Video Games

Video games
378 Summary
382 North America
391 Europe, Middle East, Africa (EMEA)
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406 Asia Pacific
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418 Latin America
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Summary
Video games with compound annual increases of 21.3 percent and 12.3
percent, respectively. Online games will total $30.6 billion
The video game market consists of consumer spending in 2014, and wireless games, $13.1 billion. There is an
on console games (including handheld games), personal emerging video game advertising market that totaled $1.6
computer games, online games, and wireless games as billion in 2009, a figure that will increase to $2.8 billion in
well as video game advertising. The category excludes 2014, growing at a 12.9 percent compound annual rate.
spending on the hardware and accessories used for
playing the games. Retail purchases of games are included
in either the PC or console game categories. The online Principal drivers
games category includes microtransactions, which are
The console game market will continue to be driven over
players’ purchases of accessories and additional game
the next few years by new games being marketed for the
content that enhance the gaming experience. If these
current generation of consoles: the Wii, the Xbox 360, and
games are then played online for a subscription fee, the
PlayStation 3 (PS3). The latest handheld devices—the
subscription fee is counted in the online game category.
Nintendo DS (dual screen), the PlayStation Portable (PSP),
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and the PSP Go—also continue to support the market.
Market size and growth by region The online market continues to expand due to the increase
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in penetration of broadband households combined with
The video game market in North America, EMEA (Europe, the growing digital distribution of content. We expect that
Middle East, Africa), Asia Pacific, and Latin America
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will expand from $52.5 billion in 2009 to $86.8 billion in introduced, which will spur renewed growth in console
2014, growing at a 10.6 percent compound annual rate.
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games. The increasing popularity of massively multiplayer
Asia Pacific, with three of the top four countries in the online games (MMOGs), with their subscription fees and
world, is the largest region, at $19.4 billion in 2009, and
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microtransactions, is also aiding the growth of the market.

is projected to be the fastest-growing region during the Casual games represent a further important component of
next five years, increasing at a 16.3 percent compound
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the online market, helping expand the demographic base

annual rate to $41.3 billion in 2014. Online and wireless and stimulate spending.
games—the fastest-growing end-user components of the
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markets—constitute in Asia Pacific a larger share of total The growth of smartphones with improved graphic
spending than in other regions, and consequently, they capabilities will drive demand for wireless games. At
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have a greater influence on growth. EMEA, the second- the same time, new application stores that make the
largest region in 2009, at $16.8 billion, is projected to grow purchasing of games more user-friendly will increase the
by 6.4 percent compounded annually to $23.0 billion. number of gamers willing to purchase games. The growth
North America is projected to increase from $15.1 billion of third-generation (3G) networks, with their faster speeds,
in 2009 to $20.7 billion in 2014, growing by 6.5 percent on will provide an environment enabling wireless games to
a compound annual basis. Latin America is projected to approach the quality of console games.
grow to $1.8 billion in 2014 from $1.1 billion in 2009, a 9.3 The market for PC games will continue to deteriorate as
percent compound annual gain. consumers turn their attention to newer technologies.
The growth of MMOGs, which usually require the retail
Market size and growth by component purchase of a PC game, will partially offset the continuing
decline of the retail PC game market.
Global console games, the largest category, at $28.2 billion
in 2009, will expand at a 5.5 percent compound annual rate Video game advertising is emerging as an additional
to $36.8 billion in 2014. PC games will continue to decline, revenue stream. The dynamic in-game advertising
falling at a 1.8 percent rate compounded annually to $3.5 segment is increasing in importance and is being fueled
billion from $3.8 billion in 2009. Online games and wireless by the growth of the online game market.
games will be the fastest-growing end-user categories,
378 PricewaterhouseCoopers | Global entertainment and media outlook: 2010–2014

Console/handheld hardware main models: the Arcade, with no hard drive, and the Elite,
with a 120-gigabyte (GB) hard drive.
The current generation of consoles—the Xbox 360 from
Microsoft, the Wii from Nintendo, and the PlayStation 3 In early 2010, Microsoft reduced the price of the Xbox
from Sony—all began to be introduced in 2005, became 360 120-GB hard drive in Europe to $125 from $156 while
available in all regions except Latin America by 2007, and supplies last. A 250-GB version is expected to be released
became available in Latin America in 2009. These new in 2010.
consoles, combined with the popular handheld devices—
the PlayStation Portable (PSP and PSP Go) and the PlayStation 3
Nintendo DS—have been driving the console/handheld The PS3 was launched in November 2006 in the United
game market. States, Japan, Hong Kong, Taiwan, Mexico, and Canada,
and in March 2007 in EMEA, Australia, and Singapore,
Microsoft Xbox 360 with subsequent launches later on, including launches in
Microsoft was the first company to introduce its newest the rest of Latin America in 2009. Global sales totaled 34
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generation console, the Xbox 360, when it was launched million as of the end of 2009. As with the Xbox 360, Sony
prior to the holiday season in 2005 in North America, has introduced a number of different PS3 models since
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Europe, and Japan. its introduction. In September 2009, Sony introduced a
slimmer PS3 with a 120-GB hard drive at a reduced price
A total of 39 million units of the Microsoft Xbox 360 have
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of $299 in the US, £249 ($388) in the UK, €299 ($416)
been sold worldwide as of the end of 2009, around 5 in the rest of Europe, and ¥29,980 ($320) in Japan. The
million more than the PS3. In North America, the Xbox 360
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has a wide lead over the PS3, while in Europe, sales of the with games or other Sony electronics spurred demand
two consoles are very close. By contrast, in Japan, the
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worldwide during the holiday season. The PS3 is being
Xbox 360, which appeals primarily to Western gamers, has marketed as the most advanced home entertainment
not performed well.
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center with a Blu-ray player and digital video recorder

The Xbox 360 has a large selection of games and a capabilities as well as an outstanding gaming console.
sophisticated online environment, enabling gamers The PS3 online environment, which is less structured than
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to download games, movies, and other entertainment that of the Xbox 360, is free to users and allows game
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content as well as play against other gamers around the developers to control their own environments. Additionally,
world. A subscription fee is required to take advantage of other online content such as movies can be downloaded.
the various online capabilities. Sony will also be introducing a Sixaxis motion controller in
Microsoft will be introducing a new motion control system 2010. It will combine with the PlayStation Eye camera to
called Project Natal, which is expected to be available in track a user’s face and body movements. It is similar to the
time for the holidays in 2010. With a specially designed Wii controller in that it is waved and can be used in lieu of
camera, games can detect a player’s motions and a sword, a baseball bat, or many other devices.
replicate them on-screen, thereby eliminating the need for
a controller. The new gaming experience is expected to Nintendo Wii
extend the life of the Xbox 360 by several years. Microsoft The Wii, which was launched in November 2006, is being
will also be introducing its retro-themed Game Room, marketed as a game machine, as opposed to the Sony
which will enable gamers to build a virtual arcade filled and Microsoft machines, which are being promoted as
with classic games. The service will launch initially with 30 media centers for home entertainment. Nintendo has
games and is expected to grow to over 1,000 games in expanded the universe of game players to include younger
three years. children, older adults, and women. The Wii is the top-
To keep demand strong, Microsoft has introduced new selling console worldwide, outselling the Xbox 360 despite
models with expanded capabilities and has lowered coming to market a year later than its competitor. The Wii
prices. High-definition/DVD capabilities are available as has sold 67 million units worldwide.
an optional device. Currently, the Xbox 360 comes in two
Video games | Summary 379

Nintendo introduced its first price reduction on the Wii in in November 2009 and is expected to be introduced in the
September 2009, lowering the price to $199 in the US, €199 US and Europe in the first half of 2010. The various DS
($277) in Continental Europe, £179 ($279) in the UK, and models have sold 125 million units worldwide.
¥20,000 ($214) in Japan. The price reduction enabled the
The other major game in the sophisticated portable
Wii to stay competitive with the least-expensive Xbox 360
market is the Sony PSP (PlayStation Portable), a handheld
and to drive demand during the holiday season in 2009.
game device equipped with a 4.3-inch LCD screen that
In the past, a new generation of consoles was introduced plays music and movies on a proprietary minidisc called
around every five years. It is expected that the current the Universal Media Disc (UMD), which holds 1.8 GB
cycle of consoles will last longer than previous cycles of data. The various PSP models have sold 60 million
because demand remains high and none of the manu- units worldwide.
facturers have even hinted at plans for the next round of
Sony introduced the newest model, the PSP Go, in
consoles. The current games are vastly superior to games
October 2009. The new device has a 3.8-inch screen
produced for the previous generations of consoles and
versus the 4.2-inch screen in the previous model. It is
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would be hard to improve upon. Manufacturers will add
unique in that it does not have a UMD drive with content
enhancements to the current machines—such as the new
available only as a download from PlayStation Network.
motion controllers—to entice gamers for the near future
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The PSP Go launched with 225 games available for
rather than introduce entirely new machines. The next
download. In addition to being more streamlined than
generation is anticipated to start emerging at the end of
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the other PSP models, the PSG Go’s major change is
the forecast period.
that it lacks UMD capabilities. It is thus the first gaming
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Beginning in spring 2010, the Wii will join the Xbox 360 and device that relies entirely on digital content. Games are
the PS3 in enabling its users to get instant access to movies downloaded from the PlayStation Network online store
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and television shows from Netflix. Unlike its competitors, either directly to the PSP or first to the PS3 or PC and then
the Wii cannot display movies in high definition. transferred to the PSP. The Go is being marketed to people
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who do not have a handheld device, as previous owners of

Handheld devices the PSP are less likely to upgrade, because their libraries
of UMD games would not run on the new device.
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Combined with interest in the new generation of consoles,

the market for portable game consoles continues to show Sony introduced a digital reader for all PSP models that
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strength. The Nintendo DS is the leading portable device will enable users to download comics from its digital
on a worldwide basis because of its simplicity, which has comic-book store, which has the newest comics as well
broadened its appeal beyond hard-core gamers. The DS as hundreds of classic comics. The digital reader became
has two screens, providing players with two views of the available in the US, the UK, and Australia in December
action as well as touch-screen and stylus capabilities, 2009 and will be available in the other regions in 2010.
which are innovative features in video games.
In December 2009, Sony launched its PSP digital comic-
The DS has broadened the market, attracting women and book store populated with content from several leading
older players with its Touch Generation brand of games, publishers, including Marvel, Disney, and IDW Publishing.
which includes a number of games in the Pokemon and Comics, which cost $1 to $3, are available at the
Brain Training franchise, both of which are exclusive PlayStation store and can be accessed either (1) directly
to the Nintendo DS. Nintendo introduced an improved on the PSP over Wi-Fi or (2) downloaded to a PC or PS3
version called the DSi in April 2009, with a larger screen, and then transferred to a phone.
built-in cameras, and a Secure Digital slot. The company
Apple is positioning the iPod Touch as a mobile-game
is introducing a new, larger version called the DSi XL,
platform. There are around 20,000 games available
which has two 4.2-inch screens, almost double the size
through app stores, although they’re not as sophisticated
of previous versions. The XL has a better viewing angle,
as handheld games.
making sharing content easier. The XL launched in Japan

Social gaming Cloud computing
Social gaming on sites like Facebook and MySpace is A company called OnLive is developing a gaming-on-
growing exponentially. Social games are free, are widely demand service based on cloud computing. Instead of
available, load in a few seconds, and require only a few a user’s purchasing games online and then downloading
minutes at a time to play. They use a business model them to a computer, the new service maintains the
called freemium, wherein the games are given away processing of the games on its servers and enables
free, with the developers gaining revenues through users to play the games without downloading them.
microtransactions as well as advertising. A game grows In this way, there is a level playing field for all players
virally as users invite all of their contacts to join them in regardless of the computers they are playing on. Games
playing the game. are treated as a service, with the business model being
either a subscription or a rental that targets nontraditional
Zynga, the major game developer on Facebook, is credited
demographics, a growing trend in the market.
with introducing the first social game, Zynga Poker, in
July 2007. Zynga’s FarmVille, which was launched on The service is being supported by major companies like
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Facebook in June 2009, is the fastest-growing game Electronic Arts, THQ, and Ubisoft to reach people who do
of all time, with more than 75 million users. Zynga has not normally buy games. Other advantages of the service
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more than 125 million gamers playing its various games, are that (1) it will cut down on piracy because the games
including Mafia Wars and Cafe World, which garnered 10 are never actually downloaded and (2) developers can
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million players in its first week. In total, there were around update games easily. By contrast, download services
500 million social gamers in 2009. /o like Stream provide digital distribution but require users
to have powerful computers and lots of space to hold
Major game developers are taking interest in social games,
the games as well as the time to download them. Cloud
as evidenced by Electronic Arts’ purchasing Playfish, the
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computing models will contribute to overall growth in
second-leading developer in the market, for $275 million
online games.
in November 2009. Playfish has more than 60 million users
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playing its games, which include Pet Society, Restaurant Valve Corporation pioneered the concept of downloading
City, and Country Store. PC games in 2004 with its online service called Steam,
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which provides games from different publishers. More

recently, other companies such as Direct2Drive and
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Impulse have joined the market. Additionally, many of the

game developers are selling games from their own Web
sites. In late 2009, TransGaming teamed up with Intel to
support GameTree.tv, TransGaming’s on-demand service,
which will launch in 2010.
Data for the global video game market by region and for the global video game market by component can be
found within the Industry Overview on page 47.
Video games | Summary 381

North America
The outlook in brief • Consumer spending on games will expand at a 6.1

percent compound annual rate to $19.2 billion from
• The current generation of devices is driving demand for $14.3 billion in 2009, while advertising will rise from
console and handheld games. $877 million in 2009 to $1.5 billion, an 11.7 percent
• The online game market is being driven by increased increase compounded annually.
digital downloading of content as well as new business • Console/handheld games will continue to dominate
models that encourage microtransactions. the market, increasing at a compound annual rate of
• The market for wireless games is being expanded 6.1 percent to $14.4 billion in 2014 from $10.7 billion
by the growth of more-advanced handsets such as in 2009.
the iPhone. • Online games are expected to increase from $2.1 billion
• The market for PC games will continue to stagnate as in 2009 to $3 billion in 2014, growing by 7.7 percent on
interest shifts to console games. a compound annual basis.
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• Attractive video game demographics, dynamic • Wireless games will increase by 7.1 percent on a
advertising, and video game viewer ratings will compound annual basis from $918 million to $1.3 billion
attract advertising. in 2014.
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• The PC game market will decrease to $514 million
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Overview in 2014 from $601 million in 2009, a 3.1 percent
compound annual decline.
• The overall video game market is projected to grow by
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6.5 percent compounded annually to $20.7 billion in
2014 from $15.1 billion in 2009.
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Video game market by component† (US$ millions)

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North America 2005 2006 2007 2008 2009p 2010 2011 2012 2013 2014
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Console/handheld games 6,400 6,903 9,321 11,820 10,680 11,501 12,019 12,669 13,478 14,387
Online games 1,005 1,363 1,688 1,927 2,066 2,245 2,435 2,622 2,805 2,991
Wireless games 420 559 718 845 918 980 1,061 1,136 1,212 1,294
PC games 1,046 1,064 920 777 601 560 544 533 524 514
Total end-user spending 8,871 9,889 12,647 15,369 14,265 15,286 16,059 16,960 18,019 19,186
Advertising 115 346 580 758 877 1,031 1,172 1,289 1,396 1,524
Total 8,986 10,235 13,227 16,127 15,142 16,317 17,231 18,249 19,415 20,710
†At average 2009 exchange rates.

