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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Andrew EisenI only know of him being annoyed that IGDA mistakenly hosted on its anti-harassment tools page, a blocklist he was on. What else was he critical of?01/31/2015 - 2:19am
Goth_Skunk@WonderKarp: Given Rosario's outspoken criticisms of the conduct of the IGDA, I would not be one bit surprised if he's being strong-armed into silence in closed-door meetings. He's not towing the party line, after all.01/30/2015 - 11:38pm
MechaTama31EZK: Thank you! (And I was able to see that you did it, only because you did it. How appropriate! :)01/30/2015 - 11:37pm
Matthew Wilson@Monte Nintendo is a Japanese company though. consoles are dead in japan. ps sony is a international company, so they do not much care about Japanese sales much.01/30/2015 - 10:11pm
MonteOnly one generation ago nintnedo had the best selling console. They know their games are still popular and can move their hardware. They just need to focus on better gaming hardware and advertising (their youtube policy not helping)01/30/2015 - 9:58pm
MonteI'd expect Nintendo to keep making consoles, much like the gamecube i doubt nintendo will see the Wii U as a sign of the end for consoles. There are multiple reason why the Wii U failed a big one being marketting.01/30/2015 - 9:55pm
Wonderkarpwhen asked on Twitter, the Chairman said He couldnt comment at this time https://twitter.com/siloraptor/status/561284497275367424. still looking for facts01/30/2015 - 9:41pm
Wonderkarphttp://pressfarttocontinue.com/2015/01/30/igda-puerto-rico-closed/ this is what I have so far01/30/2015 - 9:27pm
Wonderkarpso allegedly, IGDA has closed their Puerto Rico branch. This comes after the Chairman of the Puerto Rico branch was blocklisted by Randi Harper. I'm trying to dig up more info on it. all I have is a link with some info, but its not cited.01/30/2015 - 9:27pm
Andrew EisenSo, kinda like the Wii U just with a GamePad that's portable?01/30/2015 - 9:13pm
Matthew Wilson@AE I hope they do a Ipad/iphone thing. make a home console/handheld where games are playable on both. that is what I would want from them.01/30/2015 - 9:00pm
Andrew EisenThat would be a shame but as long as I can play comfortably on my TV I'll probably be fine with whatever the future brings.01/30/2015 - 8:56pm
Matthew Wilson@AE I would get used to it. I do not think nintendo is going to do another home console , but I suspect a hybrid one. 1. they are doing worse than the gamecube. 2. the home console market is dead in japan. even the ps4 isnt selling there.01/30/2015 - 8:54pm
Andrew EisenAside from that (and the aiming isn't too smooth but it's turn based so it's not a big deal (maybe better with Circle Pad Pro or New 3DS?)) my only other quibble is I'd much prefer playing it on a console. But I say that about nearly every handheld game.01/30/2015 - 8:39pm
Andrew EisenFrom what I've seen of Valkyria Chronicles, this is significantly slower. Mechanically, it's fine and plays into the game well. It just takes too long.01/30/2015 - 8:37pm
Matthew Wilsonyup like VC it moves every enemy each turn one by one.01/30/2015 - 8:33pm
Andrew EisenI played most of the Codename Steam demo. Pretty neat so far but the enemy turn (it's turn based) takes way too long.01/30/2015 - 8:31pm
Goth_SkunkJust finished the first episode of Life is Strange. The writing is hit-or-miss, the lip-syncing is awful (but I can't fault an indie dev for that), but the chronokinesis mechanic is dynamite. Love the concept. Can't wait to play more.01/30/2015 - 8:23pm
Andrew EisenNintendo invites disaster!01/30/2015 - 7:34pm
TechnogeekRelevant links: http://www.nj.com/hudson/index.ssf/2015/01/apex_2015_video_gaming_tournament_at_secaucuss_emp.html http://www.ign.com/articles/2015/01/30/apex-2015-smash-bros-tournament-resumes-after-short-delay01/30/2015 - 7:29pm
 

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