Electronic Games and Gaming

Report Highlights

• The value of worldwide shipments of electronic gaming equipment reached $12.6 billion in 2005. Shipments are projected to grow in value at a 9.7% rate to reach $13.8 billion in 2006, and at an average annual rate of 9.8%, to reach $22.1 billion by 2011.
• The value of handheld consoles reached $4.2 billion in 2005 and is projected to grow at a 10.9% rate to reach $4.7 billion by 2006, and at an average annual rate of 9% to reach $7.2 billion by 2011.
• The value of games and software for computer platforms amounted to $3.4 billion in 2005 and is projected to grow at an 8.7% rate to reach $3.7 billion by 2006; it will then grow at an average annual rate of 15.25 to reach $7.5 billion by 2011.
• The mobile wireless market represents the fastest growing segment for games and software. Their value for this platform will grow at an average annual rate of 23.5% to reach $2.8 billion in 2011.

INTRODUCTION

Electronic gaming is a rapidly growing popular pastime for many people worldwide. Game consoles have become powerful computer-like devices and are touted to be electronic media centers as well. Handheld consoles are also powerful devices that enable top electronic game performance at a distance. Electronic games are plentiful through computers, either installed on a system or downloaded from the Internet. Wireless handheld devices, such as cell phones, are also sources of electronic games, and arcade machines are the traditional way of presenting games.

The report examines the current position of electronic gaming in each of these platforms. We also examine game development and software for each platform and the accompanying accessories and services needed for each.

SCOPE OF STUDY

This report contains:

• Information on high-tech game consoles that play electronic games from television, DVDs, and the Internet; handheld consoles that perform the same functions from a distance; personal computers that play a variety of games from their hard drives or downloaded from the Internet; the latest cell phones that can download games; and the age-old arcade machines that still play video games in public locations
• The value of the global electronic gaming industry, including manufacturing capability and consumption by various regional markets and a five-year forecast to 2011
• An Analysis of industry involvement, standards, and other pertinent factors related to the success of electronic gaming.
• Reviews of market drivers and the impact of new technologies.

METHODOLOGY

BCC presents an analysis, for each gaming platform, of the number of unit shipped in 2005. Estimated value is what manufacturers have paid in undepreciated 2006 dollars. Then, based on BCC surveys, it analyzes the potential market for each industry and forecasts shipments for 2006 and then for 2011. The report also analyzes the shipments and value of games and software plus accessory equipment and services.

INFORMATION SOURCES

BCC surveyed approximately 100 companies to obtain data for this study. Included were console, computer, mobile device, cell phone and arcade manufacturers, developers of a variety of electronic games, distributors of games, makers of electronic accessories, and service organizations. BCC also spoke with companies that make the integrated circuits and displays for these platforms. Research also included various laboratories and companies that engage in electronic and visual research. In addition, BCC compiled data from current financial and trade information and government sources.