Sources: PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates

Video game market growth by component (%)
2010–14
North America 2005 2006 2007 2008 2009p 2010 2011 2012 2013 2014 CAGR
Console/handheld games –3.5 7.9 35.0 26.8 –9.6 7.7 4.5 5.4 6.4 6.7 6.1
Online games 43.0 35.6 23.8 14.2 7.2 8.7 8.5 7.7 7.0 6.6 7.7
Wireless games 32.1 33.1 28.4 17.7 8.6 6.8 8.3 7.1 6.7 6.8 7.1
PC games –13.3 1.7 –13.5 –15.5 –22.7 –6.8 –2.9 –2.0 –1.7 –1.9 –3.1
Total end-user spending 0.1 11.5 27.9 21.5 –7.2 7.2 5.1 5.6 6.2 6.5 6.1
Advertising 283.3 200.9 67.6 30.7 15.7 17.6 13.7 10.0 8.3 9.2 11.7
Total 1.0 13.9 29.2 21.9 –6.1 7.8 5.6 5.9 6.4 6.7 6.5
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• The video game market in the United States is • The Canadian video game market will increase by
expected to grow from $13.7 billion in 2009 to $18.8 6.6 percent on a compound annual basis reaching
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billion in 2014, exhibiting a 6.4 percent compound $2 billion in 2014 from $1.4 billion in 2009.
annual growth rate. /o
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Video game market by country† (US$ millions)
2010–14
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United States 8,270 9,342 12,092 14,720 13,725 14,790 15,613 16,521 17,568 18,757 6.4
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Canada 716 893 1,135 1,407 1,417 1,527 1,618 1,728 1,847 1,953 6.6
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Total 8,986 10,235 13,227 16,127 15,142 16,317 17,231 18,249 19,415 20,710 6.5

Console/handheld market • Price reductions for all three of the major consoles in
the latter part of the year led to increased demand for
• After two very strong years in 2007 and 2008, the games, culminating in the best December on record for
console/handheld game market retrenched in 2009, the sale of games.
decreasing by 9.6 percent. The recession reduced
discretionary income that in turn led consumers to cut Hardware platforms
back on discretionary purchases, including console
games. Also, Call of Duty was such a big hit in 2009 Consoles
that developers delayed releasing other games. • In August 2009, Microsoft lowered the price of its Xbox
Consequently, there were fewer blockbuster games 360 120-GB Elite model—reducing the price to $299
in 2009. in the United States—while the Arcade model (without
a hard drive) remained at $199. Sales of the Xbox 360
increased dramatically after the reduction in price.
Video games | North America 383

There was a similar price reduction in Canada, with a • The other major device is the Sony PSP (PlayStation
comparable spike in sales of the Xbox 360. A total of Portable). Sony introduced the PSP Go in 2009 at a
4.8 million units were sold in 2009 in the US, with a price of $249 compared with $169 for the PSP-3000,
lifetime total of 18.6 million sold in the US. which was introduced in 2008 and continues to be sold.
Sales of the PSP continue to trail those of the DS, with
• Microsoft announced a holiday special bundle
North American sales of around 3 million in 2009 and a
exclusively for Canada that included a special Elite
cumulative total of around 18 million since introduction,
model with a 250-GB hard drive, Halo 3, and Halo 3
less than half of that of the DS.
ODST as well as two wireless controllers for C$399
(US$349). The special bundle price was C$100 (US$88)
Console/handheld game market
less than the prices of the individual items. This was
the third time in 2009 that Microsoft targeted Canadian • Activision’s Call of Duty: Modern Warfare 2 was the top-
gamers with exclusive game bundles designed selling game in 2009. Launched in November, the game
specifically for them. sold almost 5 million copies on its first day, generating
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$310 million and making it the biggest launch in
• In August 2009, Sony lowered the price of its 80-GB
entertainment history, surpassing Grand Theft Auto
hard drive model from $399 to $299 and reduced
IV, which sold 3.6 million copies on its first day. Call of
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its 160-GB model from $499 to $399. Both of these
Duty has since crossed the $1-billion mark worldwide
models are being phased out in favor of the new,
and has become the fourth-top-selling game in US
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slimmer PS3, which was introduced in September with
history. The Call of Duty franchise includes three of the
a 120-GB hard drive for $299.
top-selling games of all time in the US.
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• The introduction of the new model reinvigorated the
• The Xbox 360 version of the Call of Duty game was
market for the PS3, which sold 4.3 million units in 2009,
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the top-selling game of the year, with the PS3 version
a 23 percent increase from the prior year. Lifetime sales
ranking eighth. Six of the top-10-selling games in the
of the PS3 in the US totaled 11.1 million units as of the
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US in 2009 were exclusive Wii games, with Wii Sports

end of 2009.
Resort followed by New Super Mario Bros. and Wii Fit.
• North American sales of the Wii were around 10 million Nintendo’s Pokemon Platinum for the DS was the only
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in 2009, bringing its total sales since its introduction nonconsole game to make the list of top 10 games in
to around 29 million. The Wii, which costs C$219 2009.
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(US$192), has sold more than 2 million units in Canada

• We expect sales to rebound in 2010 as a number of
since its debut, making it the fastest console to reach
top-rated games that were originally scheduled to be
that plateau.
released in 2009 were delayed to the beginning of 2010
• The price of the Wii was reduced in the United States so as not to compete against Call of Duty: Modern
in September 2009 from $249 to $199, representing the Warfare 2. Some of those major titles are Bayonetta,
first price reduction for the Wii since its introduction. Tom Clancy’s Splinter Cell: Conviction, and BioShock 2.
Additionally, a number of other highly anticipated titles
Handheld devices
are also scheduled to be introduced this year, including
• The Nintendo DS was introduced in North America Final Fantasy XIII, Mass Effect 2, and God of War III.
in November 2004, and the redesigned DS Lite was Many of these titles are sequels and have built-in fan
introduced in 2006. In April 2009, the DSi, which bases. In addition to the sequels, there are a number
contains larger screens and a built-in camera, was of new games that are expected to sell well, including
launched. The DS Lite and DSi combined for sales of Massive Action Game, Dante’s Inferno, and Heavy Rain.
over 11 million units in the US in 2009, with lifetime
sales of the various DS models totaling around 40 • Some of the new games anticipated to be top sellers for
million in the US, representing 34 percent of all US handheld devices are Dragon Quest IX, the best-selling
households. The newest version, the DSi XL, is handheld game in Japan in 2009, and Pokemon Heart
expected to launch in 2010. Gold/Soul Silver for the DS and Metal Gear Solid: Peace
Walker and Valkyria Chronicles 2 for the PSP.

• Canada is the home of a number of top video game games will be older, which will put downward pressure
developers, including Ubisoft in Montreal, which on pricing. We expect low-single-digit price growth
developed Tom Clancy’s Splinter Cell: Conviction, and during the next five years.
Electronics Arts in Burnaby, British Colombia, which
• We expect the console/handheld game market to
developed FIFA Soccer, one of the most popular games
rebound in 2010, growing 7.7 percent to $11.5 billion,
in the world. Around 20 percent of the top-selling
thanks to the many top-line games that are being
games in North America were developed in Canada.
introduced. Growth will continue at a slightly slower
THQ, Funcom, and Ubisoft are among the game
pace through the remainder of the forecast period. The
developers that announced plans to open new studios
market will be maintained by advances in the console
in Canada in 2010.
technology, thereby inspiring new games that will
• Two factors that are helping make Canada a major take advantage of new capabilities such as the new
game-developing center are (1) the large pool of talent motion controllers.
reflecting many universities with game development
• The console/handheld game market in the United
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departments and (2) government policies that support
States is expected to grow by 6.2 percent at a
the industry through tax credits and incentives.
compound annual rate from $9.9 billion in 2009 to
Provincial governments in Canada are revamping
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$13.3 billion in 2014.
their tax credit systems to attract game developers.
Ubisoft, for example, is making a significant investment • A similar pattern is expected for the Canadian console/
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in Ontario because of a more attractive tax package. handheld game market, with revenues increasing
Such incentives make it cheaper and easier to develop /o 5.7 percent on a compound annual basis from
games in Canada than in the United States and Europe. $799 million in 2009 to $1.1 billion in 2014.
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• New games tend to sell at higher prices than games • Overall spending in North America will increase from
that have been on the market for several years and $10.7 billion in 2009 to $14.4 billion in 2014, a
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that are generally discounted. In the absence of a 6.1 percent compound annual increase.
new generation of consoles entering the market, most
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Console/handheld game market† (US$ millions)

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2010–14
United States 6,017 6,462 8,714 10,997 9,881 10,643 11,122 11,718 12,470 13,332 6.2
Canada 383 441 607 823 799 858 897 951 1,008 1,055 5.7
Total 6,400 6,903 9,321 11,820 10,680 11,501 12,019 12,669 13,478 14,387 6.1

Online games Nintendo Wii Shop—enable gamers to purchase

games and facilitate competition against other players
• The PC platform was traditionally the only means to anywhere via the Internet.
play games online and is still the dominant platform.
Consoles are now becoming important platforms • Digital distribution of content is emerging as an important
because each of the consoles in the current generation segment of the market. The retail market for PC games
of consoles supports online gaming. Their online is being hurt by digital distribution, which is shifting sales
marketplaces—Xbox Live, PlayStation Store, and from the PC category to the online category.

• Many game developers are adding downloadable digital connections. World of Warcraft (WoW), which was
content for their games so as to enhance the gaming launched in November 2004, is by far the most popular
experience and as an additional source of revenues. MMOG, attracting more than 12 million players
The microtransaction is becoming an important source worldwide, who pay up to $15 a month to play. Most
of online revenues. Gamers can buy additional content, MMOGs require the retail purchase of a game and then
such as more songs for Guitar Hero or Rock Band. a monthly subscription to play it online.
Around half of online gamers buy virtual items for
• In late 2009, Sony launched Sodium One, a 3-D MMOG
online games. Microtransactions enable gamers to buy
that can be accessed through PlayStation Home.
items that give them an advantage in the game. Free
A software update expected from Sony in 2010 will
games, such as Battlefield Heroes from Electronic Arts,
enable all PS3 games to be viewed in 3-D. Companies
generate revenues by selling upgraded weapons.
such as NVIDIA are selling 3-D glasses for computer
• Microtransactions are expected to generate more and video game use.
than $1.5 billion in 2010. Social games, which are
• The online game market in North America grew by
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built on social network platforms such as Facebook
7.2 percent in 2009, the first year that it failed to reach
or MySpace, will account for around half of all
double-digit gains. Growth has been driven by an
microtransaction spending. For example, gamers buy
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increase in broadband subscribers and the transition
virtual coins to acquire exotic items on FarmVille, the
to the current generation of consoles. Average monthly
leading Facebook social game.
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spending per user has been declining, a trend we expect
• In 2009, Playdom, one of the leading social game /o will continue. There are more subscription services
developers, along with Zynga and Playfish, issued entering the market as well as more companies providing
prepaid cards to be used for buying virtual goods on digital distribution. Nevertheless, as the economy
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such games as Mobsters 2: Vendetta and Sorority Life. improves, we look for somewhat faster growth during the
The cards can be purchased at retail outlets. next five years. The online game market will grow from
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$2.1 billion in 2009 to $3 billion in 2014, increasing at a

• Casual games—such as puzzles, cards, and arcade
7.7 percent compound annual rate.
games that do not require extended periods of time to
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learn or to play—have attracted a wider demographic • Rising broadband penetration and a 5.5 percent
audience, including women and older adults. In fact, increase in the number of 18- to 34-year-olds—the
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the majority of online gamers in the United States are principal demographic for online games—and an
women. There are a number of online sites such as expanding microtransaction market will fuel online
Yahoo! Games, MSN’s Zone, and Electronic Arts’ game spending in North America during the next five
Pogo.com that provide some free games, with most years. The online game market in the United States
of their revenues coming from advertising. is expected to increase from $1.7 billion in 2009 to
$2.5 billion in 2014, a 7.7 percent compound annual
• Massively multiplayer online games are played
growth rate, while the Canadian online game market
by thousands of people simultaneously around
will increase at a slightly slower, 7.5 percent compound
the world. MMOGs are virtual worlds inhabited by
annual rate to $493 million in 2014 from $344 million
supernatural beings such as aliens or wizards that
in 2009.
continue to evolve. Most MMOGs are played on PCs,
with additional content delivered over broadband

Online game market† (US$ millions)
2010–14
United States 821 1,104 1,399 1,605 1,722 1,879 2,045 2,200 2,347 2,498 7.7
Canada 184 259 289 322 344 366 390 422 458 493 7.5
Total 1,005 1,363 1,688 1,927 2,066 2,245 2,435 2,622 2,805 2,991 7.7

Wireless games social game developer for the iPhone, with such games
as iMafia and iFarm.
• Almost all new wireless phones are now Internet
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enabled, enhancing the potential for the downloading • In January 2010, Apple introduced the iPad, a new
of games. The increasing sophistication of the new tablet computer that runs all of the iPhone applications,
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handsets will make for a more enjoyable gaming including the games. With its enhanced graphic
experience. As individuals upgrade their existing capabilities and its large touch screen, the iPad is
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handsets for newer models, the number of game- expected to become the platform of choice for
capable handsets will increase dramatically. /o many gamers.
• Most mobile games are simple because the graphics • Electronic Arts Mobile, the world’s major mobile game
capabilities of the handsets are limited. As a result, the developer—headquartered in California with a major
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most popular mobile games are single-player board studio in Canada—is best known for turning big-name
titles like Monopoly, Scrabble, and Tetris into mobile
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games, word games, and puzzles. These casual games

help widen the demographics of wireless game players. games. Electronic Arts’ major position resulted from
In fact, more than half of wireless gamers are women its purchase of Jamdat in 2006. Jamdat had been the
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who enjoy playing casual games such as Tetris and largest mobile game developer in the world. The other
Bejeweled, the two most-often-downloaded wireless major wireless game developers are Gameloft and
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games in 2009. Glu Mobile.

• There is a growing segment of the market that is • Augmented reality combines computer-generated
interested in advanced 3-D and multiplayer games. graphics with real video and is a promising wireless
These games will become more prevalent as the game technology. Actual video makes a game more
number of technically advanced handsets proliferates. realistic, while the augmented-reality component
allows virtually any scenario to be played out in a game
• Apple’s introduction of the iPhone and the App Store situation. The technology is available on iPhones,
is expanding the wireless game market. The App Androids, and other smartphones and has the potential
Store, which has more than 20,000 games available for to expand the wireless game market.
download, improves the buying experience dramatically
over the carriers’ decks, with better descriptions as well • Around 5 percent of mobile phone subscribers use
as free trials. their devices to download games. A majority of mobile
phones are capable of downloading video games,
• In late 2009, Apple relaxed some of its restrictions that and almost all new phones can do so. Although the
had previously prohibited microtransactions. Under the number of people playing games on their handsets is
new rules, developers of games can sell virtual goods. increasing, most of them are still playing the free games
That change will allow freemium social games that rely embedded in the phones. The growth of smartphones
on microtransactions for revenues to be distributed on with better graphics capabilities and the improved
iPhones and the iPod Touch. Playmesh is the leading buying environment brought about by the applications

stores will drive the market, and a greater proportion of next five years, the market will expand at a 7.1 percent
consumers are expected to begin paying for games. At compound annual rate from $918 million in 2009 to
the same time, the growth of the 3G networks, which $1.3 billion in 2014.
will enable better quality games to be added to the
• The wireless game market in the United States is
casual games, will also spur the market.
expected to grow by 6.9 percent compounded annually,
• The wireless game market in North America rose by 8.6 reaching $1.2 billion in 2014, up from $833 million in
percent in 2009. As with the online market, declines 2009, while the Canadian market will increase from
in average monthly spending have spurred take-up $85 million in 2009 to $131 million in 2014, a 9.0 percent
rates, a trend we also expect will continue. During the annual growth rate.
Wireless game market† (US$ millions)

2010–14
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United States 382 507 653 767 833 886 958 1,023 1,089 1,163 6.9
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Canada 38 52 65 78 85 94 103 113 123 131 9.0
Total 420 559 718 845 918 980 1,061 1,136 1,212 1,294 7.1
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PC games to play certain game genres such as strategy games

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and MMOGs because a keyboard and mouse provide

• With the exception of 2006, the retail market for PC better means of interacting with the games than a
games has been in decline for a number of years console controller does. PC games also provide
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because the rise of the consoles has shifted the superior graphics. The most-advanced games are often
market away from the PC. It must be noted that this PC based because the open platform facilitates more-
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section deals only with retail sales of PC games and efficient development of games. Though many PC
includes neither digital distribution of PC games, nor games are also ported to consoles, some games, like
subscriptions to online games, nor microtransactions Crysis, are so advanced that they cannot be ported.
that take place in online games. Those revenue streams
are growing in importance and are included in the • Microsoft’s Windows 7, launched in October 2009,
online games category. provides users with an improved gaming experience. It
includes DirectX 11, which has superior graphics that
• Retail sales of PC games have been deteriorating for a provide a more realistic environment. Windows 7 Game
number of reasons: Developers are producing fewer PC Explorer provides descriptions of games and how well
games because of the fear of piracy. Consumers have they will play on an individual computer; and it notifies
been migrating from PC games to those played on the the user when updates are available.
current generation of consoles. Retailers do not make
the same effort to market PC games, often relegating • The growth of MMOGs is aiding the retail PC game
them to the backs of their stores. Last, the move to market, as most MMOGs require a retail purchase
digital distribution of games makes downloading them of the game, after which the gamer pays a monthly
directly to the PC an easier alternative to purchasing subscription fee to play the game online. Despite being
the games at retail. five years old, World of Warcraft continues to be the
most popular MMOG in the world. A new expansion
• Despite recent sales declines, PC games do have pack called Cataclysm is expected to be launched
solid fan bases. PCs give gamers a superior method this year.

