Research Suggests Software to Outpace Hardware in 2011

July 6, 2011 -

According to new research data from Gartner Inc., an estimated $74 billion will be spent on gaming on 2011, delivering - by year's end - a 10 percent increase over 2010 numbers. The firm also estimates that two-thirds of that money will be spent on software. By 2015 that number will grow to $112 billion.

“As the popularity of smartphones and tablets continues to expand, gaming will remain a key component in the use of these devices," said principal research analyst Tuong Nguyen. "Mobile games are the most downloaded application category across most application stores. For this reason, mobile gaming will continue to thrive as more consumers expand their use of new and innovative portable connected devices."

The data comes from a new report called "Market Trends: Gaming Ecosystem 2011." It also predicts that software will lead hardware in sales for 2011, with online following suit. When micro-transactions and subscriptions from online games are included, they estimate a compound annual growth rate of 27 percent through 2015.

"We find that subscription fees are giving way to ‘freemium’ models, in which the game is provided for free to gamers but is monetized through advertising (both in-game advertising and display advertising) and in-game micro-transactions, such as the sale of value-added services or virtual-good purchases,” noted research director Brian Blau. “This trend is prevailing given the rise of social gaming, in which online gaming is connected to social networking sites and social networking platforms.”

We're not sure if this report takes into account new hardware from Nintendo and Sony, but it's an interesting set of predictions.

Source: Industry Gamers


 
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Matthew Wilsonthe thing is in japan holidays do not drive sales, and x/y came out everywhere on October 12th last year. This is Nintendo thinking japan is more important than the rest of the world, and that has not been true since the early 2000s.09/14/2014 - 5:49pm
InfophileA glitch in SSB 3DS is causing players to get banned for using Peach: http://www.polygon.com/2014/9/14/6147417/report-glitch-serves-up-one-day-bans-for-smash-bros-players-who-pick09/14/2014 - 4:28pm
Jessy Hart@ZippyDSMlee Hopefully!09/14/2014 - 11:32am
Neeneko@Infophile - as someone who dealt with release schedules, holidays and other releases are just the begining ^_^09/14/2014 - 11:23am
ZippyDSMleeJessy Hart:I am sure they will be back as DLC...09/14/2014 - 10:31am
Jessy HartI miss the Ice Climbers :(09/14/2014 - 9:55am
InfophileSimultaneous worldwide releases aren't as simple as they seem. Different places have different holidays, plus different other releases to contend with. So a little bit of staggering makes business sense09/14/2014 - 3:25am
MaskedPixelantehttp://www.joystiq.com/2014/09/13/excavated-et-cartridges-will-be-sold-distributed-to-museums/ Alamogordo is going to be selling off a bunch of the games from the Atari Graveyard.09/13/2014 - 9:02pm
Matthew Wilsonnintendo should have done a world wide release for smash. The game is all over twitch.09/13/2014 - 12:47pm
ZenYeah, I got a set of codes yesterday and have been enjoying the heck out of it. Limited characters...but it is a demo lol. Glad there is no play limit though which...well...FINALLY. Now, any ideas why it tracks the coins?09/13/2014 - 10:48am
Andrew EisenThe verbiage was "select Platinum members" so yeah, if it's not a random sampling, the other requirements are hidden. Still, everyone gets the demo next week.09/13/2014 - 10:39am
MaskedPixelanteThere appears to be some other factors determining whether or not you get codes. Some people I talked to said they didn't get codes despite meeting all the announced conditions.09/13/2014 - 9:36am
quiknkoldI got Smash Bros Codes!09/13/2014 - 6:42am
InfophileBasically, anyone who got Platinum level on Club Nintendo last year and has e-mails enabled got four codes yesterday (including me) for early demo downloads. Don't know why Nintendo is doing it this way. Maybe they plan more Club perks like this?09/13/2014 - 4:20am
Matthew Wilson@wym I am just hoping they do not screw up their netcode, but given their history I am not holding my breath.09/13/2014 - 12:05am
Andrew EisenThe Smash 4 demo should be available to all 3DS owners on Sept. 19.09/12/2014 - 8:48pm
WymorenceLucky. I've been drooling at that game hoping they can get it to work for a portable since buying my 3DS09/12/2014 - 8:36pm
MaskedPixelanteMan, the way they animate Mega Man in Smash 4 is so accurate to his sprite it's scary.09/12/2014 - 7:28pm
MaskedPixelante3DS version.09/12/2014 - 3:23pm
Wymorence3DS version or WiiU version?09/12/2014 - 3:22pm
 

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