The Video Gaming Industry Outlook10 Jun 2011 • by Natalie Aster
Business Insights forecasts that the global video gaming market (including both hardware and software segments) will grow at a CAGR of 5.1% during the period 2009–14. Software revenues will contribute the majority share, while hardware revenues will post a CAGR of 0.2% during the forecast period.
The online gaming segment is rapidly gaining traction, and is gradually taking over the PC and console gaming segments. Business Insights forecasts that the online gaming market will post a CAGR of 13.9% over the period 2009–14.
Social gaming is the fastest growing segment of online gaming, posting a CAGR of 27.2% in 2009–14, followed by casual gaming and MMO (Massively multi-player online) gaming. However, MMO gaming is the largest revenue contributor to online gaming in 2009.
The report “The Video Gaming Industry Outlook” by Business Insights examines developments across the rapidly evolving video gaming industry. It discusses the emergence of new gaming platforms, provides market sizing and forecasting by segments and geography, underlines the demographic shift and emergence of new video gaming sectors and technologies, and provides actionable insight with regards how to best approach this fast-changing market.
Published: May 2011
Price: US$ 2,875
Report Sample Abstract
Transport dominates emissions
Mobile apps hold the key for mobile gaming growth
As shown in Figure 10 below, free and paid-for mobile apps downloads are forecasted to grow globally from 1.35 billion in 2009 to 18.7 billion by the end of 2014, posting a CAGR of 69%. Video gaming apps accounted for more than 50% of downloaded apps across platforms in 2010. Notably, Apple drove most of this growth with the App Store accounting for 70% of total downloads during 2010. However, as the popularity of Google’s Android OS grows, iOS share will likely decline to 30% by 2014.
Major monetization methods in casual games
In-game and around-game advertising are the two major monetization methods in casual gaming. In-game ads include advertisements placed inside the game. Mochi, IGN and AdscapeMedia are some of the key service providers. Around-game ads are placed either around the game window, or as pre-rolls or post roll ads. The prices are based on either cost per impression (CPM) or cost per action (CPA) basis.
Trial-to-purchase / game downloads / Access
Here, publishers offer a trial version of game and encourage gamers to migrate to the paid full version, at prices ranging from $3 to $25. Around 1.5% of gamers who play trial versions are converted through this method.
Major social and casual games developers
Zynga is the largest social games developer and publisher, producing popular game titles including CityVille, FarmVille, Texas Hold’em Poker, Mafia Wars, and BlackJack. The company distributes its games through multiple platforms such as the iPhone and social networking sites including Facebook, Yahoo, and MySpace.
It is the largest third party developer on Facebook with about 280 million monthly active users. Zynga provides free to play games on these platforms and generates revenues from selling virtual goods or game credits within the games. In the US, it also sells virtual currency prepaid cards through retailers such as Best Buy and Target.
Serious games are video games that are designed to aid learning processes and develop specific skills. These games are used in emergency services training, military training, corporate education, health care, and many other walks of life. They are also used in schools and universities. Globally, serious gaming was estimated to be worth around $1.7bn in revenues in 2010, and is expected to increase to $2bn by 2014. Other clientele include global companies who equip these games with 3D graphics and use them in recruitment, training and more efficient coordination of remote staff.
An example of a serious game used by executives is EVE Online, a subscription based online game. The theme of this game is setting up a virtual corporation and running it in such a way that it becomes a market leader. The game is very popular with CEOs, senior executives, MBAs and economists as it teaches them how to manage a virtual corporation.
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