• In addition to WoW, the other major franchise that Other new PC games to look forward to in 2010 include
continues to support PC game sales offers the various Napoleon: Total War, BioShock 2, and Crysis 2.
Sims games. Sims 3, launched in June 2009, was
• We expect that the number of games sold will show
the top-selling PC game in North America as well as
modest decreases throughout the forecast period and
worldwide, surpassing Wrath of the Lich King, the most
will not be offset by modest price increases. North
recent WoW expansion pack, which was launched
American spending on PC games will decline from $601
in November 2008. Various Sims and WoW games
million in 2009 to $514 million in 2014, decreasing at a
constituted 6 of the top-10-selling PC games in 2009.
compound annual rate of 3.1 percent.
Call of Duty: Modern Warfare 2 was another top-selling
game, at the fifth spot. • The US PC game market will decline by 3.0 percent
annually from $539 million in 2009 to $464 million in
• Starcraft II: Wings of Liberty, a highly anticipated,
2014, while the Canadian market will decline from
exclusive PC title, which will be released in 2010, is the
$62 million to $50 million, a 4.2 percent compound
first non-WoW game introduced by Blizzard since 2001.
annual rate.
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PC game market† (US$ millions)
2010–14
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United States 950 969 826 701
/o 539 502 488 480 472 464 –3.0
Canada 96 95 94 76 62 58 56 53 52 50 –4.2
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Total 1,046 1,064 920 777 601 560 544 533 524 514 –3.1
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Advertising advergames. Volkswagen showed off its new, 2010 GTI

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vehicle in an iPhone game called Real Racing GTI App,

• As the number of video game players continues to which has gamers racing around a track, with the high
increase, advertisers are turning to games as a means scorer getting a free car.
of reaching specific demographic groups that are
becoming more elusive. The prime target consists of • With the advent of online gaming, a more advanced
males 18 to 34 years old who are spending less time type of advertising became possible. Advertisers
watching television and more time playing games. can now place ads that can be changed dynamically
through the Internet. For example, a billboard
• The initial ads were static ads such as billboards promoting a movie can be updated as new films are
that appeared in the backgrounds of sporting events being released. In this way, the advertising will always
or were product placements where a character is be fresh. Additionally, advertising can be geographically
shown with a branded product and placed when targeted, with specific messages hitting different areas.
games were developed. Sports games and games Messages can also be programmed for delivery at
set in contemporary times benefit from ads, as they specific times of day. Since online games are attached
give them a more realistic feeling. For games that are to the Internet, it’s also possible to track the number of
not appropriate for in-game advertising, players are times a gamer is exposed to the ads and the amount of
rewarded with extra levels and after-market add-ons for time that the ads appear on the screen.
watching ads before the games begin.
• Massive Inc., owned by Microsoft, has deals with
• Advergaming is the practice of using a video game to Electronic Arts, THQ, and Activision to insert ads in a
promote a product. Such games are often played for number of its games. Any advertiser that wants to place
free on corporate Web sites. Many broadcast and cable ads in Xbox 360 games must work through Massive Inc.
networks promote their programs through the use of

• Microsoft has been placing ads in its Xbox 360 games • Game publishers are actively pursuing advertising
for several years, while Sony began permitting in-game as an additional stream of revenues. Dynamic in-
advertising in the middle of 2008. Nintendo still does game advertising also provides a continuing source
not permit in-game advertising in any of its games. of revenue compared with the onetime purchase of a
game. Advertisers are seeking advertising opportunities
• Sony is taking a different approach to its in-game
to reach specific demographics that are immersed in
advertising by opening up its platform to allow
their game play. As long as the ads do not interfere with
independent ad companies to broker deals with
their play, gamers react favorably to the ads because
third-party game publishers. IGA Worldwide and
the ads add realism to the games.
Double Fusion, two companies that also developed
the technology to insert dynamic ads in games, have • Display ads, advergames, and advertising on Web-
partnered with Sony to place dynamic ads in PS3 based game portals are the major advertising
games. IGA signed exclusive deals with Activision and segments. Dynamic in-game advertising, currently
Electronic Arts to deliver in-game ads for the PS3. a small part of the advertising mix, will eventually
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overtake static ads.
• An important factor in the growth of game advertising
involves showing how often people see the ads and • Video game advertising is still only a small segment of
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how effective the ads are. Nielsen Media Research the video game market, with North American revenues
established its GamePlay Metrics system—similar to estimated at around $877 million in 2009. We expect
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its television ratings service—to measure what share this market to expand, fueled by growth in dynamic
of the audience plays each game. The game industry /o advertising as online gaming expands. By 2014, video
is developing standards in collaboration with the game advertising will total $1.5 billion, growing by
Interactive Advertising Bureau’s Games Committee and 11.7 percent at a compound annual rate.
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has released in-game measurement guidelines. Massive
• The United States is the largest market in the world
Inc. has established a measuring system to determine
for video game advertising, with revenues of $750
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how long people are exposed to ads in online games.

million in 2009 that will grow to $1.3 billion in 2014. The
Massive Inc. has also joined with comScore, Inc., in
Canadian market, being closely associated with that
developing a methodology to determine how exposure
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of the United States, is a relatively strong market for

to ads affects the motivation to view a product’s Web
advertising, with revenues of $127 million in 2009 that
site. The system tracks gamers’ online actions after
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will grow to $224 million in 2014.

gamers are exposed to ads in order to determine
whether they search for more information regarding the
products or whether they go to the product’s site.
Video game advertising market† (US$ millions)

2010–14
United States 100 300 500 650 750 880 1,000 1,100 1,190 1,300 11.6
Canada 15 46 80 108 127 151 172 189 206 224 12.0
Total 115 346 580 758 877 1,031 1,172 1,289 1,396 1,524 11.7


Europe, Middle East, Africa (EMEA)
The outlook in brief Overview

• The market for console/handheld games is being driven • The overall video game market is anticipated to increase
by games that are being developed for the newest from $16.8 billion in 2009 to $23.0 billion in 2014,
game platforms. growing at a compound annual rate of 6.4 percent.
• The increased penetration of broadband households, • Consumer spending on video games will grow by
the expansion of the digital distribution of content, and 6.2 percent on a compound annual basis from
the growth of the current generation of consoles that $16.4 billion in 2009 to $22.2 billion in 2014.
promote the online experience are spurring the growth
• Video game advertising is expected to grow by
of online games.
13.5 percent on a compound annual basis from
• The growth of technologically advanced smartphones $426 million in 2009 to $802 million in 2014.
and their associated application stores is enticing
• Console/handheld games will continue to be the largest
gamers to download more games, thereby increasing
segment of the market, increasing by 5.4 percent
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the wireless game market.
compounded annually from $10 billion in 2009 to
• PC games continue to stagnate because of the $13 billion in 2014.
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increased attention paid to console games.
• Online games—driven by both casual games and
• Dynamic ads in online games will propel video MMOGs—will increase by 11.9 percent compounded
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game advertising. annually to $4.9 billion in 2014 from $2.8 billion in 2009.
/o • Wireless games will increase to $2.3 billion by 2014,
up from $1.5 billion in 2009, a 9.5 percent compound
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annual increase.
• PC game sales will dip from $2.2 billion to $2.0 billion,
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a 2.0 percent compound annual decrease.

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EMEA 2005 2006 2007 2008 2009p 2010 2011 2012 2013 2014
Online games 1,035 1,398 1,839 2,371 2,776 3,163 3,499 3,954 4,440 4,862
Wireless games 597 833 1,051 1,313 1,484 1,654 1,819 1,983 2,166 2,331
PC games 2,345 2,416 2,433 2,311 2,188 2,151 2,112 2,064 2,021 1,982
Advertising 38 195 286 370 426 509 598 679 737 802
Total 10,433 11,696 14,423 17,013 16,827 18,123 19,151 20,327 21,590 22,953

Video games | EMEA 391

2010–14
EMEA 2005 2006 2007 2008 2009p 2010 2011 2012 2013 2014 CAGR
Console/handheld games 1.5 6.8 28.6 20.8 –6.5 7.0 4.5 4.7 5.0 6.1 5.4
Online games 50.2 35.1 31.5 28.9 17.1 13.9 10.6 13.0 12.3 9.5 11.9
Wireless games 73.5 39.5 26.2 24.9 13.0 11.5 10.0 9.0 9.2 7.6 9.5
PC games 4.4 3.0 0.7 –5.0 –5.3 –1.7 –1.8 –2.3 –2.1 –1.9 –2.0
Total end-user spending 8.2 10.6 22.9 17.7 –1.5 7.4 5.3 5.9 6.1 6.2 6.2
Advertising — 413.2 46.7 29.4 15.1 19.5 17.5 13.5 8.5 8.8 13.5
Total 8.6 12.1 23.3 18.0 –1.1 7.7 5.7 6.1 6.2 6.3 6.4
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• At $3.9 billion in 2009, the United Kingdom has the console market because console game spending is
largest video game market in EMEA. The United limited by the relatively low penetration of console
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Kingdom is an important game-developing center, hardware. Germany has strict laws regarding violence
including major games such as Grand Theft Auto IV. /o in video games. In fact, Germany has its own voluntary
The industry is concerned that other countries, espe- industry rating board called the USK, which reviews
cially France and Canada, will lure game developers and rates games, while most of the other European
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away by providing tax incentives and has asked the UK countries follow the Pan European Game Information
government for similar incentives. The UK game market rating system. The German government is discussing
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decreased 7.7 percent in 2009 because of severe a ban on the production and distribution of all violent
economic conditions. The UK is expected to maintain games. The Sims 3, Anno 1404, and a German version
its dominance, growing 6.7 percent on a compound of Call of Duty: Modern Warfare 2 were the leading
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annual basis to $5.3 billion in 2014. sellers in 2009. The US version of Modern Warfare
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2 was banned in Germany. The German market will

• France is the second-largest video game market in
expand to $3.4 billion in 2014, a 4.9 percent compound
EMEA, at $3.3 billion in 2009, and is the home of
annual increase.
Vivendi Universal Games, Ubisoft Entertainment, and
Infogrames Entertainment, three of the top 10 video • Italy also has a significant video game industry, with
game developers in the world. Call of Duty: Modern revenues of $1.4 billion in 2009. Italy has a number of
Warfare 2 was the leading seller in 2009. France and small game developers, many of which are subsidiaries
the United Kingdom together have produced more of larger, foreign companies. The games developed
video games than has the rest of Europe combined. locally are often football (soccer) related. Italian
The French government provides significant tax spending on video games is expected to grow to $1.9
benefits for the development of games. The video game billion in 2014, increasing at a 6.7 percent compound
market in France is expected to grow by 5.4 percent on annual rate.
a compound annual basis to $4.3 billion in 2014.
• Spain has the fifth-largest video game market in
• Germany has the third-largest video game market in EMEA, at $1.4 billion in 2009. By 2014, the Spanish
EMEA, at $2.6 billion in 2009. In contrast with other video game market will total $1.9 billion, a 6.9 percent
countries’ PC game markets, Germany’s PC game compound annual increase.
market is relatively strong compared with the country’s

2010–14
EMEA 2005 2006 2007 2008 2009p 2010 2011 2012 2013 2014 CAGR
Western Europe
Austria 45 56 63 75 77 84 88 94 99 106 6.6
Belgium 55 66 75 92 95 104 111 121 128 135 7.3
Denmark 144 153 173 202 196 210 222 236 251 267 6.4
Finland 106 115 141 159 147 165 175 182 195 208 7.2
France 2,073 2,303 2,799 3,340 3,306 3,478 3,654 3,854 4,071 4,296 5.4
Germany 1,644 1,799 2,216 2,564 2,645 2,821 2,934 3,061 3,187 3,358 4.9
Greece 30 37 45 54 55 62 67 73 77 82 8.3
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Ireland 272 306 387 470 462 504 535 569 609 647 7.0
Italy 942 998 1,196 1,425 1,407 1,516 1,610 1,715 1,821 1,943 6.7
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Netherlands 439 543 671 813 876 949 999 1,065 1,136 1,222 6.9
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Norway 127 130 162 192 170 186 196 209 223 237 6.9
Portugal 28 34 39 49
/o 47 53 60 63 69 73 9.2
Spain 901 1,030 1,303 1,424 1,387 1,493 1,578 1,682 1,800 1,935 6.9
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Sweden 213 239 276 326 299 320 340 362 385 412 6.6
Switzerland 216 250 296 360 388 417 440 470 504 538 6.8
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United Kingdom 2,437 2,721 3,482 4,185 3,863 4,173 4,409 4,695 5,021 5,346 6.7
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Western Europe total 9,672 10,780 13,324 15,730 15,420 16,535 17,418 18,451 19,576 20,805 6.2
Central and Eastern Europe
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Czech Republic 19 23 29 32 33 36 39 42 46 50 8.7

Hungary 15 17 20 22 23 25 26 27 29 31 6.2
Poland 167 194 243 306 319 333 345 356 369 383 3.7
Romania 6 7 11 16 21 22 23 25 24 24 2.7
Russia 430 521 608 669 760 902 1,005 1,107 1,200 1,287 11.1
Turkey 30 38 43 51 51 55 60 66 68 73 7.4
Central and Eastern
Europe total 667 800 954 1,096 1,207 1,373 1,498 1,623 1,736 1,848 8.9
Middle East/Africa
Israel 36 46 54 67 68 73 80 86 93 99 7.8
Saudi Arabia/Pan Arab‡ NA NA NA NA NA NA NA NA NA NA NA
South Africa 58 70 91 120 132 142 155 167 185 201 8.8
Middle East/Africa total 94 116 145 187 200 215 235 253 278 300 8.4
EMEA total 10,433 11,696 14,423 17,013 16,827 18,123 19,151 20,327 21,590 22,953 6.4

‡Comprises Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Syria, and the United Arab Emirates.

