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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E. Zachary KnightAh. Didn't realize Captain Falcon was from F-Zero. Perhaps they didn't want too much SSB cross over characters.08/27/2014 - 10:30am
ZenEZK they could easily just put Captain Falcon in (they are using his car anyways) and he would be the most recognizable character from the series for the anime, games, and Smash Bros.08/27/2014 - 9:42am
ZenMasked there are also the two from Animal Crossing that are going to be in it. I am wondering what they will do for the Excitebike level they gave a peek at.08/27/2014 - 9:41am
E. Zachary KnightDoes F-Zero really have a character that is recognizable that could be used? I would think the cars and tracks would be more recognizable.08/27/2014 - 8:55am
MaskedPixelantehttp://www.joystiq.com/2014/08/27/rockstar-lohans-gta-5-lawsuit-just-jonas-ing-for-publicity/ Rockstar releases the biggest "no duh" statement in the universe.08/27/2014 - 8:07am
MaskedPixelanteI'm just saying, they're giving us an F-Zero kart and an F-Zero track, but their crossover representative is Link?08/27/2014 - 8:00am
ZenMasked, not really sure what your are talking about lol. They will be giving a total of 6 characters, 8 vehicles, and 16 tracks...plus the Yoshi and Shy Guy sets if you get both packs. Not bad for about the price of a single CoD map pack lol.08/27/2014 - 7:02am
MaskedPixelanteSee the flaw here. Blue Falcon car, F-Zero themed track, and Link as a playable character.08/27/2014 - 6:46am
IanCNext Level Games would like to say hi.08/27/2014 - 6:32am
Uncharted NEShttp://kotaku.com/zelda-f-zero-coming-to-mario-kart-8-162715073008/26/2014 - 11:17pm
Uncharted NESAlso $8 for each or $12 for both.08/26/2014 - 11:16pm
Uncharted NESZelda, Animal Crossing Coming To Mario Kart 8.08/26/2014 - 11:15pm
Andrew EisenNintendo has worked with plenty of western or non-Japan devs. It partners more often with devs in its own country but I wouldn't say it doesn't like western devs.08/26/2014 - 7:36pm
Matthew WilsonOr... give it to the studio that just formed from the old Darksiders guys. yeah I know outside of Retro they do not like working with western devs.08/26/2014 - 6:46pm
MechaTama31They should have just handed the Zelda reins to the team responsible for Okami, because they out-Zelda-ed Zelda.08/26/2014 - 6:08pm
Uncharted NESI miss Nintendo-Capcom Zelda games. ALTTP on the GBA was my first real time really playing through that game. And you know what, it was fun. :P08/26/2014 - 5:42pm
IanC3 and a half amazing games, since Capcom did the A Link to the Past port, and the Four Swords game that was on the cart. So thats 4 games then, id guess.08/26/2014 - 5:03pm
MaskedPixelanteDepends on who's teaming up with what. Zelda plus Capcom gave us three amazing games. Zelda plus Phillips gave us Youtube Poop.08/26/2014 - 3:25pm
E. Zachary KnightNintendo has had a fairly decent track record with teaming up with external development houses to make games based on their IP, at least recently. I hope they keep it up.08/26/2014 - 3:14pm
IanCThe idea of the Tekken team making a Pokémon fighting game is A: funny and B: clever.08/26/2014 - 2:39pm
 

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