Aussie retail games industry slips 12.8 percent in 2011

New NPD figures reveal that the Australian games industry recorded sales of A$1.5 billion in 2011, a year-on-year drop of 12.8 percent.

The Australian video game industry dropped 12.8 percent in revenue in the past year, recording A$1.5 billion in traditional retail game sales in 2011, compared to A$1.7 billion in 2010.

The Interactive Games and Entertainment Association (iGEA) released the latest data from independent market research group NPD Group Australia today, revealing all revenue generated from console hardware, games software, and gaming peripherals sold through retail in the last year. However, the NPD data excludes sales from online retail, downloadable content, online games subscriptions, in-game microtransactions, and mobile games.

According to iGEA CEO Ron Curry, the growth of the digital sector will impact heavily on the local video-game industry in the future.

"As Australians continue to access video games through a host of different channels, it's becoming more challenging to aggregate sales data through a single source," Curry said. "Whilst the NPD data has revealed a dip in 'traditional retail' sales--which, according to our latest Digital Australia report, still represents the lion's share of the games industry--other research has pointed to the growth in digital downloads, multiplayer online games, in-game purchases, and online subscriptions."

According to the iGEA, and citing technology firm Telsyte, estimates reveal that in 2012, Australians will spend over A$450 million in online gaming subscriptions and in-game purchases, accounting for around 20 percent of overall digital goods and the online subscriptions market.

Last year, a PricewaterhouseCoopers report forecasted that the local games industry will grow at 9.5 percent per year, reaching a revenue of A$2.5 billion by 2015 in both traditional and digital sales.

"Overall, we're seeing a lot of evidence point towards a continuing healthy interactive games industry," Curry said.

According to Anthony Reed, CEO of the Games Development Association of Australia (GDAA), the success of local games developers has been a driving force behind the local games market.

"In 2011, Australian-made games featured highly across multiple digital platforms," Reed said. "For example, Brisbane's Halfbrick Studios recorded over 120 million downloads of Fruit Ninja, and 11 million for the recently released Jetpack Joyride. Melbourne-based IronMonkey Studios won Apple's coveted Game of the Year award with Dead Space."

The NPD data also revealed that the top 20 software sales in 2011 featured shooters, RPGs, rhythm games, and sports games, with the two most popular genres of games sold being shooters and action games (both at 19 percent). The data also showed that 54 percent of games sold in 2011 in Australia were rated either G or PG.

In comparison to the previous year-on-year period, the Australian games industry registered a 16 percent decline in sales from 2009 to 2010.

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Discussion

13 comments
tonyhawksP8
tonyhawksP8

Yeah its pretty good for decent prices although stock can run out fairly quick.

raycey
raycey

ozgameshop.com ftw! Though ausgamez.com is often even cheaper, just doesn't have player points like ozgameshop.

KENNYKENNEDY
KENNYKENNEDY

Even steam is a rip off for new games, they are asking for $100 for mw3, if I wanted it I could get a new copy for 50-60 online.

volume_three
volume_three

[This message was deleted at the request of the original poster]

SUPERSAMMOSSAUC
SUPERSAMMOSSAUC

Its time the goverment start lowering the prices of games in Australia and how is the games industry going to survive if the government dosnt invest in our industry Australia is capable of AAA titles, It seems the the current Labour Government dosn't believe in our Technoligical advancement.

robtion
robtion

Yep I no longer waste money at EB games et al. Ozgameshop is basically 2 games for the price of one.

KuronishiX
KuronishiX

Not surprising, with the really high prices and steam

E-i-N-e
E-i-N-e

There is a reason to a drop in 'Traditional Retail' sales; no one in Australia wants to spend $120 from overpriced companies, i.e. EB Games, Game when you can get the game for $60 on OZGameshop. If EB Games/Game actually brought down their prices so they were fair and or competitive, they might seen an increase in sales.

antoss
antoss

ozgameshop ftw! only downside is waiting the week for ya game to come.But the cheap price counteracts that. I only bought MW3 in shop last year cause i wanted to play it day one.

LCS1981
LCS1981

I've spent just as much if not more money on games over the past few years and got twice as many games for my money using Ozgameshop and Steam. I maybe bought two games locally that were heavily discounted. These days I walk into JB HI-FI, look at the game section, think rip off, then walk out empty handed every time. Falling sales year on year. This trend will continue until local distributors get competitive with the global market.

Wrathesoul
Wrathesoul

Yah down Australian prices are simply greedy 90-120 per game when you can ozgame shop the same game from 40-60 thats over 1/2 off and unedited games who would buy from here with that kinda offer.

selbie
selbie

No online retail? Almost 90% of the games I purchased in 2011 were on Steam or other digital distribution methods. I reckon that figure is inaccurate. Most people are using online services these days so this might be misrepresenting the true market condition.

Arch-Stanton
Arch-Stanton

Anyone with half a brain and Ebay account will buy from online stores at 50-80% saving why wouldn,t you.