Gamasutra is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Gamasutra: The Art & Business of Making Gamesspacer
NPD: Behind the Numbers, December 2008
View All     RSS
September 25, 2020
arrowPress Releases
September 25, 2020
Games Press
View All     RSS







If you enjoy reading this site, you might also want to check out these UBM Tech sites:


 

NPD: Behind the Numbers, December 2008


January 19, 2009 Article Start Previous Page 5 of 5
 

 

Conclusion: Historic Annual Industry Revenue

The industry has grown a tremendous amount in the past three years. It's true that the final total in 2008 did not reach the heights of $22-25 billion that many had thought possible.

But it must be stressed that the industry is still experiencing double digit growth, and has reason to be optimistic about the coming year.

This is even despite Gamasutra's additional analysis of 2008 numbers that shows only 10% year on year growth in the second half of 2008, the slowest since the first half of 2006.

To conclude, here's our in-depth graphical look at how the industry has grown from 2005 to 2008, with color-coded bars for each month.

It's easy to see the rapid growth of the industry via the following diagram:

Industry Revenue 2005-2008

At the end of 2008, the total installed base of current-generation consoles exceeded 38 million. That works out to roughly one console for each eight persons in the United States.

With that kind of penetration, the industry has a solid base on which to build future software sales - but not such a large penetration yet that growth might start becoming problematic.

To end, here's a Gamasutra-compiled graph showing the historical U.S. game industry revenues since 1997, plotted yearly:

Industry Revenue 1997 - 2008

As recently as 2004, the entire video game business in the United States was worth only $9.9 billion annually. Within four years, that figure has doubled.

While the industry may not break $25 billion in annual sales for 2009, given current economic conditions, it seems quite likely that it will do so by the end of 2010.

[As always, many thanks to the NPD Group for its monthly release of the videogame industry data. Additional credit is due to Mr. Michael Pachter, analyst for Wedbush Morgan Securities, for his industry analysis. Further thanks to colleagues at NeoGAF for helpful discussions, including Joshua J. Slone, donny2112, and several others.]


Article Start Previous Page 5 of 5

Related Jobs

Remedy Entertainment
Remedy Entertainment — Espoo, Finland
[09.25.20]

Development Director
Remedy Entertainment
Remedy Entertainment — Espoo, Finland
[09.25.20]

Senior Development Manager (Xdev Team)
Remedy Entertainment
Remedy Entertainment — Espoo, Finland
[09.25.20]

Senior Cinematic Scripter
Deep Silver Volition
Deep Silver Volition — Champaign, Illinois, United States
[09.24.20]

Senior Engine Programmer





Loading Comments

loader image