US Video Game Industry Revenue Reaches $36 Billion in 2017

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airraidjet

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#1 airraidjet
Member since 2006 • 834 Posts

http://www.theesa.com/article/us-video-game-industry-revenue-reaches-36-billion-2017/

US Video Game Industry Revenue Reaches $36 Billion in 2017

Hardware and software both see significant growth

WASHINGTON – January 18, 2018 – The US video game industry generated a record $36 billion in revenue in 2017, up 18 percent from 2016, according to new data released today by the Entertainment Software Association (ESA) and The NPD Group.

“The spectacular growth of our industry in 2017 proves video game developers, artists, and storytellers are the brightest lights in the US economy, finding more ways to delight the world’s 2.6 billion gamers each year,” said Michael D. Gallagher, president and CEO of ESA, which represents the US video game industry. “Congratulations to our industry’s brilliant creators on delivering another record year of remarkable entertainment that inspired the passion of gamers everywhere.”

The 2017 figure combines hardware revenue, which includes peripherals, and software revenue from physical and digital sales, which includes in-game purchases and subscriptions. Both experienced strong growth that contributed to another impressive year for the video game industry.

US mobile spend data, which includes paid downloads and in-game purchases for mobile and tablet devices through Apple’s App Store and Google Play, was collected from App Annie.

“2017 was a special year for the industry, and for everyone who loves games,” said Mat Piscatella, The NPD Group’s video game industry analyst. “Developers created content that delighted gamers across all gaming platforms. From mobile to PC, and from console to virtual reality, growth was achieved because the passion of gamers was matched only by the talent of game makers.”

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Xabiss

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#2 Xabiss
Member since 2012 • 4749 Posts

Great news for gamers. All of the consoles doing good and PC is doing great. Just a good time to be a gamer.

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Basinboy

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#3 Basinboy
Member since 2003 • 14500 Posts

Blame the lootboxes

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airraidjet

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#4 airraidjet
Member since 2006 • 834 Posts

@Xabiss said:

Great news for gamers. All of the consoles doing good and PC is doing great. Just a good time to be a gamer.

Indeed.

2018 should be even better.

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ellos

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#5  Edited By ellos
Member since 2015 • 2532 Posts

Wooh Nintendo is monster look at that pokemon sweep on 3ds. Pokemon has got to come to switch this year.

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airraidjet

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#6  Edited By airraidjet
Member since 2006 • 834 Posts

The 3DS was released back in early 2011 wasn't it? Still selling great so I don't see support ending for it until 2019, at the earliest.

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deactivated-60113e7859d7d

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#7 deactivated-60113e7859d7d
Member since 2017 • 3808 Posts

Rather see it crash and burn, to be honest.

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Archangel3371

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#8 Archangel3371
Member since 2004 • 44360 Posts

Always great to see the gaming industry doing so well. Really looking forward to a lot of excellent games in 2018.

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airraidjet

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#9  Edited By airraidjet
Member since 2006 • 834 Posts

@ezekiel43 said:

Rather see it crash and burn, to be honest.

Why on earth would you want that?

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Valgaav_219

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#10 Valgaav_219
Member since 2017 • 3130 Posts

@Archangel3371 said:

Always great to see the gaming industry doing so well. Really looking forward to a lot of excellent games in 2018.

Agreed. This should be a pretty big year!

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airraidjet

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#11  Edited By airraidjet
Member since 2006 • 834 Posts

Ars Technica:

Years after predicted “death,” game consoles are doing better than ever

It's hard to remember now, but we're only four or five years out from widespread and confident predictions that the game console market was effectively dead or dying. In 2012, Wired cited mobile disruption and "the whole box-model mentality" in declaring the death of the console. Around the same time, CNN cited a "four-year tailspin" in sales for dedicated consoles (which, coincidentally, started right around the same time as the global financial crisis) to explain "why console gaming is dying."