Console/handheld hardware market • The other major competitor in the market is Sony’s
PlayStation Portable, which was introduced by Sony in
Console hardware Europe in 2005. The PSP is a game player combined
with a portable music and movie player that uses a
• Microsoft was the first company to introduce the new proprietary optical rewritable Universal Media Disc.
generation of consoles when it entered the European Sony is hoping to broaden the market by attracting an
market with the Xbox 360 in time for the holiday older audience, appealing to those who have not been
season in 2005. Since then, Microsoft has launched game players.
a number of new models and introduced a series of
price reductions. The current model, the 120-GB Elite, • In 2009, Sony introduced the PSP Go, the first device
sells for £199 ($310) in the UK. The Xbox 360 has an that uses digital distribution as the exclusive source for
installed base of over 10 million units in Europe. content. As a result, owners of prior PSP models with
games on UMDs are not able to use them on the new
• Nintendo introduced the Wii about a year later, in device. Retailers have not embraced the new device,
November 2006. Manufacturing delays associated
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and some, such as Nedgame, the largest game retailer
with the Blu-ray high-definition disc player delayed in the Netherlands, refused to carry the device because
the launch of Sony’s PlayStation 3 in EMEA until of its high price of €250 ($348). PSP Go also competes
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March 2007. with wireless devices like the iPhone, although it uses
• In September 2009, Sony introduced its newest model, Wi-Fi rather than a wireless network for connectivity.
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the PS3 Slim. The new model, with a 120-GB drive, is • In November 2009, Sony introduced the Digital Comics
smaller and lighter than previous models. It also has the
/o reader for the PSP, which enables users to download
same price points of the 80-GB model, which is being comics from its Digital Comics store. The service,
discontinued. The PS3 has an installed base of over
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which initially launched in the UK and Ireland, will enter
10 million units in Europe. the rest of Europe in 2010. In December 2009, Sony
co
• The Wii continues to outsell its competitors in both the introduced its PlayStation Network Video Delivery
UK and the rest of Europe. The Wii is the fastest-selling service to the UK, Spain, France, and Germany,
console in European history, surpassing 20 million units allowing PSP owners to purchase or rent movies.
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in the three years since its launch. It has an installed

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base of over 6 million units in the UK and over 4 million

Console/handheld games
in France. In October 2009, Nintendo lowered the price
of the Wii for the first time, although the price in the UK • The console/handheld game market decreased by 6.5
remained the same but it is now being bundled with the percent to $10 billion in 2009 because of the severe
Wii Sports Resort game and the MotionPlus controller. economic situation in much of EMEA.
• Call of Duty: Modern Warfare 2, which was released in
Handheld devices
November 2009 for the Xbox 360, PS3, and PC, was
• Nintendo’s DS was the most popular hardware format the most popular title in the world and also in Europe in
across Europe in 2009. Since its introduction, the DS 2009 followed by Wii Sports Resort, which launched in
has sold more than 40 million units throughout Europe July 2009. The Wii Fit franchise, including the original
and more than 10 million in the UK, making it the best- and the Wii Fit Plus, has sold around 10 million copies
selling game machine of all time. The DS expanded the since its inception, or one for every two Wii owners in
demographics of gamers, as women and older people Europe. The two titles were among the major titles in
who appreciate the diversity of its games and its new Europe in 2009.
game experience have flocked to the device.
• Although not included in our totals, accessories such
• The newest model, the DSi XL, launched in Europe in as guitars for Guitar Hero and drums for Rockband
early 2010. The DSi XL, which is embedded with two generate significant revenue streams.
games, has two screens that are almost twice the size
of those in previous models.

• The UK is the biggest market in the region, with three exclusive Wii titles, rounded out the top five titles
revenues totaling $2.5 billion in 2009. Although game in the UK. Previous versions of Call of Duty and FIFA
revenues decreased 14.9 percent in 2009, 2009 still were also among the top 10 titles. Revenues in the UK
represented the second-best year for game sales in are expected to reach $3.4 billion in 2014, a 5.9 percent
the UK, following record-setting 2008. The UK has compound annual rate of growth from 2009.
the highest penetration of console game players in
• France is the second major market in the region, with
Europe. Additionally, the UK is the home of a number
revenues of $2.2 billion in 2009 that are expected to
of major game developers, including Codemasters;
increase to $2.7 billion in 2014, a 4.6 percent increase
FreeStyleGames, a subsidiary of Activision Blizzard;
compounded annually.
and Blitz Games Studios.
• Germany is the third-largest market, with revenues
• Call of Duty: Modern Warfare 2 was the top-selling
of $1.6 billion. Germany has a strict ratings system
game in the UK by selling 1.2 million units on its first
that limits sales of violent games and holds down the
day in the UK, almost doubling the sales of Grand Theft
console market. The German legislature is discussing
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Auto IV, the previous record holder. FIFA 2010, released
whether to ban the production and distribution of all
in October 2009, was the biggest-selling sports game
violent games. The market is expected to grow to
throughout Europe and the second-best-selling game
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$2.1 billion in 2014, a 5.3 percent compound annual
in the UK. Wii Sports Resort, Wii Fit, and Wii Fit Plus,
increase from 2009.
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2010–14
EMEA 2005 2006 2007 2008 2009p 2010 2011 2012 2013 2014 CAGR
Western Europe
Austria 29 31 35 40 36 39 40 42 43 46 5.0
Belgium 35 38 40 49 46 49 51 54 57 60 5.5
Denmark 98 102 112 133 121 129 136 143 150 160 5.7
Finland 79 81 97 104 90 97 103 108 114 121 6.1
France 1,417 1,470 1,880 2,294 2,190 2,294 2,398 2,503 2,614 2,746 4.6
Germany 802 909 1,257 1,568 1,638 1,780 1,850 1,921 1,999 2,120 5.3
Greece 19 21 22 28 26 28 29 31 33 35 6.1
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Ireland 171 179 227 278 250 272 284 295 310 328 5.6
Italy 567 562 687 856 786 834 873 919 963 1,027 5.5
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Netherlands 178 238 316 409 427 460 477 501 528 573 6.1
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Norway 92 86 106 127 105 114 120 126 133 142 6.2
Portugal 17 18 21 25 22 24 25 26 28 31 7.1
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Spain 621 676 884 937 853 912 954 1,003 1,055 1,130 5.8
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Sweden 144 154 184 214 204 214 224 234 244 259 4.9
Switzerland 125 136 158 193 205 213 222 233 245 262 5.0
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United Kingdom 1,780 1,883 2,455 2,971 2,528 2,729 2,854 2,999 3,174 3,364 5.9
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Western Europe total 6,174 6,584 8,481 10,226 9,527 10,188 10,640 11,138 11,690 12,404 5.4
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Czech Republic 12 13 16 19 17 18 19 20 21 23 6.2

Hungary 9 9 10 12 11 12 13 13 14 15 6.4
Poland 84 93 112 141 155 168 178 188 198 211 6.4
Romania 1 2 4 7 8 8 8 9 9 10 4.6
Russia 52 58 72 90 81 88 93 99 104 112 6.7
Turkey 19 21 24 28 26 28 29 30 31 33 4.9
Central and Eastern
Europe total 177 196 238 297 298 322 340 359 377 404 6.3
Middle East/Africa
Israel 22 24 30 36 33 35 37 39 42 44 5.9
South Africa 45 50 65 89 95 101 106 111 117 124 5.5
EMEA total 6,418 6,854 8,814 10,648 9,953 10,646 11,123 11,647 12,226 12,976 5.4


Online games play traditional disk-based PC games through a
browser without the need to download any files or own
• The PC has been the dominant platform for online the physical media.
games, as it was originally the only means to play
games online. In 2002, Sony and Microsoft introduced • The rapid growth in social gaming is also driving
online capabilities with their consoles. Each of the spending on microtransactions. Many social games
consoles in the current generation of consoles has an are free, but gamers buy virtual goods to give them an
online environment to download content and to enable edge or otherwise improve the gaming experience.
competitive play over the Internet. • The increased penetration of broadband households is a
• Digital distribution of content is emerging as an major driver of online games because the faster speeds
important segment of the market. The retail market make for a more enjoyable experience. The number
for PC games is being hurt by digital distribution, of broadband subscribers in EMEA surpassed the
which is shifting sales from the PC category to the 100-million mark in 2007, grew to more than 150 million
online category. by 2009, and is expected to exceed 250 million by 2014,
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providing a strong impetus for the online market.
• The online game market is composed of several
segments. Massively multiplayer online games are • Online game revenues rose by 17.1 percent in 2009 to
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usually role-playing games that take place in fantasy $2.8 billion. We expect online games during the next
worlds or medieval worlds and can be played over long five years to increase by 11.9 percent compounded
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periods of time. After purchasing copies of the game at annually to $4.9 billion in 2014.
retail stores, players pay monthly fees to participate and
/o • The UK is the leading online game market in the region,
often make additional purchases of online equipment with revenues of $655 million in 2009, which will
and accessories. Microtransactions associated with
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increase by a compound annual rate of 10.4 percent to
MMOGs are major drivers of online gaming revenue $1.1 billion in 2014.
growth. Currently, these games are played primarily on
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PCs. World of Warcraft is the leading MMOG in EMEA. • France is second, with revenues of $462 million, which
will grow by 10.5 percent compounded annually to
• Another segment of the online market consists of the
c.
reach $762 million in 2014.

casual gamers who go to a Web site and play strategy
• The Netherlands has the third-largest online market,
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or puzzle games, often at no charge, with advertising

supplying the requisite revenues. A number of popular owing to its high broadband penetration, with revenues
sites such as Yahoo! Games attract millions of casual of $302 million in 2009, surpassing its larger neighbor
players daily. These online game portals expand the Germany, which had online game revenues of
demographics of gamers. For example, in France $213 million. The Netherlands is expected to maintain
the majority of gamers using online game portals its lead over Germany through the forecast period, with
are women. revenues reaching $459 million in 2014 compared with
$375 million for Germany.
• The PlayStation Network Video Delivery Service
went live in the UK, France, Germany, and Spain • Italy had the fourth-largest online game market, at
in November 2009 and will be introduced in other $282 million in 2009, and is expected to increase to
European countries in 2010. In addition to games, more $449 million in 2014, slightly behind the Netherlands.
than 2,000 film titles are available that can be rented • Russia is expected to show the sharpest increase,
from €1.99 ($2.77) or bought from €7.99 ($11.11) and growing from $245 million in 2009 to $723 million in
downloaded directly to a PS3 or PSP. With progressive 2014, exhibiting a 24.2 percent compound annual
downloading, it is possible to start watching a film growth rate. Russia thus becomes the third-leading
shortly after it begins downloading. online market in EMEA as of 2010.
• Gaikai, a cloud-based gaming service, began testing
in Europe in September 2009. The service lets players

2010–14
EMEA 2005 2006 2007 2008 2009p 2010 2011 2012 2013 2014 CAGR
Western Europe
Austria 4 7 8 11 14 14 15 17 19 21 8.4
Belgium 6 8 11 15 17 19 21 24 26 28 10.5
Denmark 11 15 20 24 28 31 33 37 42 44 9.5
Finland 8 11 15 19 22 25 26 29 33 36 10.4
France 150 217 300 398 462 509 553 620 697 762 10.5
Germany 106 124 160 207 213 232 260 303 341 375 12.0
Greece 3 4 7 8 10 11 11 13 14 15 8.4
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Ireland 29 40 54 71 81 89 97 108 121 129 9.8
Italy 132 177 220 259 282 311 339 373 414 449 9.7
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Netherlands 150 181 217 264 302 331 356 388 427 459 8.7
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Norway 10 13 17 23 26 30 32 36 40 43 10.6
Portugal 3 4 4 7 7 8 10 11 11 11 9.5
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Spain 76 111 146 186 214 235 254 285 320 355 10.7
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Sweden 15 21 27 39 45 48 54 60 66 72 9.9
Switzerland 42 54 71 92 105 119 128 143 161 175 10.8
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United Kingdom 225 317 434 565 655 721 780 873 979 1,073 10.4
c.
Western Europe total 970 1,304 1,711 2,188 2,483 2,733 2,969 3,320 3,711 4,047 10.3
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Czech Republic 2 3 4 4 5 6 7 8 9 10 14.9

Hungary 2 2 3 3 4 5 5 6 7 8 14.9
Poland 4 5 7 9 11 12 13 14 15 16 7.8
Romania NA NA NA NA NA NA NA NA NA NA NA
Russia 49 71 98 145 245 374 467 561 645 723 24.2
Turkey 3 5 6 8 10 11 12 13 15 16 9.9
Central and Eastern
Europe total 60 86 118 169 275 408 504 602 691 773 23.0
Middle East/Africa
Israel 4 6 7 9 11 13 14 17 18 19 11.6
South Africa 1 2 3 5 7 9 12 15 20 23 26.9
EMEA total 1,035 1,398 1,839 2,371 2,776 3,163 3,499 3,954 4,440 4,862 11.9


Wireless games • Augmented reality combines computer-generated
graphics with real video, and is a promising wireless
• EMEA has a large wireless telephone subscriber base, game technology. Actual video makes a game more
and high-speed wireless data technology is also realistic, while the augmented-reality component
advanced in much of the region. Western Europe is allows virtually any scenario to be played out in a game
at the forefront in the deployment of 3G technology, situation. The technology is available on iPhones,
which provides wireless high-speed Internet access Androids, and other smartphones and has the potential
comparable to the high-speed access provided by to expand the wireless game market.
wired digital subscriber lines. Wireless carriers in
a number of countries are upgrading their wireless • Other revenue streams have emerged, including
networks to High-Speed Downlink Packet Access, subscription fees to continue playing games,
which provides substantially faster download speeds microtransactions to enhance the gaming experience,
than conventional 3G networks do. MMOGs are being and advertising-funded games. Games provided for
developed for the wireless market to take advantage of free in return for watching ads have the potential to
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the speed of the advanced wireless networks. expand the market by introducing more people to the
concept of downloading games. Those people could
• Although more-advanced games are being developed then be converted to purchasers of games in the future.
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for wireless, casual games still dominate the market.
Tetris continues to be the most popular game in many • Wireless games in Europe are distributed by such
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of the countries. Games are being developed to take carriers as Orange and Vodafone and by off-deck
advantage of the unique benefits of cell phones, such/o (game lists from multiple developers) third-party
as location awareness and social interaction. stores such as Jamba, Jamster, and Gameloft as well
as the new application stores from major handset
• Initially, the only games that people could play were
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manufacturers like Apple and Research in Motion
those embedded in their phones. More recently, with (BlackBerry).
the introduction of Internet-connected phones, it
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became possible to download additional games for a • The majority of people play the games that are
fee. New platforms such as the iPhone, which allows embedded in phones rather than paying to download
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users to download games from Apple’s App Store, are games. As the percentage of gamers who download
propelling the market. The App Store, which has more games increases, the wireless market will continue to
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than 20,000 games available for download, improves grow. We project wireless game revenues to expand at
the buying experience dramatically over the carriers’ a 9.5 percent compound annual rate to $2.3 billion by
decks, with better descriptions as well as free trials. 2014 from $1.5 billion in 2009.
• In late 2009, Apple relaxed some of its restrictions that • The UK has the highest penetration of mobile game
had previously prohibited microtransactions. Under the players in Europe, with around 20 percent of its wireless
new rules, developers of games can sell virtual goods. subscribers playing games. Additionally, almost half
That change will allow free social games that rely on of the UK’s 8 million mobile gamers paid for games in
microtransactions for revenues to be distributed on 2009. O2 has around 2.4 million mobile game players—
iPhones and the iPod Touch. more than any other operator—and about two-thirds
of them pay for content. The iPhone has the highest
• In January 2010, Apple introduced the iPad, a new percentage of gamers who pay for content, with
tablet computer that runs all of the iPhone applications, 85 percent of its 700,000 gamers paying for content
including the games. With its enhanced graphic in 2009. By contrast, Vodafone, the second-leading
capabilities and its large touch screen, the iPad is operator, with 1.4 million gamers, had only 38 percent
expected to be a popular platform. who paid for content. As in most other countries,

