Analyst: Industry to hit $44 billion by 2011

DFC Intelligence predicts gaming biz will increase $15 billion from $29 billion in 2005 over the next half-decade.

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Last year, analysts firm DFC Intelligence predicted that sales from software would hit $26 billion by 2008. Today, the firm is throwing all things gaming--software, hardware, online revenue--into its latest forecast that looks at the business even further down the line. DFC prognosticates that the gaming industry will be worth $44 billion by 2011, up from an estimated $29 million last year.

The majority of the dough is obviously set to come from Sony's PlayStation 3, Microsoft's Xbox 360, and Nintendo's Wii, but DFC analyst David Cole still thinks the next-gen crown is up for grabs.

"Uncertainty is truly the keyword going forward," said Cole. "Three solid video game systems are competing for market share and it will probably be two to three years before a true leader is determined."

Cole believes that software sales from the three platforms will account for about a third of worldwide sales in the industry, with no platform singled out as a clear leader like the PlayStation 2 was in the current-gen war. He also believes that the competition between the three competing consoles, a burgeoning portable sector, and the rising popularity of online games "is the key to success" for the industry.

Discussion

49 comments
Ravenlore_basic
Ravenlore_basic

HMM well, if prices keep going up then I can see it maing that much money but as of now with games all the same as last gen I think more people will move on to other entertainment. I do not see a great race between the three!! Xbox 360 is not selling as well as Xbox did. BUT I am sure by June it will be more clear as Xbox 360 sales continue to struggle while PS3 continues to sell out and Wii gets a lot casual players and non gamers into the game.

toadblat
toadblat

my game mecheen will suf teh net and wlak teh dog for me, LOL

StupidFox
StupidFox

Very nice. I just hope the boom isn't because prices are going up.

_Sam_
_Sam_

Wow, that's ton

sinceps1
sinceps1

I half agree about online games being key..... I guess I just wish there was an option for maybe a 10 dollar cheaper onine distributed game set up.... That should not mean they ELIMINATE being able to buy phsical software but it would be nice to have options....

bminns
bminns

im going to go with my analyst with this one.... analyst (me): WHO FREAKING CARES

h4xx0rz
h4xx0rz

I'm glad my Economics teacher accepts these articles as good "current events". I don't even need to look at a real news site anymore for them. However, relating to the topic, this analysis is highly likely. Anybody can tell that the gaming profits are going through the roof...

boocreepyfootdr
boocreepyfootdr

Thats a lot of money. One step closer to the movie biz, at least financially.

HXCDEW
HXCDEW

ALL YOUR MONEYS ARE BELONG TO US! :D

Riverwolf007
Riverwolf007

Thats true as long as cookie cutter games and overpriced multi media machines dont crash the entire market like it did 20 years ago. Anyone remember the phillips cdi and the 3do?

willardeugene
willardeugene

The same analysts that in the summer say the industry is dying and then in the fall say they are rolling in cash...

rasds
rasds

That's a lot of money

evilbanshee
evilbanshee

"the consols will suf teh internet fully,download music,video,yahoo,everything a pc does" Riiiight. I bet you think they'll gladly sell you a game system that does all that for only $400 or less. Keep dreaming kid.

monkkito
monkkito

davidboggs2005 Bud is time to start using the brain, what your saying makes no sense. Maybe pc will lose gamers to consoles, but they can disapear. Your the one that needs to stop and think. I guess ur gonna be doing homework on your PS3 right? And about the articlem, i agree that it is imposible to predict who the winner is just yet. its not over until the fat lady sings

davidboggs2005
davidboggs2005

[This message was deleted at the request of a moderator or administrator]

DarkSoldier56
DarkSoldier56

Well no crap it going to be worth $44 billion the damn consoles are so expensive and the games are now $60.....I wouldn't be surprised if we reach $45 billion in 2010.

peligroy2k
peligroy2k

[This message was deleted at the request of a moderator or administrator]

Aim
Aim

i will win the 44 billion

kruegersc4
kruegersc4

Analysts get annoying. I can't believe they do it for a living (if they do...).

gamer_10001
gamer_10001

Good the game industry will then be worth as much as Bill Gates, lol.

oldhott02
oldhott02

what up from 29 million to 44 billion that is quiet an increase i think that is a typo.... i don't know

DanC1989
DanC1989

Only good things for the gaming industry...:P

G-Legend
G-Legend

These forums are filled with lemmings and sheeps just look at todays poll...and all the polls including PS3 and Wii or 360 and PS3

solsub
solsub

What the hell is that supposed to mean, manapsal? Fanboy alert. Anyway yeah, competition is good. This is also a sign that the industry itself is expanding, which is equally as good.

TeraTricker
TeraTricker

Hmm... this is good news... I think? However it only is an analysement... Things can be so different than you may think... So I'm not saying that the Wii will win! (However I do want it to...)

Kreestas
Kreestas

i like firms that analyze.

daqua_99
daqua_99

Competition is good ... but yeh ...

j_vega07
j_vega07

"GMAN32X" is right all competition does is helping us the consumer. thats why the cut prices occure and also the competition on creating new and innovative games.

LexLas
LexLas

It's really incredible to see the numbers. Glad to see the game nation is so big though. Wish I could see the future and know which system will dominate the gamer audience a year to two years from now.

LordAndrew
LordAndrew

PS3 looks like it might be a bigger loser than Xbox 360, godovivel.

jonfigs
jonfigs

um yeah competition is good.

godovivel
godovivel

there is no winner but there is a loser : X360

LoWpS
LoWpS

meh, i hate analysts. Theyre always wrong.

drangel_jam
drangel_jam

4esth, word! Sony will decrease the lower end PS3 price in order to attract Sony fans who would rather limit themselves to a Wii price point +/- $250. MS may denitely make it in Japan, with Lost Odyssey and Blue Dragon looking so cheasy for the Japanese masses (Eternal Sonata deserves hype as well). Nintendo will only have to garantee interesting and different games, games that grab you due to the graphic and gameplay styles, and not the power or HD. I'll be getting the PS3 and the Wii as well, but it is going to take me a while.

SUPRAMAN84
SUPRAMAN84

Yeah I think this is true cause of how expensive the 360 and (especially) PS3 are. Not to mention the expanding online arena and new countries like India(I think the 360 just launched there), China, and possibly Korea(get off your PCs!) joining in the fun. Do I see is happening, yeah.

manapsal
manapsal

if there was no competition, companies would overcharge us horribly on inferior games and consoles...sony "cough cough"

NlightN1
NlightN1

how can the numbers of gamers increase anymore than it already has. do analysts not realise that everything in this world has a limit? the only new gamers that the industry might gain will be solely brought by the nintendo wii. the PS3 will only bring those that are no strangers to gaming. no way do i see a $44 billion (USD) industry. unless they heavily market towards india, china, and other rapidly growing countries.

GMAN32X
GMAN32X

The consumer will always be the winner. Competition benefits us alot more than it does them.

4esth
4esth

In the end, why does it even matter if there is a "winner"? It's not like the other two companies will just quit. That would suck for all of us.