And IGN, in its own 2012 look at the fate of the console market, offered a bold prediction for the fate of the PS4 months before it was even officially announced: "A better-graphics box at $400? Not going to work."

Today, those and manyother relatively recent predictions of doom for the console market look downright silly. The industry analysts at NPD announced last night that the US video game market grew 11 percent in 2017 to $3.3 billion. The reason? "Video game hardware [meaning consoles] was the primary driver of overall growth," as hardware was up 27 percent for the year, to $1.27 billion.

The launch of the Nintendo Switch was a huge part of this increase, of course. We already knew that the system has been selling at a rapid clip that reportedly outpaced even Nintendo's expectationsworldwide. In the US, though, "on a time-aligned basis through the first ten months on the market, Nintendo Switch has sold more consoles than any other platform in history," NPD says.

But the Switch isn't the only console success story these days. As NPD notes, "combined sales of PlayStation 4 and Xbox One continue on a record-setting pace" in the US. Together, those "high-end" consoles are selling 18 percent better than the PS3 and Xbox 360 did at the same point in their lifecycles and four percent better than the PS2/Xbox generation.

That announcement puts a point on Sony's own strong announcements of PS4 sales, which reached 73.6 million worldwide by the end of 2017 (including 5.9 million over the recent holiday season). But it's not just Sony carrying that segment of the market; Microsoft's Aaron Greenberg pointed out last week that the Xbox One outsold the PS4 in the US in December, proving it at least has some market power on this side of the Atlantic.

Even Nintendo's neglected 3DS family, which looked like it was cratering as recently as 2016 is doing well in this new supercharged console market. December was the 3DS platform's best month for hardware sales since December 2014, NPD said.

Put it all together, and it's hard to believe that the collective wisdom just a few years ago expected consoles to slowly wither away in light of competition from casual mobile games and commoditized PC hardware. Now, it seems clear the concept of a dedicated gaming machine that hooks up to the living room TV is alive and well, thanks to a wide selection of strong hardware that players want to buy.

https://arstechnica.com/gaming/2018/01/years-after-predicted-death-game-consoles-are-doing-better-than-ever/

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deactivated-60113e7859d7d

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#12 deactivated-60113e7859d7d
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@airraidjet said:
@ezekiel43 said:

Rather see it crash and burn, to be honest.

Why on earth would you want that?

Because these AAA devs aren't making games I want to play. Gaming got too big for its own good. Everything is really safe, derivative and boring now. Better to put this sick dog out of its misery and start clean in a few years, after we've put things in perspective.

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Bikouchu35

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#13 Bikouchu35
Member since 2009 • 8344 Posts

Them DLCs and lootboxes.

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#14 hrt_rulz01
Member since 2006 • 22400 Posts

Industry is healthy... great to see!

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airraidjet

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#15 airraidjet
Member since 2006 • 834 Posts

Yep!

This also ensures a next generation of consoles starting probably in late 2020.

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Tigerbalm

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#16 Tigerbalm
Member since 2017 • 1118 Posts

Thank you Sony, Nintendo, and PC.

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#17 Jag85
Member since 2005 • 19638 Posts

That's larger than China, which is $33 billion. Does this mean the US has overtaken China as the largest game market?

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#18 LuxuryHeart
Member since 2017 • 1904 Posts

Thank the casual games made!

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mrbojangles25

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#19 mrbojangles25
Member since 2005 • 58424 Posts

The question is: what company do I invest in? 18% growth is pretty nice.

I'm already kicking myself for not buying some EA stock; it was 99 in December and it is back to 120 or so right now. I was thinking of doing it but I thought there'd be more fallout from their bullshit.

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KungfuKitten

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#20 KungfuKitten
Member since 2006 • 27389 Posts

Is this due to the anti-consumer practices? If so, that's a bubble that could burst.

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#21 APiranhaAteMyVa
Member since 2011 • 4160 Posts

PS4 genre defining AAA exclusives, have put the industry in a very healthy position.

Thank you Sony