puzzle games, arcade games, and strategy games are • Wireless game revenues in Spain were $221 million
the most popular types of mobile games in the UK. in 2009 and are expected to grow 9.6 percent
Wireless game revenues were $265 million in 2009 and compounded annually to reach $349 million by 2014.
are projected to increase to $416 million in 2014, a 9.4
• France, with two of the top mobile game publishers,
percent compound annual increase.
Gameloft and Zenops, was the fourth-largest market
• Germany has the second-highest penetration of in the region, with revenues totaling $160 million.
mobile game players, with about 13 percent of its Revenues are expected to increase by 9.3 percent
wireless subscribers playing games on their phones; compounded annually to $250 million.
however, only about one-third of those pay for games.
• The major operators for mobile games in Germany are
By contrast, France trails several other European
T-Mobile and Vodafone, with 27 percent of the market,
countries—with less than 10 percent of its wireless
each followed by O2, with 19 percent. Wireless game
subscribers playing games—but about 50 percent of
revenues in Germany were $143 million in 2009 and
those gamers paid for content in 2009.
will grow to $256 million in 2014, increasing at a 12.4
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• Italy has one of the highest numbers of wireless sub- percent compound annual rate.
scribers of any country in Europe. Its wireless game
• In Switzerland, wireless game revenues are expected
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market was $243 million in 2009 and will increase by
to grow substantially due to high penetration of mobile
7.9 percent compounded annually to $356 million
devices; Switzerland has the highest number of iPhones
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in 2014.
per capita.
/o
m
co
c.
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2010–14
EMEA 2005 2006 2007 2008 2009p 2010 2011 2012 2013 2014 CAGR
Western Europe
Austria 4 7 8 11 13 14 14 15 17 18 6.7
Belgium 6 8 11 14 17 18 19 22 24 25 8.0
Denmark 8 11 14 17 18 20 22 24 26 29 10.0
Finland 6 7 10 13 14 15 17 18 19 21 8.4
France 60 125 111 143 160 177 195 213 232 250 9.3
Germany 75 79 100 122 143 165 185 204 229 256 12.4
Greece 3 4 6 7 7 8 10 11 11 11 9.5
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Ireland 29 40 58 74 83 93 103 113 124 135 10.2
Italy 122 150 185 215 243 272 295 317 336 356 7.9
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Netherlands 29 35 44 54 61 67 72 78 83 89 7.8
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Norway 6 9 12 16 18 20 22 24 26 28 9.2
Portugal 3 4 6 7
/o 8 10 11 11 13 13 10.2
Spain 78 114 154 197 221 245 270 293 323 349 9.6
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Sweden 12 17 22 27 32 37 39 44 49 54 11.0
Switzerland 11 14 20 27 29 32 35 37 40 42 7.7
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United Kingdom 95 133 186 237 265 293 321 351 384 416 9.4
c.
Western Europe total 547 757 947 1,181 1,332 1,486 1,630 1,775 1,936 2,092 9.4
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Czech Republic 2 3 4 4 5 6 7 8 9 10 14.9

Hungary 2 2 3 3 3 3 3 3 3 3 0.0
Poland 4 6 8 10 12 13 15 16 18 19 9.6
Romania NA NA NA NA NA NA NA NA NA NA NA
Russia 30 44 61 78 89 99 109 120 130 130 7.9
Turkey 3 5 6 8 8 9 10 11 12 12 8.4
Central and Eastern
Europe total 41 60 82 103 117 130 144 158 172 174 8.3
Middle East/Africa
Israel 4 6 7 11 13 14 17 18 20 21 10.1
South Africa 5 10 15 18 22 24 28 32 38 44 14.9
EMEA total 597 833 1,051 1,313 1,484 1,654 1,819 1,983 2,166 2,331 9.5


PC games than on consoles. Nevertheless, the console market
is expanding in Germany, and the PC market declined
• PC game revenues reflect the retail sales of packaged during the past three years. We expect that trend to
PC games and do not include online distribution of continue and project spending to fall to $485 million
game content or subscription fees to play PC games by 2014, down 3.6 percent compounded annually
online, both of which are covered in online games. from 2009.
• Revenues for PC games declined in 2009 by • France is expected to maintain its position as the
5.3 percent to $2.2 billion, reflecting the migration to second-leading market, with revenues decreasing to
digital distribution. Revenues are expected to continue $388 million in 2014—a modest, 1.2 percent compound
their long-term decline, decreasing to $2.0 billion in decrease on an annual basis.
2014, a 2.0 percent compound annual decrease.
• The UK saw the number of PC games sold decrease
• Partially offsetting the movement to console games is significantly in 2009. The PC game market, which
growth in the popularity of MMOGs, many of which are declined by 5.0 percent in 2009 to $304 million, is
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PC game titles. The most popular PC games in 2009 expected to decline further to $282 million by 2014, a
include World of Warcraft and WoW: Wrath of the Lich 1.5 percent annual decline. Sims 3 was the top-selling
King, the second expansion pack of the original WoW.
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PC game in the UK in 2009, followed by Football
In order to play many of the MMOGs, gamers must Manager 2010 and Football Manager 2009. Unlike the
first buy a retail copy of the game. Additionally, casual
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situation in many of the other countries, WoW was not
players who do not want to spend money to buy a among the top five games in 2009 because MMOGs are
console can still play games on a PC. At the other end
/o not that popular in the UK.
of the spectrum, the PC represents a better platform for
hard-core gamers to play complicated games because • In Italy, the PC game market is relatively small, both
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the mouse and keyboard provide a better interface for because PC penetration in Italy lags behind that in
complex commands than console controllers do. many of the other European countries and because
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PC game piracy is rampant in Italy. PC game revenues

• Germany had the largest PC market in EMEA, at $584 were $74 million and are expected to decrease by
million in 2009. The strength of the German PC game
c.
2.0 percent compounded annually to $67 million, as the

market is attributable to the relative weakness of the increase in PC penetration will partially offset the long-
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console game market. In fact, unlike most of the other term trend of declining PC game sales.
countries, in Germany more people play games on PCs

2010–14
EMEA 2005 2006 2007 2008 2009p 2010 2011 2012 2013 2014 CAGR
Western Europe
Austria 7 7 6 6 6 6 6 6 6 6 0.0
Belgium 7 8 7 7 7 7 7 7 7 7 0.0
Denmark 26 22 22 22 22 22 22 22 22 22 0.0
Finland 13 13 15 17 15 21 21 19 19 19 4.8
France 439 456 452 431 412 406 402 398 393 388 –1.2
Germany 655 658 655 609 584 563 544 523 503 485 –3.6
Greece 4 4 4 4 4 4 4 4 4 4 0.0
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Ireland 42 43 42 40 40 40 40 40 40 40 0.0
Italy 120 99 89 76 74 71 71 70 68 67 –2.0
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Netherlands 81 79 79 67 64 63 61 60 58 57 –2.3
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Norway 18 19 22 20 14 14 13 13 13 12 –3.0
Portugal 4 4 4 4
/o 4 4 4 4 4 4 0.0
Spain 125 125 115 97 92 91 89 88 88 86 –1.3
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Sweden 41 41 35 35 6 6 6 6 6 6 0.0
Switzerland 36 39 37 34 33 33 32 31 30 29 –2.6
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United Kingdom 328 338 335 320 304 301 298 293 289 282 –1.5
c.
Western Europe total 1,946 1,955 1,919 1,789 1,681 1,652 1,620 1,584 1,550 1,514 –2.1
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Czech Republic 3 3 3 3 3 3 3 3 3 3 0.0

Hungary 2 3 2 2 2 2 2 2 2 2 0.0
Poland 74 87 112 141 135 132 130 128 127 125 –1.5
Romania 5 5 7 9 12 13 14 14 13 12 0.0
Russia 298 345 373 351 339 333 327 317 310 310 –1.8
Turkey 4 5 4 4 4 4 4 4 4 4 0.0
Central and Eastern
Europe total 386 448 501 510 495 487 480 468 459 456 –1.6
Middle East/Africa
Israel 6 6 6 6 6 6 6 6 6 6 0.0
South Africa 7 7 7 6 6 6 6 6 6 6 0.0
EMEA total 2,345 2,416 2,433 2,311 2,188 2,151 2,112 2,064 2,021 1,982 –2.0


Advertising a character in a game may drive a certain type of car,
drink a certain brand of soda, or talk on a certain type
• Initially, video game advertising took the form of static of phone.
ads that were hard coded into the games. For example,
an advertiser could insert an ad for its product as a • In-game advertising is appropriate only in sports games
banner in a racetrack to give the game a more realistic or other types of games that are set in the real world; ads
feel. Such ads had a few shortcomings: (1) they had to would not be appropriate in games set in medieval or
be planned well in advance—during the development of fantasy worlds. In those cases, advertisers can reward
the game; (2) once inserted, they could not be changed; players with extra levels of play or with additional content
and (3) the advertiser had no measure of how often the by viewing ads before a game begins.
ads were seen. • In addition to in-game or pregame advertising, marketers
• With the advent of the Internet and online gaming, are developing advergames, or games used to promote
it became possible to insert ads in games and have a specific brand. For example, BMW uses PACE—
them updated dynamically as the situation warrants. Pursuit Across Europe to showcase its line of cars, while
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For example, a billboard advertising a movie could Channel 4 in the UK introduced a program called 1066—
be updated every few weeks when new titles hit the about the Norman Conquest—through the use of a game
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box office. Similarly, different ads can be displayed by the same name.
for different regions such as an English version for • Currently display ads and advergames are the most
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the UK and a French version for France. A number of prevalent. We expect in-game advertising and, more
companies—including Massive, which was acquired /o specifically, dynamic in-game advertising to gain in
by Microsoft; IGA International; and Double Fusion— importance over time as more games are played online.
have all developed the technology to dynamically place
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ads in video games. IGA signed exclusive deals with • Growth in online gaming will expand the potential
Activision and Electronic Arts to deliver in-game ads market for dynamic in-game advertising and will drive
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for the PS3. Double Fusion signed an exclusive deal for overall spending. We project video game advertising
dynamic in-game advertising for Pro Evolution Soccer, revenues to almost double during the next five years to
a major sports game in Europe. The placement of these $802 million in 2014, a 13.5 percent compound annual
c.
ads takes place while the games are developed, but the increase from $426 million in 2009.
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actual ads can be changed via the Internet. • The UK accounts for more than a quarter of the EMEA
• Advertisers that can get their products to be integral market, with revenues of $111 million in 2009, followed
parts of games reap additional benefits. For example, by France with $82 million and Germany with $67 million.

2010–14
EMEA 2005 2006 2007 2008 2009p 2010 2011 2012 2013 2014 CAGR
Western Europe
Austria 1 4 6 7 8 11 13 14 14 15 13.4
Belgium 1 4 6 7 8 11 13 14 14 15 13.4
Denmark 1 3 5 6 7 8 9 10 11 12 11.4
Finland ‡ 3 4 6 6 7 8 8 10 11 12.9
France 7 35 56 74 82 92 106 120 135 150 12.8
Germany 6 29 44 58 67 81 95 110 115 122 12.7
Greece 1 4 6 7 8 11 13 14 15 17 16.3
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Ireland 1 4 6 7 8 10 11 13 14 15 13.4
Italy 1 10 15 19 22 28 32 36 40 44 14.9
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Netherlands 1 10 15 19 22 28 33 38 40 44 14.9
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Norway 1 3 5 6 7 8 9 10 11 12 11.4
Portugal 1 4 4 6
/o 6 7 10 11 13 14 18.5
Spain 1 4 4 7 7 10 11 13 14 15 16.5
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Sweden 1 6 8 11 12 15 17 18 20 21 11.8
Switzerland 2 7 10 14 16 20 23 26 28 30 13.4
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United Kingdom 9 50 72 92 111 129 156 179 195 211 13.7

c.
Western Europe total 35 180 266 346 397 476 559 634 689 748 13.5
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Czech Republic ‡ 1 2 2 3 3 3 3 4 4 5.9

Hungary ‡ 1 2 2 3 3 3 3 3 3 0.0
Poland 1 3 4 5 6 8 9 10 11 12 14.9
Romania NA NA NA NA 1 1 1 2 2 2 14.9
Russia 1 3 4 5 6 8 9 10 11 12 14.9
Turkey 1 2 3 3 3 3 5 8 6 8 21.7
Central and Eastern
Europe total 3 10 15 17 22 26 30 36 37 41 13.3
Middle East/Africa
Israel ‡ 4 4 5 5 5 6 6 7 9 12.5
Saudi Arabia/Pan Arab†† NA NA NA NA NA NA NA NA NA NA NA
South Africa ‡ 1 1 2 2 2 3 3 4 4 14.9
EMEA total 38 195 286 370 426 509 598 679 737 802 13.5

‡Less than US$500,000.
††Comprises Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Syria, and the United Arab Emirates.

Asia Pacific
The outlook in brief • End-user spending on video games will total $40.9
billion in 2014, growing 16.3 percent on a compound
• Falling console prices and new titles will sustain growth annual basis from $19.2 billion in 2009.
in the console/handheld game market.
• Advertising will increase from $227 million in 2009
• Rising broadband penetration will propel online gaming. to $472 million in 2014, growing by 15.8 percent
• High-speed wireless networks and sophisticated compounded annually.
handsets will drive spending on wireless games. • Console/handheld games will grow to $8.5 billion in
• The PC game market will continue to deteriorate due to 2014, increasing by 4.3 percent on a compound annual
competition from the other sectors. basis from $6.9 billion in 2009.
• Dynamic in-game advertising and the expansion • Online games will become the largest category in
of online gaming will propel the video game 2010, reaching $22.6 billion by 2014, a 27.3 percent
advertising market. compound annual increase from $6.8 billion in 2009.
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• Wireless games will surpass console games in 2014
Overview to become the second-largest category. Spending will
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grow at a 14.1 percent compound annual rate to $8.9
• The video game market will expand from $19.4 billion billion in 2014 from $4.6 billion in 2009.
in 2009 to $41.3 billion in 2014, increasing at a 16.3
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percent compound annual rate. • PC games will fall by 1.4 percent compounded annually
to $852 million in 2014 from $912 million in 2009.
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Asia Pacific 2005 2006 2007 2008 2009p 2010 2011 2012 2013 2014
c.
Online games 1,844 2,509 3,720 5,269 6,752 8,638 11,029 14,079 17,874 22,590
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Wireless games 1,448 2,042 2,802 3,745 4,591 5,472 6,359 7,393 8,139 8,875
PC games 980 1,000 981 923 912 900 890 881 862 852
Advertising 18 102 141 188 227 275 331 382 422 472
Total 9,436 11,245 14,332 16,961 19,411 22,474 26,087 30,528 35,452 41,337


