US game sales will fall to $21.6 billion in 2011 - Study

US game sales have been on a slow annual decline since peaking in 2008, and a new research study from Newzoo indicates that trend will continue in 2011. Today, the Amsterdam-based games market research firm said that it estimates US industry sales to total $21.6 billion 2011. Newzoo's sales estimate for this year comes in well below its final tally for US industry sales in 2010, which stood at $24.7 billion.

Newzoo's report indicates that the largest area of growth in 2011 will be social and mobile gaming, which are expected to each turn in revenues that are up 37 percent from 2010. Digital distribution is expected to grow 11 percent, while massively multiplayer online gaming sales and casual game portals are forecast to see revenue increases of 3 percent and 4 percent, respectively.

However, those gains will be offset by a sizable dip in the console and desktop gaming markets. Newzoo's study indicates console game revenue will fall 20 percent in 2011, while PC/Mac sales will slip 7 percent.

On the bright side, Newzoo believes that the industry is in for a turnaround in 2012. According to its research, US sales will climb 3 percent to $22.25 billion next year, led primarily by continued gains in the online and mobile sectors. Newzoo expects console and desktop sales declines to stabilize next year.

Newzoo's full report will be available through its website on July 5 for $950.