US Entertainment and Games Software Industry Reaches $10 Billion

Strategic Insights -

The US entertainment and games software industry is a significant contributor to the country's economy, with approximately 220 companies generating combined annual revenue of around $10 billion. The industry is dominated by major players such as Activision Blizzard, Electronic Arts, Microsoft Game Studios, Take-Two Interactive, and THQ, as well as the US gaming divisions of Nintendo and Sony. The industry's profitability depends on factors like consumer needs, timely product development, and effective marketing, with large companies leveraging economies of scale in manufacturing, marketing, and distribution.

Key Takeaways:

  • The US entertainment and games software industry comprises around 220 companies with combined annual revenue of approximately $10 billion.
  • Major companies in the industry include Activision Blizzard, Electronic Arts, Microsoft Game Studios, Take-Two Interactive, and THQ, as well as the US gaming divisions of Nintendo and Sony.
  • Demand for entertainment and games software is driven primarily by personal income and gamer demographics.
  • The profitability of individual companies in the industry depends on an understanding of consumer needs, timely product development, and effective marketing.
  • The industry is highly competitive, with console software generating around 75 percent of industry revenues.
  • The handheld segment includes titles for portable gaming systems, while the personal computer segment includes games designed for use with desktop and laptop PCs.
  • Computer Weekly News editors prepared this article based on reports from staff and other sources.

Statistics:

  • The US entertainment and games software industry includes approximately 220 companies with combined annual revenue of around $10 billion.
  • Major companies in the industry account for significant market share, with Activision Blizzard, Electronic Arts, and Microsoft Game Studios among the top players.
  • Console software generates around 75 percent of industry revenues, while handheld devices account for 15 percent, and personal computers account for 10 percent.
  • The industry's demand is driven primarily by personal income (75 percent) and gamer demographics (25 percent).
  • The industry competes with other forms of electronic and non-electronic entertainment, such as TV, movies, music, and the Internet.

Sources:

  • Research and Markets (http://www.researchandmarkets.com/research/0d97ee/entertainment_and)
  • Computer Weekly News editors (via VerticalNews.com)