2010–14
Asia Pacific 2005 2006 2007 2008 2009p 2010 2011 2012 2013 2014 CAGR
Console/handheld games –5.9 8.7 19.6 2.2 1.4 3.8 4.0 4.2 4.6 4.8 4.3
Online games 55.3 36.1 48.3 41.6 28.1 27.9 27.7 27.7 27.0 26.4 27.3
Wireless games 81.5 41.0 37.2 33.7 22.6 19.2 16.2 16.3 10.1 9.0 14.1
PC games –2.3 2.0 –1.9 –5.9 –1.2 –1.3 –1.1 –1.0 –2.2 –1.2 –1.4
Total end-user spending 11.4 18.3 27.4 18.2 14.4 15.7 16.0 17.0 16.2 16.7 16.3
Advertising — 466.7 38.2 33.3 20.7 21.1 20.4 15.4 10.5 11.8 15.8
Total 11.6 19.2 27.5 18.3 14.4 15.8 16.1 17.0 16.1 16.6 16.3
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• Japan, at $7.4 billion, is the largest video game market compound annual rate to $19.1 billion in 2014. The
in Asia Pacific and the second-largest video game PRC will account for two-thirds of total growth in Asia
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market in the world, after the United States. It is the Pacific during the next five years.
home of two of the three major console manufacturers— /o • South Korea is the third-largest market in Asia Pacific
Sony and Nintendo—making the console/handheld
and the fourth largest in the world, at $4.1 billion in
game segment more important than in other countries
2009. Wireless games represent the dominant category
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in the region. Japan accounted for 38 percent of total
in South Korea, with online games close behind,
video game spending in Asia Pacific in 2009 but 50
reflecting both a high rate of mobile phone Internet
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percent of the console game market. During the past

access and high broadband penetration. Together,
two years, spending on console games declined. We
those two categories account for 57.7 percent of
expect that a strong December and new titles in the
c.
spending in South Korea. As in the PRC, massively

current year will lead to a rebound on console games in
multiplayer online role-playing games (MMORPGs)
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2010. Double-digit growth in wireless and online games

are popular. The government is investing around $275
will contribute to an overall increase of 7.4 percent on a
million during 2009–12 to support the local video game
compound annual basis to $10.5 billion in 2014.
industry and boost video game exports. We expect the
• The People’s Republic of China (PRC) overtook South market to grow to $6.5 billion in 2014, up 9.5 percent
Korea in 2009 to become the second-largest market in compounded annually.
Asia Pacific and the third-largest market in the world,
• Australia, at $1.1 billion, is the only other country in
at $4.5 billion. Spending rose 38 percent in 2009 on
Asia Pacific above $1 billion. Console games represent
the strength of a surging online market. Online games
the dominant category, constituting 60.5 percent of
dominate the PRC market, accounting for 84 percent
spending. Proliferation of consoles is widespread,
of spending. The PRC has by far the largest online
and a majority of those consoles are connected to the
video game market in the world, constituting a third
Internet, which is propelling online games, and, in turn,
of total global spending and 56 percent of the online
video game advertising. The Australian game industry
market in Asia Pacific. The online market is thriving
is expected to increase at an 8.3 percent compound
in large part because it effectively eliminates piracy,
annual rate to $1.6 billion in 2014.
which is a major problem in the PRC. Online games
are not downloaded but are stored on a server. Users • We expect India to be the second-fastest-growing
must pay in advance to access the server in order to country during the next five years, with a projected 27.0
play. Continued broadband growth and growth in the percent compound annual increase. High piracy rates,
number of users will propel the market. The PRC will be estimated at more than $60 million annually, hold down
the fastest-growing country in the region and will pass legitimate spending. Growth will be fueled principally by
Japan in 2012 to become the largest market in Asia wireless games because they do not require expensive
Pacific. Overall spending will increase at a 33.5 percent PCs or consoles and are less subject to piracy.
Video games | Asia Pacific 407

2010–14
Australia 617 667 832 990 1,079 1,179 1,286 1,395 1,499 1,607 8.3
China 752 1,095 1,989 3,269 4,502 6,150 8,298 11,091 14,631 19,065 33.5
Hong Kong 166 193 225 255 279 301 323 347 368 391 7.0
India 30 43 55 82 116 154 202 291 341 384 27.0
Indonesia 166 196 235 276 305 331 359 388 413 439 7.6
Japan 4,825 5,599 6,686 6,918 7,366 7,983 8,617 9,343 9,914 10,540 7.4
Malaysia 100 116 134 153 166 178 190 206 220 234 7.1
New Zealand 74 74 89 103 115 125 136 151 162 176 8.9
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Pakistan 50 61 73 84 92 100 108 115 123 131 7.3
Philippines 80 93 106 125 137 149 162 175 187 200 7.9
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Singapore 110 123 143 165 182 198 214 232 248 264 7.7
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South Korea 1,947 2,388 3,029 3,667 4,106 4,568 5,038 5,538 6,002 6,469 9.5
Taiwan 299 338 412 487 536 583 632 684 729 776 7.7
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Thailand 188 222 277 330 366 403 441 483 519 557 8.8
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Vietnam 32 37 47 57 64 72 81 89 96 104 10.2
Total 9,436 11,245 14,332 16,961 19,411 22,474 26,087 30,528 35,452 41,337 16.3
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Console/handheld market • Among consoles, the Wii had the highest installed
base in Japan in 2009, at 9.5 million, compared with
Consoles/handheld devices 4.4 million for the PS3 and only 1.2 million for the Xbox
360. Among handheld devices, there were 29.2 million
• Price cuts helped sustain console sales in 2009. In Nintendo DS users in Japan in 2009 and 13.4 million
Australia, the price of the Xbox 360 was reduced to PSP users.
A$299 (US$233), and the PlayStation 3 was lowered
to A$499 (US$389). In Japan, a slimmer version of the • In Vietnam, the PS3 was introduced in early 2010—
PS3 was introduced in September 2009 at a reduced much later than in other countries in Asia Pacific.
price of ¥29,980 ($320). Nintendo also cut the price for • In India, a console market is emerging, propelled by
the Wii to ¥20,000 ($214) in Japan. introduction of the Wii, aggressive promotions of the
• In Japan, the DSi XL, a handheld device, was launched Xbox 360, and efforts to reduce taxes and tariffs on
in November 2009 and sold more than 100,000 units in consoles to bring prices down. We expect sales of
just its first two days. The device features a screen that console games to nearly double during the next five
is 93 percent larger than the DS Lite and that allows years, growing at a 12.3 percent compound annual
Internet access and music downloads. rate, by far the fastest increase in Asia Pacific, albeit
from a small base.

• In the Philippines, the Xbox 360, the PS3, and the Wii • We project Japan to rebound in 2010 with a 2.7 percent
have each significantly reduced their introductory prices, increase and to rise to a projected $4.2 billion in 2014, a
which has increased console purchases. The PS3 is still 3.6 percent compound annual advance from $3.5 billion
the most expensive console, at P18,000 ($377), down in 2009.
from P30,000 ($628). The Xbox 360 Arcade costs around
• South Korea is the second-largest console market in
P9,200 ($193), while the Elite is priced at P13,800 ($289).
the region, at $1.7 billion, up 4.5 percent from 2008.
The Wii costs around P12,500 ($262).
Government investment in the industry should help
local development of games, which in turn should lead
to new titles that will stimulate the market. With growth
• The console/handheld market has been sluggish during helped by an improving economy, we expect faster
the past two years, in large part because of declines growth during the next five years, averaging 5.3 percent
in Japan. Japan’s market fell by 7.9 percent in 2008 compounded annually to $2.2 billion in 2014.
and by an additional 1.8 percent in 2009. In 2008,
• In Australia, console growth slowed to 6.0 percent
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Japan’s decline offset double-digit gains in most other
in 2009 from double-digit increases during the two
countries, resulting in a 2.2 percent overall increase.
prior years. Lower console prices and the growing
In 2009, most countries recorded slower growth, and
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appeal of family titles are expanding the user base.
overall spending rose by 1.4 percent.
The Classification Board in 2009 did not award a rating
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• One of the stronger components of the market is to Aliens vs. Predators, effectively banning the title,
exergaming, which comprises video games that are /o because Australia currently does not have an 18+
used for exercise and fitness. Exergames are crucial classification rating for interactive entertainment. As
elements in the success of the Wii because many of the the market evolves to a more mainstream audience,
m
most popular games, such as Wii Fit, are designed for we expect somewhat faster growth during the next
that platform. Exergames also expand the demographic two years. Console spending will rise to an estimated
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profile of video games by appealing to women and girls. $866 million by 2014, a 5.8 percent compound annual
increase from $653 million in 2009.
• There were signs in late 2009 that the Japanese market
c.
is rebounding. Console sales increased in December, • In general, we expect falling console prices to expand
helped by the price cuts. Final Fantasy XIII, a role- the household base, and new titles to reinvigorate the
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playing game on the PS3 platform from Square Enix, market. We expect spending to expand at a 4.3 percent
sold more than 1 million copies on its first day in compound annual rate during the next five years from
December. That title and New Super Mario Bros. from $6.9 billion in 2009 to $8.5 billion in 2014.
Nintendo for the Wii are expected to be big sellers in
2010. Dragon Quest IX from Square Enix was the top
seller in 2009.

2010–14
Australia 399 400 513 616 653 694 737 780 823 866 5.8
China 54 61 76 90 94 97 100 104 108 112 3.6
Hong Kong 89 99 115 129 134 138 141 146 151 156 3.1
India 12 13 13 14 19 21 29 30 32 34 12.3
Indonesia 88 97 116 134 139 143 147 153 159 165 3.5
Japan 3,007 3,271 3,851 3,547 3,484 3,578 3,685 3,813 3,973 4,166 3.6
Malaysia 56 61 69 76 79 82 85 89 93 97 4.2
New Zealand 37 31 36 39 44 45 47 49 52 56 4.9
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Pakistan 29 32 37 42 43 45 46 48 50 52 3.9
Philippines 45 48 55 62 63 65 67 70 73 76 3.8
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Singapore 56 58 66 73 75 77 79 82 85 88 3.2
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South Korea 991 1,120 1,378 1,599 1,671 1,758 1,856 1,954 2,063 2,168 5.3
Taiwan 167 177 215 247 257 265 271 279 288 298 3.0
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Thailand 98 105 125 142 147 152 157 163 170 177 3.8
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Vietnam 18 19 23 26 27 29 31 33 35 37 6.5
Total 5,146 5,592 6,688 6,836 6,929 7,189 7,478 7,793 8,155 8,548 4.3
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Online games • Many game developers are adding downloadable

digital content to their games to enhance the gaming
• The PC platform was traditionally the only means to experience and as an additional source of revenues.
play games online and is still the dominant platform. Microtransactions generally account for a larger share
Each of the consoles in the current generation of of online revenues in Asia Pacific than in other regions.
consoles has features to entice online users, including In fact, microtransactions in some countries constitute
online marketplaces—such as Xbox Live, PlayStation a majority of total spending on online games.
Store, and Nintendo Wii Shop—which enable gamers
to purchase games and which facilitate competition • The PRC was the first country in the world to adopt the
against other players anywhere via the Internet. The microtransaction model when Shanda began offering
games that these sites sell are mostly small games or games that can be played for free online, in large
expansion packs, because a major game could require part because piracy is a major problem. Revenues
up to 50 GB of data to be downloaded. are generated through microtransactions whereby
gamers purchase virtual items such as swords or
• Digital distribution of content is emerging as an important currency to progress with their characters or buy
segment of the market. The retail market for PC games more content such as access to an advanced level.
is being hurt by digital distribution, which is shifting sales Gamers who do not match those purchases are at a
from the PC category to the online category. disadvantage, which induces them to match purchases

and creates opportunities for developers to create games and preapproval of online games. Also in 2009,
more virtual items. Around three-quarters of total the Ministry of Culture banned online games with gangs
online game spending in the PRC is generated through in them, because such games conflict with traditional
microtransactions. War of Legends is one of the newest Chinese culture. Tencent, Shanda, Perfect World,
games based on Chinese myth. Players can buy virtual Giant Interactive, Sohu, NetEase, and The9 are leading
resources to help them become clan leaders. providers. The9 had local rights to World of Warcraft
through June 2009 but lost them to NetEase. The latest
• Microtransactions also dominate the online game
WoW expansion, Wrath of the Lich King, was released
market in South Korea. As in the PRC, microtransactions
in early 2009. MMORPGs constitute more than three-
sidestep high piracy rates because they are associated
quarters of the time spent on online games. We expect
with a gamer’s account. The games themselves are
more than 80 million new broadband households
available for free or for nominal prices. Through prepaid
in the PRC during the next five years, which should
balances, gamers can buy virtual accessories to improve
significantly expand the user base. We project spending
their competitive positions or to gain access to more
to reach $17.7 billion by 2014, a 36 percent compound
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levels of play, virtual weapons, or special avatar features.
annual increase from 2009.
Nexon Corporation was one of the first companies to
develop this business model in South Korea. • More than 90 percent of households in South Korea
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have broadband connections, and online games
• Massively multiplayer online games, played by thousands
are very popular, fueled in part by high rates of
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of people simultaneously around the world, are very
microtransaction purchases. Online games, particularly
popular in Asia Pacific, particularly in the PRC. Unlike
/o real-time-strategy games, are considered on a par with
most video games—which have plots and endings—
professional sports. Games are often televised, and
MMOGs are virtual worlds, inhabited by supernatural
professional real-time-strategy players are celebrities.
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beings such as aliens or wizards that continue to evolve.
Spending rose by 14 percent in 2009, and we project a
Most MMOGs are played on PCs, with additional content
10.7 percent compound annual increase during the next
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delivered over broadband connections.

five years to $1.9 billion in 2014.
• Also popular and growing in importance are casual
• Japan has the second-largest broadband household
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games such as puzzles, cards, and arcade games that

base (behind the PRC) in Asia Pacific, at 31 million in
do not require extended periods of time to learn and
2009, which provides a large base for online games.
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to play. They attract a wider demographic audience,

Microsoft launched the Xbox Live Marketplace in Japan
including women and older adults. Most of the casual
in 2009, which enables users to download to their
games such as puzzles are played for free, with
consoles movies and animated cartoons (anime) with
revenues generated from advertising.
content specially designed for the Japanese market.
• Online games was the fastest-growing component of The PS3 also has an active online community. With
the video game market in 2009, with a 28.1 percent the broadband household base projected to grow by
increase to $6.8 billion—by far the largest in the world 11 million during the next five years, we expect the
and constituting 58 percent of the global online game online market to continue to thrive. Online spending will
market. The PRC is the dominant market, at $3.8 billion increase by 10.8 percent on a compound annual basis
in 2009, followed by South Korea at $1.2 billion and to $1.7 billion in 2014.
Japan at $1 billion. Together, those three countries
• Australia, at $165 million, is the next-largest online
account for 89.1 percent of the market in Asia Pacific.
market in Asia Pacific, and usage is growing. Xbox Live
• Spending in the PRC rose by 41.5 percent in 2009 and users rose by 50 percent in 2009. Of the 650,000-unit
was five times higher in 2009 than in 2006. Growth was Xbox 360 user base in 2009, 60 percent were connected
fueled by rising broadband penetration and a surging to the Internet, while 55 percent of the 580,000-unit PS3
user base estimated at nearly 70 million in 2009. user base were online. A nearly 30 percent increase
The General Administration of Press and Publication in the broadband household base during the next five
banned foreign investment in the online game industry years will further expand the online market. We project
in 2009, with the goals of better control over imported

online spending to rise to $312 million by 2014, a 13.6 • The online market will be driven by further growth in
percent increase compounded annually. the broadband market, which we project will rise by a
cumulative 75 percent during the next five years. We
• MMORPGs are very popular in the Philippines. Gamers
project spending to increase to $22.6 billion by 2014, a
gain access primarily through Internet cafés. Popular
27.3 percent compound annual gain. Online games will
2009 games include Cabal Online, Data, World of
continue to be the fastest-growing category. Its share of
Warcraft, Dragon Age: Online, and Ragnarok.
total end-user spending will increase to 55.2 percent in
2014 from 35.2 percent in 2009.

