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 Wilson@pm I doubt it. Google seems to be distancing themselves from G+07/25/2014 - 9:31pm
Papa MidnightGoogle+ Integration is coming to Twitch!07/25/2014 - 8:41pm
MaskedPixelanteThis whole Twitch thing just reeks of Google saying "You thought you could get away from us and our policies. That's adorable."07/25/2014 - 2:52pm
Sleaker@james_fudge - hopefully that's the case, but I wont hold my breath for it to happen.07/25/2014 - 1:08pm
SleakerUpdate on crytek situation is a bit ambiguous, but I'm glad they finally said something: http://www.gamesindustry.biz/articles/2014-07-25-crytek-addresses-financial-situation07/25/2014 - 1:07pm
E. Zachary KnightMan Atlas, Why do you not want me to have any money? Why? http://www.atlus.com/tears2/07/25/2014 - 12:06pm
Matthew WilsonI agree with that07/25/2014 - 10:45am
james_fudgeI think Twitch will have more of an impact on how YouTube/Google Plus work than the other way around.07/25/2014 - 10:22am
IanCWelp, twitch is going to suck now. Thanks google.07/25/2014 - 6:30am
Sleaker@MP - Looked up hitbox, thanks.07/24/2014 - 9:40pm
Matthew WilsonI agree, but to me given other known alternatives google seems to the the best option.07/24/2014 - 6:30pm
Andrew EisenTo be clear, I have no problem with Google buying it, I'm just concerned it will make a slew of objectively, quantifiably bad changes to Twitch just as it's done with YouTube over the years.07/24/2014 - 6:28pm
Matthew WilsonI doubt yahoo has the resources to pull it off, and I not just talking about money.07/24/2014 - 6:15pm
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MaskedPixelanteIt's the golden age of Hitbox, I guess.07/24/2014 - 6:08pm
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Andrew Eisen"Google is better than MS or Amazon" Wow. Google, as I mentioned earlier, progressively makes almost everything worse and yet there are still two lesser options. Again, wow!07/24/2014 - 5:43pm
Andrew EisenI don't know. MS, in my experience, is about 50/50 on its products. It's either fine or it's unusable crap. Amazon, well... I've never had a problem buying anything from them but I don't use any of their products or services so I couldn't really say.07/24/2014 - 5:42pm
Matthew WilsonGoogle is better than MS or Amazon.07/24/2014 - 5:33pm
Sleaker@AE - I've never seen youtube as a great portal to interact with people from a comment perspective. like ever. The whole interface doesn't really promote that.07/24/2014 - 5:28pm
 

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