Video Game Industry Expected to Reach $26 Billion in 2010

Strategic Insights -

The video game industry is poised for significant growth, with forecasts indicating that sales will reach $26 billion by 2010. This represents a substantial increase from the $18 billion in sales recorded in 2004. Three independent scenarios for industry growth have been outlined by DFC Intelligence, with a best-case scenario for each of the Sony PlayStation 3, Nintendo Revolution, and Microsoft Xbox 360. All scenarios indicate that sales will surpass the $25 billion level by 2008.

Key Takeaways:

  • DFC Intelligence forecasts that video game sales will reach $26 billion by 2010, up from $18 billion in 2004.
  • The Sony PlayStation 3 is expected to have strong sales under all three scenarios, with DFC president David Cole attributing the company's success to the PlayStation 2's record-breaking sales.
  • Microsoft and Nintendo are expected to increase their market share in the next generation, despite the strong sales of the Sony PlayStation 3.
  • The video game industry will continue to evolve with the next generation of console systems, which will connect to broadband networks and expand revenue possibilities.
  • The industry has room for all three major systems, with DFC Intelligence predicting a future of maximized profits across different platforms.

Statistics:

  • $26 billion: Forecasted sales of the video game industry by 2010.
  • $18 billion: Sales of the video game industry in 2004.
  • $25 billion: Level of sales expected to be surpassed by 2008 under all three scenarios.
  • 10 years: Forecasted period of growth for the video game industry.

Sources:

  • DFC Intelligence: "Forecasts Indicate Video Game Sales Will Reach $26 Billion by 2010".
  • David Cole: President of DFC Intelligence.
  • M2 Communications Ltd: Distributed via M2 Communications (http://www.m2.com).