2010–14
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Australia 80 103 123 146 165 187 214 242 273 312 13.6
China 509 763 1,545 2,687 3,801 5,321 7,338 9,984 13,375 17,658 36.0
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Hong Kong 30 37 44 51 58 65 72 79 86 93 9.9
India 3 4 5 8 21 24 29 33 37 40 13.8
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Indonesia 36 44 52 60 /o 68 76 84 91 99 107 9.5
Japan 442 608 774 918 1,045 1,174 1,302 1,442 1,586 1,745 10.8
Malaysia 20 25 29 34 38 42 45 49 53 57 8.4
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New Zealand 15 19 24 29 32 36 41 46 51 56 11.8
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Pakistan 10 14 17 20 23 25 28 30 33 36 9.4
Philippines 16 21 24 28 32 35 39 43 47 51 9.8
c.
Singapore 24 29 35 41 47 52 57 62 67 72 8.9
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South Korea 538 689 861 1,025 1,169 1,318 1,464 1,628 1,784 1,946 10.7
Taiwan 63 76 91 107 121 135 150 165 180 195 10.0
Thailand 52 69 86 103 118 133 149 166 183 200 11.1
Vietnam 6 8 10 12 14 15 17 19 20 22 9.5
Total 1,844 2,509 3,720 5,269 6,752 8,638 11,029 14,079 17,874 22,590 27.3

Wireless games wireless phones are now Internet enabled, thereby

enhancing the potential for the downloading of games.
• For many years, consumers have played games such The increasing sophistication of the new handsets will
as Tetris and Snake that came embedded in their make for a more enjoyable gaming experience. As
phones. Carriers used the games to differentiate their individuals upgrade their existing handsets for newer
handsets from their competitors’ and to encourage models, the number of game-capable handsets will
purchase of their handsets. The embedded games did increase dramatically.
not provide a revenue stream for the carriers. More
recently, carriers introduced phones that were capable • Most of the mobile games are simple and are similar
of downloading additional games. Almost all new to games developed for consoles 10 to 15 years ago

because the graphics capabilities of the handsets are by the application stores will drive the market, and a
limited. As a result, the most-popular mobile games are greater proportion of consumers are expected to begin
single-player board games, word games, and puzzles. paying for games. At the same time, the growth of the
Additionally, the average amount of time spent playing 3G networks, which will enable better-quality games
is less than 30 minutes, requiring games to be much to be added to the casual games, will also spur
simpler than console games that can take hours to the market.
complete. These casual games also help widen the
• Asia Pacific is even more dominant in the wireless
demographics of wireless game players. In fact, more
game market, which constitutes 63 percent of global
than half of wireless gamers are women who enjoy
spending. Because there are more wireless telephone
playing casual games such as Tetris and Bejeweled, the
subscribers in Asia Pacific than in the rest of the
two most-often-downloaded wireless games in 2009.
world combined, this region has a greater potential for
Tetris is the most popular wireless game in the world,
wireless video games.
having sold more than 100 million copies worldwide.
• Japan at $2 billion and South Korea at $1.2 billion are
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• At the other end of the spectrum is a small but growing
the lead markets, together generating 70 percent of the
segment of the market that is interested in advanced
total wireless game market in Asia Pacific.
3-D and multiplayer games. These games will become
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more prevalent as the number of technically advanced • The dominance of Japan and South Korea in wireless
handsets proliferates. The new handsets have bigger video games mirrors their dominance in all aspects
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screens, faster processors, 3-D graphics, advanced of wireless use. More than 80 percent of wireless
sound capabilities, and more storage for memory- /o subscribers in both countries access the Internet
intensive games. through their wireless devices, and both countries
have large mobile music markets and mobile e-book
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• The original business model entailed downloading
markets. Japan and South Korea also have gaming-
games from carriers’ Web sites either (1) directly to a
centric societies where people play games on their
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phone or (2) to a PC and then transferring the games

phones for extended periods of time.
to a phone. As new platforms with more-user-friendly
interfaces emerge, we would expect more people to • Smartphones and other high-end handsets also will
c.
directly download games. drive the wireless game market because they can
accommodate sophisticated games that incorporate
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• Apple’s introduction of the iPhone has expanded the

3-D graphics and network connectivity for multiplayer
wireless game market. The App Store, which has more
games. In Japan, NTT DoCoMo plans to launch a
than 20,000 games available for download, improves
fourth-generation service in 2010, and smartphones
the buying experience dramatically over the carriers’
were leading handset sellers in both Japan and South
decks, with better descriptions as well as free trials.
Korea in 2009.
Independent developers that used to be locked out
of the carriers’ decks are flocking to the App Store • We expect Japan to increase to $3.7 billion by 2014, a
because of the ease of entry and higher payouts. 13.3 percent compound annual increase, while South
Korea will rise to $2.3 billion, growing at a 13.6 percent
• Other major handset manufacturers, such as Nokia,
compound annual rate.
have also established application stores that sell
games. Favorable response to application stores is • The PRC and India are becoming major wireless game
increasing the percentage of wireless subscribers who markets because of their large wireless subscriber
pay to download games. bases and expanding 3G markets. There were 800
million wireless telephone subscribers in the PRC in
• Although the number of people playing games on their
2009 and 450 million in India. In the PRC, 3G licenses
handsets is increasing, a majority of people are still
were awarded to each of the three state-run carriers in
playing the free games embedded in the phones. The
2009, which will collectively spend $40 billion in 2009–
growth of smartphones with better graphics capabilities
10 on their 3G networks. India is planning to auction 3G
and the improved buying environment brought about
licenses in 2010.

• We project the wireless game market in the PRC to availability of games for the iPhone has contributed
reach $1.2 billion in 2014 from $573 million in 2009, considerably to recent growth. The analog television
a 15.9 percent compound annual increase. India will switch-off will free up more spectrum for mobile
be the fastest-growing country, with a 35.8 percent communications. New spectrum owners will be able to
compound annual increase. In India, wireless phones offer advanced data services that will provide a better
are the dominant game-playing devices because they platform for wireless games. We expect Australia to
are often the only available devices outside of Internet grow at a 13 percent compound annual rate to $343
cafés. We project spending in India to increase from million in 2014.
$61 million in 2009 to $282 million by 2014.
• We expect the wireless video game market to increase
• Australia also has a significant wireless market, at $186 to $8.9 billion in 2014 from $4.6 billion in 2009, a
million in 2009, the fourth largest in Asia Pacific. The 14.1 percent compound annual increase.
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2010–14
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Australia 66 89 119 153 186 222 257 292 320 343 13.0
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China 181 254 347 466 /o573 687 804 936 1,067 1,199 15.9
Hong Kong 26 33 42 53 64 75 86 98 106 115 12.4
India 13 21 30 51 61 92 123 204 246 282 35.8
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Indonesia 29 40 52 67 82 96 111 127 138 149 12.7
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Japan 608 884 1,216 1,629 2,004 2,382 2,763 3,204 3,471 3,738 13.3
Malaysia 16 22 28 36 42 47 54 61 67 73 11.7
c.
New Zealand 12 16 21 27 32 37 42 49 53 57 12.2

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Pakistan 8 11 15 18 22 25 29 32 35 38 11.6
Philippines 13 17 21 29 35 42 49 54 59 64 12.8
Singapore 16 21 29 38 47 56 64 74 82 90 13.9
South Korea 375 525 732 978 1,200 1,422 1,641 1,875 2,071 2,266 13.6
Taiwan 51 66 87 114 138 163 189 218 239 260 13.5
Thailand 28 35 51 69 84 100 116 134 146 158 13.5
Vietnam 6 8 12 17 21 26 31 35 39 43 15.4
Total 1,448 2,042 2,802 3,745 4,591 5,472 6,359 7,393 8,139 8,875 14.1


PC games distribution of PC games will also have a negative effect
on retail sales of PC games. While they have a smaller
• High piracy rates limit the retail PC game market in base, there will continue to be a market for PC games
many countries. India, the PRC, and South Korea have because they are cheaper to produce, resulting in a
virtually no PC markets because of piracy. lower average price compared with console games.
• In other regions, the PC market is sustained by online Additionally, they will be popular with players who buy
games that often require the retail purchase of a PC sophisticated gaming computers that can outperform
version of the game. That driver does not play a role even the newest consoles. Last, they will continue to
in the PRC—the largest online market in the world— be the portals to the world of MMOGs. Some people
because games are downloaded for free, but users must will continue to purchase PC games at retail—rather
pay to access the server in order to play against others. than downloading them—because of their portability,
enabling them to take a game to someone else’s house
• Japan and Australia are the two major PC game to play.
markets in the region because piracy is not as much
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of a problem in those countries. Japan at $704 million • Most of the attention has been devoted to new console
represented 77 percent of the market. When we include titles and the growing online and wireless markets.
Australia at $67 million, the combined share rises to PC game sales have been declining during the past
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84.5 percent. three years. We expect continued decreases during the
next five years, with spending falling to $852 million in
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• The long-term retail market for PC games will continue 2014 from $912 million in 2009, a 1.4 percent decrease
to deteriorate as console games attract more attention /o compounded annually.
from gamers and developers. Increased digital
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2010–14
c.
Australia 71 70 71 68 67 66 66 65 64 63 –1.2
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China 6 6 6 5 5 5 5 5 5 5 0.0
Hong Kong 21 23 22 20 20 20 20 19 19 19 –1.0
India 2 5 6 8 12 14 17 19 21 23 13.9
Indonesia 13 13 12 11 11 11 11 11 10 10 –1.9
Japan 757 779 764 715 704 694 685 678 663 652 –1.5
Malaysia 8 7 7 6 6 6 5 5 5 5 –3.6
New Zealand 10 7 7 7 6 6 5 5 4 4 –7.8
Pakistan 3 3 3 3 3 3 3 3 3 3 0.0
Philippines 6 6 5 5 5 5 5 5 5 5 0.0
Singapore 14 14 12 12 12 12 12 12 11 11 –1.7
South Korea 40 38 36 34 31 28 26 24 22 21 –7.5
Taiwan 17 16 15 14 14 13 13 12 12 12 –3.0
Thailand 10 11 13 13 14 15 15 16 16 17 4.0
Vietnam 2 2 2 2 2 2 2 2 2 2 0.0
Total 980 1,000 981 923 912 900 890 881 862 852 –1.4


Advertising game. Advertisers are seeking advertising opportunities
to reach specific demographics that are immersed in
• Video game advertising includes banner ads on game their game play. As long as the ads do not interfere with
Web sites, in-game advertising, and advergames. The their play, gamers react favorably to the ads because
emergence of dynamic advertising in online games will such ads add realism to the games.
be the principal driver of the market. Instead of static
ads that cannot be altered once a game has been • Display ads, advergames, and advertising on Web-
developed, dynamic advertising can be changed online. based game portals are the major advertising
Online gaming also enables advertisers to know how segments. Dynamic in-game advertising, currently
often their ads are seen. a small part of the advertising mix, will eventually
overtake static ads.
• Game publishers have been inserting ads into games
almost from the time that games were first developed. • An advantage of video game advertising is that players
The initial ads were static ads such as billboards that are actively participating in the game and are actively
appeared in the background of sporting events. In- engaging with the advertising.
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game advertising also includes product placements • In Australia, a number of major advertisers—including
such as a character drinking a brand of soda or driving Telstra, Nokia, Mitsubishi, 20th Century Fox, 7-Eleven,
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an identifiable automobile. These static ads had to be Coca-Cola, and Wrigley—are placing ads through
inserted when the games were developed, and they online games on the Xbox 360 and PS3. The Victorian
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could not be changed, therefore requiring months Transport Accident Commission is a major buyer of
of planning. /o video game advertising, placing in automotive and
• Sports games and games set in contemporary times other games its ads promoting road safety.
benefit from ads, because the ads give the games a
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• Video game ads are now being sold in a manner com-
more-realistic feeling. Ads would not be appropriate parable to TV ads, with buyers purchasing impressions.
in games set in historical times or fantasy worlds.
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Gamers in Australia spent 17 percent more time playing

For games that are not appropriate for in-game ad- online games in 2009 compared with 2008, thereby
vertising, players are rewarded with extra levels and enhancing the reach of video game advertising. We
c.
aftermarket add-ons when they first watch ads before expect video game advertising in Australia to increase
the games begin. to $23 million in 2014 from $8 million in 2009, a 23.5
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• With the advent of online gaming, a more advanced percent compound annual increase.
type of advertising became possible. Advertisers • The surging online game market in the PRC is
can now place ads that can be changed dynamically propelling video game advertising. Video game
through the Internet. For example, a billboard promo- advertising rose by 38 percent in 2009. Focus Media
ting a movie can be updated as new films are being and Bihu Technology dominate the in-game advertising
released. In this way, the advertising will always be market. As the online game market continues to
fresh. Additionally, advertising can be geographically expand, the market for video game advertising will
targeted, with specific messages hitting different areas. expand in tandem. We project video game advertising
Messages can also be programmed for delivery at to increase to $91 million in 2014, a 25.7 percent
specific times of day. Since online games are attached compound annual increase from $29 million in 2009.
to the Internet, it is also possible to track the number of
times a gamer is exposed to the ads and the amount of • Japan has the largest video game advertising market
time that the ads appear on the screen. in Asia Pacific, at $129 million in 2009. We expect that
growth in the online game market will boost advertising,
• Game publishers are actively pursuing advertising as and we project spending to rise to $239 million in 2014,
an additional stream of revenues. Dynamic in-game a 13.1 percent increase compounded annually.
advertising also provides a continuing source of
revenue compared with the onetime purchase of the

• South Korea, which has a significant online game • We expect total video game advertising in Asia Pacific
market, had the second-largest video game advertising to increase from $227 million in 2009 to $472 million in
market in 2009, at $35 million, a total we expect will 2014, a 15.8 percent compound annual increase.
nearly double to $68 million by 2014, a 14.2 percent
compound annual increase.

2010–14
Australia 1 5 6 7 8 10 12 16 19 23 23.5
China 2 11 15 21 29 40 51 62 76 91 25.7
Hong Kong ‡ 1 2 2 3 3 4 5 6 8 21.7
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India ‡ ‡ 1 1 3 3 4 5 5 5 10.8
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Indonesia ‡ 2 3 4 5 5 6 6 7 8 9.9
Japan 11 57 81 109 129 155 182 206 221 239 13.1
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Malaysia ‡ 1 1 1 1 1 1 2 2 2 14.9
New Zealand ‡ 1 1
/o
1 1 1 1 2 2 3 24.6
Pakistan ‡ 1 1 1 1 2 2 2 2 2 14.9
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Philippines ‡ 1 1 1 2 2 2 3 3 4 14.9
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Singapore ‡ 1 1 1 1 1 2 2 3 3 24.6
South Korea 3 16 22 31 35 42 51 57 62 68 14.2
c.
Taiwan 1 3 4 5 6 7 9 10 10 11 12.9
Thailand ‡ 2 2 3 3 3 4 4 4 5 10.8
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Vietnam ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡
Total 18 102 141 188 227 275 331 382 422 472 15.8


Latin America
The outlook in brief • End-user spending will rise to $1.7 billion in 2014,
growing at a 9.2 percent compound annual rate.
• New consoles will lead to a rebound in the console
game market. • Console/handheld games will grow by 7.3 percent
compounded annually from $607 million in 2009 to
• Increased competition from consoles will limit PC $863 million in 2014.
game growth.
• The PC game market is expected to reach
• Wireless network upgrades will expand the wireless $135 million in 2014 from $115 million in 2009,
game market. a 3.3 percent compound annual increase.
• Broadband growth will fuel an emerging online • The wireless game market will increase from
game market. $320 million in 2009 to $561 million in 2014, growing
• Growth in online gaming will boost video at 11.9 percent on a compound annual basis.
game advertising. • The online game market will reach $150 million in 2014
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from $61 million in 2009, growing by 19.7 percent on a
Overview compound annual basis.
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• The overall video game market in Latin America is • Advertising is expected to grow at a 14.4 percent
projected to grow by 9.3 percent compounded annually compound annual rate from $24 million to $47 million
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from $1.1 billion in 2009 to $1.8 billion in 2014. in 2014.
/o
m
co
Latin America 2005 2006 2007 2008 2009p 2010 2011 2012 2013 2014
Console/handheld games 360 402 521 647 607 664 714 764 815 863
c.
Online games 3 4 23 41 61 81 105 126 139 150

Wireless games 93 169 228 285 320 361 403 445 504 561
pw
PC games 89 100 104 108 115 120 126 130 133 135
Total end-user spending 545 675 876 1,081 1,103 1,226 1,348 1,465 1,591 1,709
Advertising 2 12 14 21 24 28 34 38 43 47
Total 547 687 890 1,102 1,127 1,254 1,382 1,503 1,634 1,756


