Supplemental
Investment information for the Galloping Ghost Productions
games
Dark Presence and Conquering Light
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Galloping Ghost Productions
Supplemental Data Packet
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Taken from
BUSINESS WEEK
The Video Game Industry
Outlook: $31.6 Billion and Growing
The global market will grow at an annual
rate of 9.1% over the next five years, according to a new report
by PricewaterhouseCoopers
by
Jessie Scanlon
The
Power of Gaming
In June,
PricewaterhouseCoopers
released the report Global Entertainment and Media Outlook:
2007-2011. The comprehensive analysis offers a picture of
the entertainment and media landscape, as well as in-depth
breakdowns of 14 industry segments (filmed entertainment; TV
networks; TV distribution; recorded music; radio/out-of-home
advertising; Internet advertising and access spending; video
games; business information; magazine publishing; newspaper
publishing; book publishing; theme parks and amusement parks;
casino and other regulated gambling; and sports).
The report is good news for companies in
the video game industry, predicting that the global gaming
market —measured by consumer spending on games played on all
platforms, including online and wireless games, but not counting
gaming hardware sales—will expand at a compound annual rate of
9.1% over the next five years.
Stated in hard cold cash, PwC estimates
that the video game market will increase from $31.6 billion in
2006 to $48.9 billion in 2011. This makes video games the
third-fastest-growing segment of the entertainment and media
market after TV distribution (up 9.3% to $250.7 billion in 2011)
and Internet advertising and access spending (up 13.4% to $331.6
billion in 2011).
Watching the Trends
Video game growth will be strongest in the
Asia Pacific region, its largest market, with a 10% annual
growth rate through 2011, but will increase in the Europe/Middle
East/Africa region (10.2%), the U.S. (6.7%), Canada (9.4%), and
Latin America (8.2%) as well.
To give a comprehensive picture, PwC
further breaks down the numbers, giving consumer spending by
region on games played on consoles, handhelds, PCs, and mobile
phones, including online games (streamed or downloaded) and
subscriptions to online services such as
GameTap
and XboxLive (MSFT).
(In the U.S., the figures also include the burgeoning business
of advertising in games.)
Certain trends hold steady across most
regions: For instance, driven by increased penetration of
broadband access, online gaming is surging. In the U.S. and
Europe/Middle East/Africa, online gaming represents the
fastest-growing consumer segment (19.3% and 24.6%,
respectively); in Asia Pacific and Canada, online growth came in
second only to wireless (at 16.1% and 13.9%, respectively).
Tremendous Potential
Other trends are more regional. The
in-game advertising market is expected to increase 64% in the
U.S., for instance, while PwC does not even track it in other
regions. And in China, which PwC expects will show the largest
growth rate of any country in the region, rising at a compound
annual rate of 14.3% to $2 billion in 2011, most all of that
growth will come in online games—due to rampant piracy, retail
packaged games are almost nonexistent in the People's Republic.
The takeaway is clear: Spurred by the new
generation of consoles and handhelds, and by increased
penetration of broadband and wireless technologies, the video
game industry is ripe with opportunity. "Growth in platforms
allows you to hit new demographics," says Stefanie Kane, a
partner with PwC's entertainment and media practice, noting that
handheld game devices have brought more women into the market,
and that the entrance of cable and on-demand TV channels will
further widen the base. "There is a lot of unlocked potential."
Jessie Scanlon
is the senior writer for Innovation & Design on BusinessWeek.com.
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