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Report: Total U.S. Game Spend To Hit $24.7B In 2010
Report: Total U.S. Game Spend To Hit $24.7B In 2010
December 20, 2010 | By Kris Graft

December 20, 2010 | By Kris Graft
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A Monday report from market research firm Newzoo said total consumer game spend in the U.S. -- not including hardware, just games -- was $24.7 billion, down 2 percent from 2009.

While game spend was just short of flat year-on-year, the more interesting development is where gamers are spending their money.

"Our data shows consumers are not simply moving away from console games, but spreading their budget across more platforms," said Newzoo managing director Peter Warman.

"Their choice of game genre and platform depends on time, place, social setting and the need they are seeking to satisfy at that moment," he added.

Newzoo said U.S. gamers will have spent $10.6 billion, or 43 percent of total U.S. game spend, on console games (including DLC and handhelds) in 2010, 29 percent less than 2009. PC and Mac boxed game sales were down 19 percent year-on-year to $2.1 billion.

Meanwhile, every single other category has seen double-digit percentage sales growth, including games for mobile devices, MMOs, casual game portals, social networks and PC and Mac downloads.

In the UK, total game spend in 2010 is estimated to be 3.7 billion ($5.7 billion), Newzoo said, down 3 percent. The data [PDF] comes from the firm's Total Consumer Spend 2010 report, releasing in January next year.

newzoo_2010spend.jpg


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Comments


Thomas Nocera
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My expectation is that better figures will come in 2011 unless there is a collapse of the economy due to runaway inflation. More specifically I am predicting a significant turnaround for consoles sales in 2011 based on the late 2010 introduction of large screen 3D monitors whose current prices are certain to soon begin to trend downward, coupled with the popularity of the Kinect whose technology will combine in 2011 to open exciting new doors for game development. I also foresee the highly compelling nature of 3D games with Kinect to arrive in 2011 to become quite enticing to non-traditional gamers to include baby boomers whose rationalization will be the exercise both physical and mental that those games can provide - as well as new game entries targeting the educational game market segment.

Kris Morness
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This is really putting how the industry is changing into perspective. I do worry that consoles are going to have a difficult time next year even if the economy recovers.



As a gamer that buys a lot of games, I too have seen my dollars migrate in these directions. I barely buy console games anymore, except for the must-haves.

Peter Warman
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Thanks Kris. Let me know if you have any specific datapoints you would find interesting. Cheeta, Peter warman

Kris Morness
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Yeah, I want to know how my game is going to do before we launch :)



On a more serious note, what kind of purchases do casual game portals represent? I play a lot of games on sites like kongregate, but I don't really see much opportunity for people to monetize there.

Peter Warman
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Hi Kris, your game will do fine! Harvest Circuit? Casual game portal spend consists of buying and downloading premium games (e.g. bigfishgames.com), skill-gaming (e.g. King.com), online subscriptions (e.g. zylom.com), credits (e.g. wildgames.com, gamepoint.com). Most big casual destinations have a mix of the above. These portals have been around for a long while and have optimized their conversion and enjoy mass audiences. Depending how important advertising is in heir business model the consumer bizz models are more or less present.

Kris Morness
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Yep, that's us!



Wow, that's a whole world of games I know little about. I've vaguely heard of king.com before but the rest I've never heard of. I suppose pogo.com fits into this group?



Really surprised it's 2.5x bigger than social gaming. Think the two groups will sort of blend eventually?

Peter Warman
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I agree with Thomas. There Will be a console rebound or rather a living room or entertainment room rebound with motion control, surround sound and 3D expanding the experience. Portable consoles Will struggle if they do not find way to compete with the "free2play" bizz model of iPods, phones and tablets. Still console companies should prepare themselves for serious competition entering THE living room soon.... Apple and Google....

Thomas Nocera
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Thanks Peter for supporting my upbeat outlook for 2011.


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