2010–14
Latin America 2005 2006 2007 2008 2009p 2010 2011 2012 2013 2014 CAGR
Console/handheld games –17.8 11.7 29.6 24.2 –6.2 9.4 7.5 7.0 6.7 5.9 7.3
Online games — 33.3 475.0 78.3 48.8 32.8 29.6 20.0 10.3 7.9 19.7
Wireless games 69.1 81.7 34.9 25.0 12.3 12.8 11.6 10.4 13.3 11.3 11.9
PC games 4.7 12.4 4.0 3.8 6.5 4.3 5.0 3.2 2.3 1.5 3.3
Total end-user spending –5.7 23.9 29.8 23.4 2.0 11.2 10.0 8.7 8.6 7.4 9.2
Advertising — 500.0 16.7 50.0 14.3 16.7 21.4 11.8 13.2 9.3 14.4
Total –5.4 25.6 29.5 23.8 2.3 11.3 10.2 8.8 8.7 7.5 9.3
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lo
• Mexico has the largest video game market of the • Sony introduced its consoles in Mexico before it did
region, at $540 million in 2009, 48 percent of the total, in other countries, in part accounting for Mexico’s
ut
with Brazil next, at $309 million, 27 percent of the total. dominant position.
/o
m
2010–14
co
Argentina 46 57 71 87 88 97 108 118 127 135 8.9

Brazil 157 193 239 298 309 345 382 421 460 498 10.0
c.
Chile 41 49 62 77 77 86 95 103 111 119 9.1

pw
Colombia 33 41 50 60 60 66 72 77 84 88 8.0
Mexico 239 307 422 526 540 601 660 713 776 835 9.1
Venezuela 31 40 46 54 53 59 65 71 76 81 8.9
Total 547 687 890 1,102 1,127 1,254 1,382 1,503 1,634 1,756 9.3

Console/handheld market • A fourth console, the Zeebo, was launched in Brazil

and Mexico in 2009. The Zeebo downloads games
Consoles wirelessly by using smartphone technology (Qualcomm
chipsets) and contains 1 gigabit of flash memory and
• Sony launched the PlayStation 2 (PS2), PlayStation three USB ports that can be used to plug into a TV.
Portable, and PlayStation 3 in Chile, Argentina, Games are downloaded wirelessly and locked in the
Colombia, Brazil, and Venezuela in 2009. console. They can be played on a TV like other console
• Consoles were introduced earlier in Mexico. The PS3 games, but they cannot be copied.
was introduced in Mexico in 2007, and the PS2 in 2004. • The Zeebo is positioned as an antipiracy device.
The Xbox 360 and the Nintendo Wii were introduced in At $199 in Brazil and $189 in Mexico, the device is
Mexico in 2006.
Video games | Latin America 419

less expensive than other consoles, and games are • In Mexico, the Zeebo came preloaded with Crash
significantly cheaper, selling for around $12 each, which Bandicoot, Pac-Mania, Tekken 2, Nitro Kart 3-D,
is only slightly higher than the $10 price for pirated and Zenonia and also included one free hour of
games. The low price point reflects elimination of the Internet access.
production, packaging, and distribution of games
• Efforts to limit violent games gained momentum in
sold at retail. By contrast, the full price of a console
2009. In Brazil, legislation was enacted that will permit
game can be as high as $100, which accounts for the
the government to ban the creation, importation, or
high piracy rates in Latin America. The piracy rate for
distribution of offensive games. Grand Theft Auto,
console games is estimated at 95 percent.
Carmegeddon, and Postal had been previously
• Electronic Arts, THQ, Activision, Gameloft, Digital banned in Brazil. In Venezuela, the government is
Chocolate, and Capcom are among the developers seeking the right to ban violent games as part of its
that are producing games for the Zeebo. anticrime initiative.
• We expect low-cost Zeebo games and games for the
ok
Sony family of consoles to reinvigorate the market
• The recession led to a decrease in legitimate spending beginning in 2010 as economic conditions stabilize. We
lo
on console games in 2009. After growing at double- project spending to increase by 9.4 percent in 2010 and
digit rates during the prior three years, spending on by mid- to high-single-digit rates during the subsequent
ut
console games fell by 6.2 percent in 2009. four years.
• We expect that the new consoles introduced in Latin • For the forecast period as a whole, we expect spending
/o
America in 2009 combined with a more favorable grow at a 7.3 percent compound annual rate to $863
economic environment will lead to a rebound in the million in 2014 from $607 million in 2009.
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console game market in 2010.
• Brazil at 7.8 percent compounded annually and Mexico
co
• In Brazil, the Zeebo came preloaded with FIFA 09, Brain at 7.6 percent will be the fastest-growing countries
Age, and Action Hero 3-D, and free downloads were during the next five years, reflecting the added boost
also available for Need for Speed: Carbon, Quake, from the Zeebo in those countries.
c.
and Prey.
pw

2010–14
Argentina 31 34 41 51 47 51 55 58 61 64 6.4
Brazil 98 108 137 169 159 174 189 204 219 231 7.8
Chile 27 30 37 45 41 45 48 51 54 57 6.8
Colombia 23 26 31 37 34 37 39 41 43 45 5.8
Mexico 160 181 247 311 295 324 348 373 399 425 7.6
Venezuela 21 23 28 34 31 33 35 37 39 41 5.8
Total 360 402 521 647 607 664 714 764 815 863 7.3


PC game market • At the same time, growing penetration by PCs and an
expanding broadband market will widen the potential
• Piracy, estimated at 90 percent, is prevalent in the PC base for PC games, including games purchased to
game market, which limits the size of the legitimate play online.
market. At the same time, with fewer console platforms
available in Latin America compared with other regions, • On balance, we expect the PC game market to con-
the PC market has been expanding. In 2009, spending tinue to expand but at slower rates than during the past
on PC games rose by 6.5 percent. five years.
• The PC game market will be affected by a number of • We project the PC game market to grow by a com-
competing trends. The introduction of new consoles in pound annual rate of 3.3 percent from $115 million in
2009 will make the market more competitive and will 2009 to $135 million in 2014.
cut into spending growth.
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2010–14
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Argentina 7 8 9 9 9 9 10 10 10 10 2.1
ut
Brazil 25 27 27 28 30 32 33 34 35 36 3.7
Chile 7 7 7
/o
7 7 8 8 8 8 8 2.7
Colombia 5 5 5 5 6 6 6 7 7 7 3.1
m
Mexico 40 47 51 54 58 60 63 65 67 68 3.2
co
Venezuela 5 6 5 5 5 5 6 6 6 6 3.7
Total 89 100 104 108 115 120 126 130 133 135 3.3
c.

pw
Wireless games • Mobile developers such as Glu Mobile and Gameloft

are becoming established in Latin America, which
• Wireless games have a large potential in Latin America. should further promote growth.
Wireless penetration averaged nearly 90 percent in
2009 compared with 26 percent for broadband, and • Spending on wireless games rose by 12.3 percent in
wireless carriers are upgrading their networks to 3G. 2009 to $320 million. We expect comparable increases
during the next five years, averaging 11.9 percent
• In each country, 3G networks were launched during the compounded annually to $561 million in 2014.
past two years, and coverage will be expanding during
the next five years. These upgrades will make it easier
to download wireless games to mobile handsets.

2010–14
Argentina 8 14 18 22 25 28 32 36 40 44 12.0
Brazil 31 53 64 82 94 107 119 134 152 172 12.8
Chile 7 11 15 19 21 23 26 29 33 36 11.4
Colombia 5 9 12 15 16 18 20 22 25 27 11.0
Mexico 37 72 108 135 151 170 189 205 233 259 11.4
Venezuela 5 10 11 12 13 15 17 19 21 23 12.1
Total 93 169 228 285 320 361 403 445 504 561 11.9
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lo
Online games • With the current generation of Sony consoles that
ut
feature online access being introduced in Latin America
• The online game market has been hampered by in 2009, the potential market for online games will
low broadband penetration and fewer consoles that
/o increase. Sony also established local PlayStation
connected to the Internet. Online spending totaled Networks in Latin America.
only $61 million in 2009, just 5.5 percent of end-user
m
spending on video games. In North America and • The broadband household universe in Latin America
EMEA, online games constituted 14.5 percent and 16.5 also is expanding. During the past two years, the
co
percent, respectively, of total end-user spending on number of broadband households nearly doubled, and
video games. In Asia Pacific, the online share was during the next five years, we expect it will more than
c.
35 percent. double. By 2014, a majority of households in Latin

America will have broadband connections compared
pw
Online share of end-user spending on video games (%) with 26 percent in 2009 and less than 10 percent as
recently as 2006.
50
• These developments will support substantial growth in
40 35 online gaming. We project the online game market to
rise to $150 million by 2014, growing at a 19.7 percent
30 compound annual rate.
20 16.5
14.5
10 5.5
0
Latin America North America EMEA Asia Pacific

2010–14
Argentina ‡ ‡ 2 3 5 6 8 10 11 12 19.1
Brazil 2 2 8 14 20 25 33 40 44 48 19.1
Chile ‡ ‡ 2 4 6 8 10 12 13 14 18.5
Colombia ‡ ‡ 1 2 3 4 5 5 6 6 14.9
Mexico 1 2 9 16 24 34 44 53 58 63 21.3
Venezuela ‡ ‡ 1 2 3 4 5 6 7 7 18.5
Total 3 4 23 41 61 81 105 126 139 150 19.7
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Advertising • The new consoles and growth in the online game
ut
market will expand the potential for video game
• Video game advertising has been limited in Latin advertising.
America because of the late introduction of some of the /o
consoles in the current generation of consoles, which • We project video game advertising to increase from
in turn limited spending on console games made for $24 million in 2009 to $47 million in 2014, a
m
those platforms. 14.4 percent compound annual increase.
co
• A small online game market further limited the market

for dynamic in-game video game advertising, which
permits updates only through games played online.
c.
pw

2010–14
Argentina ‡ 1 1 2 2 3 3 4 5 5 20.1
Brazil 1 3 3 5 6 7 8 9 10 11 12.9
Chile ‡ 1 1 2 2 2 3 3 3 4 14.9
Colombia ‡ 1 1 1 1 1 2 2 3 3 24.6
Mexico 1 5 7 10 12 13 16 17 19 20 10.8
Venezuela ‡ 1 1 1 1 2 2 3 3 4 32.0
Total 2 12 14 21 24 28 34 38 43 47 14.4


Index of tables and charts†
Video games Asia Pacific

Video game market by component . . . . . . . . . . . . . . . . . . 406
North America Video game market growth by component (%) . . . . . . . . . . . . 407
Video game market by component . . . . . . . . . . . . . . . . . . 382 Video game market by country . . . . . . . . . . . . . . . . . . . . 408
Video game market growth by component (%) . . . . . . . . . . . . 383 Console/handheld game market . . . . . . . . . . . . . . . . . . . . 410
Video game market by country . . . . . . . . . . . . . . . . . . . . 383 Online game market . . . . . . . . . . . . . . . . . . . . . . . . . . 412
Console/handheld game market . . . . . . . . . . . . . . . . . . . . 385 Wireless game market . . . . . . . . . . . . . . . . . . . . . . . . . 414
Online game market . . . . . . . . . . . . . . . . . . . . . . . . . . 387 PC game market . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415
Wireless game market . . . . . . . . . . . . . . . . . . . . . . . . . 388 Video game advertising market . . . . . . . . . . . . . . . . . . . . 417
PC game market . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389
Video game advertising market . . . . . . . . . . . . . . . . . . . . 390
Latin America
Video game market by component . . . . . . . . . . . . . . . . . . 418
Europe, Middle East, Africa (EMEA) Video game market growth by component (%) . . . . . . . . . . . . 419
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Video game market by component . . . . . . . . . . . . . . . . . . 391 Video game market by country . . . . . . . . . . . . . . . . . . . . 419
Video game market growth by component (%) . . . . . . . . . . . . 392 Console/handheld game market . . . . . . . . . . . . . . . . . . . . 420
lo
Video game market by country . . . . . . . . . . . . . . . . . . . . 393 PC game market . . . . . . . . . . . . . . . . . . . . . . . . . . . . 421
Console/handheld game market . . . . . . . . . . . . . . . . . . . . 396 Wireless game market . . . . . . . . . . . . . . . . . . . . . . . . . 422
ut
Online game market . . . . . . . . . . . . . . . . . . . . . . . . . . 398 Online share of end-user spending on video games (%) . . . . . . . 422
Wireless game market . . . . . . . . . . . . . . . . . . . . . . . . . 401 Online game market . . . . . . . . . . . . . . . . . . . . . . . . . . 423
/o
PC game market . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403 Video game advertising market . . . . . . . . . . . . . . . . . . . . 423
m
Video game advertising market . . . . . . . . . . . . . . . . . . . . 405
co
c.
pw
†Key to symbols used in the tables and charts

p = preliminary
NA = not available
— = no spending that year
Totals in tables and charts may not total arithmetically due to rounding.
Index of tables and charts

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382 North America

391 Europe, Middle East, Africa (EMEA)

microtransactions, is also aiding the growth of the market.

the online market, helping expand the demographic base

378 PricewaterhouseCoopers | Global entertainment and media outlook: 2010–2014

center with a Blu-ray player and digital video recorder

Video games | Summary 379

who do not have a handheld device, as previous owners of

Combined with interest in the new generation of consoles,

380 PricewaterhouseCoopers | Global entertainment and media outlook: 2010–2014

which provides games from different publishers. More

Impulse have joined the market. Additionally, many of the

Video games | Summary 381

The outlook in brief • Consumer spending on games will expand at a 6.1

Video game market by component† (US$ millions)

†At average 2009 exchange rates.

382 PricewaterhouseCoopers | Global entertainment and media outlook: 2010–2014

†At average 2009 exchange rates.

Video games | North America 383

US in 2009 were exclusive Wii games, with Wii Sports

(US$192), has sold more than 2 million units in Canada

384 PricewaterhouseCoopers | Global entertainment and media outlook: 2010–2014

Console/handheld game market† (US$ millions)

†At average 2009 exchange rates.

Online games Nintendo Wii Shop—enable gamers to purchase

Video games | North America 385

$2.1 billion in 2009 to $3 billion in 2014, increasing at a

386 PricewaterhouseCoopers | Global entertainment and media outlook: 2010–2014

†At average 2009 exchange rates.

games, word games, and puzzles. These casual games

games in 2009. Glu Mobile.

Video games | North America 387

Wireless game market† (US$ millions)

PC games to play certain game genres such as strategy games

and MMOGs because a keyboard and mouse provide

388 PricewaterhouseCoopers | Global entertainment and media outlook: 2010–2014

†At average 2009 exchange rates.

Advertising advergames. Volkswagen showed off its new, 2010 GTI

vehicle in an iPhone game called Real Racing GTI App,

Video games | North America 389

how long people are exposed to ads in online games.

of the United States, is a relatively strong market for

will grow to $224 million in 2014.

Video game advertising market† (US$ millions)

†At average 2009 exchange rates.

390 PricewaterhouseCoopers | Global entertainment and media outlook: 2010–2014

The outlook in brief Overview

a 2.0 percent compound annual decrease.

Video game market by component† (US$ millions)

†At average 2009 exchange rates.

Video games | EMEA 391

2 was banned in Germany. The German market will

392 PricewaterhouseCoopers | Global entertainment and media outlook: 2010–2014

Czech Republic 19 23 29 32 33 36 39 42 46 50 8.7

†At average 2009 exchange rates.

Video games | EMEA 393

in the three years since its launch. It has an installed

base of over 6 million units in the UK and over 4 million

394 PricewaterhouseCoopers | Global entertainment and media outlook: 2010–2014

Video games | EMEA 395

Czech Republic 12 13 16 19 17 18 19 20 21 23 6.2

†At average 2009 exchange rates.