asia/Pacific, home to two of the major console manufacturers, was the world's largest video game market in 2002, with spending of $8.4 billion. Further growth will push the region to $12.6 billion by 2007, an 8.5% compound annual gain. The U.S. market will expand to $12.3 billion by 2007, nearly matching Asia/Pacific, from $7.2 billion in 2002, with growth averaging 11.3% annually. EMEA will expand from $4.9 billion in 2002 to $9.3 billion in 2007, for 13.8 percent average annual growth.
Principal drivers
Through 2004, console platforms introduced in 2000 and 2001 will stimulate video game spending. Next-generation consoles, expected in 2006 -- 07, will reinvigorate the market and result in 2007 growth exceeding 20% in each region. Rising broadband access will stimulate online video gaming, while new game-capable cell phones will boost the wireless game market. PC games will lose market share during the forecast period.
Movies are providing a popular source for game titles, and games are sometimes developed to coincide with a film's release in theaters or on home video, providing a cross-media promotional boost. Franchises, such as Pokemon and Super Mario Brothers, also help drive spending.
To download a sneak preview of the Global Overview of the Entertainment and Media Outlook: 2003-2007, North America in PDF format, click here. (Requires Acrobat Reader)
For the purposes of this forecast, the video game market is defined in terms of spending on console games, PC games, online games, and wireless games. Spending is limited to the purchase of video game software and does not include the purchase of consoles or other hardware used for playing games.
Market size and growth by region
The global video game market will expand from $21.2 billion in 2002 to $35.8 billion in 2007, growing at an 11% compound annual rate. Although starting from a very low base, Latin America and Canada will be the fastest-growing regions during the forecast period, each of them expanding by a 16.1% compound annual rate. Spending in Latin America will increase from $148 million in 2002 to $312 million in 2007, and Canada will expand to $1.2 billion in 2007 from $575 million in 2002.
Asia/Pacific, home to two of the major console manufacturers, was the world's largest video game market in 2002, with spending of $8.4 billion. Further growth will push the region to $12.6 billion by 2007, an 8.5% compound annual gain. The U.S. market will expand to $12.3 billion by 2007, nearly matching Asia/Pacific, from $7.2 billion in 2002, with growth averaging 11.3% annually. EMEA will expand from $4.9 billion in 2002 to $9.3 billion in 2007, for 13.8 percent average annual growth.
Principal drivers
Through 2004, console platforms introduced in 2000 and 2001 will stimulate video game spending. Next-generation consoles, expected in 2006 -- 07, will reinvigorate the market and result in 2007 growth exceeding 20% in each region. Rising broadband access will stimulate online video gaming, while new game-capable cell phones will boost the wireless game market. PC games will lose market share during the forecast period.
Movies are providing a popular source for game titles, and games are sometimes developed to coincide with a film's release in theaters or on home video, providing a cross-media promotional boost. Franchises, such as Pokemon and Super Mario Brothers, also help drive spending.
To download a sneak preview of the Global Overview of the Entertainment and Media Outlook: 2003-2007, North America in PDF format, click here. (Requires Acrobat Reader)
| The PricewaterhouseCoopers Entertainment and Media Outlook: 2003-2007, North America (with Global Overview) is available for $495; the "Global Overview" can be purchased separately for $95 (www.pwc.com/thr). Purchase the book and receive six free months of the Hollywood Reporter.com; or purchase the Global Overview only and receive a free one-month online subscription. |
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