Console Game Revenue To Hit $66 Billion
The U.S game console market is on track to generate cumulative revenues of $66 billion through 2012 according to a new report from JupiterResearch, "U.S. Console Games Forecast, 2007 to 2012."
JupiterResearch says the competition for console households over the next five years will be fierce and the range in market shares is estimated to be just under 10 percent in 2012 as compared to 33 percent range in market shares in 2005.
"Each platform supplier brings a special set of strengths to the market and to competition in current generation of systems," said Michael Gartenberg, Vice President and Research Director at JupiterResearch.
"On top of that we have seen a dramatic rise in the proportion multiplatform releases from independent publishers over previous generations. This is no longer the winner-takes-all market of the past."
Even with the strong competition between platform suppliers the report says that the market will remain strong. Console market revenue growth will hit a high of $12.8 billion in 2007 and in 2008 U.S. household console penetration will be more than 50 percent.
"Over the last five years the market has steadily added a small number of additional households," said David Schatsky, President of JupiterResearch. "That the industry has continued to sustain growth-despite reaching such high levels-is a testament to the continued innovation by software producers and hardware manufacturers."