Supplemental
Investment information for the Galloping Ghost Productions
games
Dark Presence and Conquering Light
|
|
Galloping Ghost Productions
Supplemental Data Packet
|
Taken from
MSN MONEY
Video-game
sales overtaking music
It's a tale of dueling trajectories -- global trends will
converge this year, a new study says, and the video-game
industry in the U.S. will surpass the music industry in 2008.
By
Reuters
The video-game sector
will remain one of the above-average growth segments of the
global entertainment industries through 2011, with global games
spending set to exceed music spending this year, according to
consulting firm PricewaterhouseCoopers.
In the United States,
the size of the games market will exceed that of the ailing
music sector next year, PricewaterhouseCoopers projects.
Key growth engines will
include online and wireless games, new-generation consoles and
the burgeoning in-game advertising business.
The predictions are all
part of the eighth annual edition of PwC's "Global Entertainment
and Media Outlook" report, released last week.
By 2011, the worldwide
gaming market will be worth $48.9 billion at a compound annual
growth rate of 9.1% during the five-year period, with gains
slowing every year because of the maturation of the current
generation of consoles, according to the report. The compound
gains handily exceed the 6.4% advance that PwC foresees for the
overall entertainment economy during the period.
Its data include
consumer spending on games, but exclude spending on hardware and
accessories.
"Video gaming is one of
the most exciting stories in terms of pure growth numbers," said
Marcel Fenez, PwC's global managing partner for its
entertainment and media practice.
For the U.S. gaming
business, PwC projects 6.7% compound annual gains for the
five-year period, to $12.5 billion.
Asia-Pacific should
remain the region with the highest overall spending on gaming
during the period and reach $18.8 billion in 2011, PwC
forecasts.
Despite its leading
size, its 10% average annual gains will only be exceeded by the
combined region of Europe, the Middle East and Africa (EMEA),
which is pegged for a 10.2% compound annual gain and is set to
remain at No. 2 in terms of worldwide gaming.
Growth rate slowest in
the U.S.
U.S. gaming sector
growth will trail all other regions during the period, with this
year's 15.5% growth shrinking to 3.3% by 2011, according to PwC.
For 2006, PwC's
preliminary estimates are for the U.S. gaming market to have
expanded 10.6% to $9 billion, and it expects the first-ever jump
beyond the $10 billion mark this year to about $10.4 billion.
Worldwide game spending
jumped 14.3% to $31.6 billion in 2006 and should rise 18.5% to
$37.5 billion this year, according to the preliminary data.
Overall, PwC reduced its
future expectations for the U.S. a bit, while slightly boosting
its global outlook, citing strong growth in Asia Pacific and
EMEA.
In last year's report,
the consultancy predicted lower 2010 figures for those two
regions than this year, while its U.S. estimate for that year
stood at nearly $13 billion, compared with a now-revised $12.1
billion.
"Asia has generally
outperformed," with momentum in the wireless space particularly
surprising many, Fenez said. In turn, a quicker PC games decline
along with a looming maturation in the console space is holding
back the U.S. growth figures a bit, he added.
In-game ads a growth
engine
Overall, PwC's
latest five-year growth forecast for gaming is somewhat below
last year's five-year outlook. For the U.S., projected growth
now stands at 6.7%, compared with last year's 8.9%, EMEA is down
from 13% to 10.2%, Asia moves from 12.3% to 10%, and the world
goes from 11.4% to 9.1%.
In the U.S., online and
wireless games should see the biggest gains through 2011, as PwC
predicts online will expand from an estimated $1.1 billion
market last year to $2.7 billion in 2011, and wireless will
double from $499 million to $1 billion.
Consumer spending
on console and hand-held games will go from $6.5 billion in 2006
to $7.9 billion in 2011, the consultancy estimates. In the U.S.,
such new consoles as
Nintendo's (NTDOY,
news,
msgs)
Wii and
Sony's (SNE,
news,
msgs)
PlayStation 3, will continue to drive the market in 2007 and
2008, but "sales will slow during 2009-11 as these machines
approach maturity," according to the PwC report.
While other platforms
might see more explosive gains, consoles will "remain extremely
important" overall, Fenez said.
However, the U.S. PC
games market will continue its decline, with PwC eyeing a
contraction from an estimated $969 million in 2006 to $840
million in 2011.
In-game advertising will
be a key spark for U.S. gaming revenue, growing from an
estimated $80 million last year to $950 million in 2011,
according to PwC. But Fenez signaled that this estimate could
prove conservative as "advertisers like to reach the younger
males" that many games tend to attract.
He also said that the
overall gaming audience continues to expand and become somewhat
more female and older than in the past thanks to casual games
and the arrival as games as an "important part of culture."
Copyright 2007
Reuters.
MSN MONEY FACTOID
With about half of all
Americans between the ages of 12 and 55 playing video games, the
business opportunities keep expanding.
>> PAGE 6
|