Video Game Growth To DecreaseBy: Mike Sachoff - January 7, 2008
Video game growth in the U.S. is expected to slow in 2008 according to the Consumer Electronics Association.
Total U.S. industry sales are predicted to rise to $17.9 billion in 2008, an increase of 13 percent from an estimated $15,8 billion in 2007, the CEA said. That compares to a 22 percent increase from 2006 to 2007.
The slower growth is due in part to the fact consumers have gotten over the excitement of new consoles. Hardware sales increased by 50 percent to $6.6 billion in 2007. It has been predicted that sales will shrink to $6.4 billion in 2008.
Software sales are expected to increase significantly. "Software (in 2007 had) phenomenal growth, riding the wave of hugely successful title launches such as (Microsoft’s) Halo 3, (Activision Inc’s) Guitar Hero III and (Electronic Arts Inc’s) Rock Band. In fact, the focus for 2008 will be in the software category, where CEA estimates a 26 percent increase in sales over 2007," said CEA spokeswoman Jennifer Bemisderfer.
Software sales are predicted to increase to $11.5 billion in 2008, up from $9.1 billion in 2007. That was a 7.6 percent increase from 2006, the CEA said.