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Study – games revenue to hit $70 billion by 2017, PC largest contributor

Saturday, 9th June 2012 22:16 GMT By Stephany Nunneley

A new study from market research firm DFC Intelligence predicts industry revenue across consoles, mobile, PC and the web will grow from $52 billion in 2011 to $70 billion in 2017.

The report, posted over on Gamasutra, noted casual and other new consumers are expanding the market, but it’s the core gamer – males between the ages of 12 to 30 years old – which will drive the growth in revenue.

“Digital distribution, already widely accepted among core gamers globally, is clearly broadening access to products and driving much of the industry growth,” said DFC Intelligence CEO David Cole, who expects digital to make up 66% ($46.2 billion) of revenues by 2017.

Cole feels more firms focusing on browser and social titles need to gain core support in order to grow revenue

“The bottom line, is core gamers spend money on products they like and right now the game offerings on sites like Facebook are simply not appealing to that demographics,” he said.

In order to compile its figures for the study DFC pulled numbers from Xfire, Live Gamer, and GamerDNA over the last five years for its study.

DFC found during its study titles played on PC will make up the largest percentage of the revenue with 39% ($27.3 billion), due to the metrics pulled from the aforementioned gaming networks. The firm found titles such as Diablo III, Minecraft, and League of Legends easily pulled in 1 million DAU despite little or zero retail presence.

As far as other formats were concerned regarding revenue growth, DFC expects consoles to contribute 36% ($25.2 billion) and mobiles titles to contribute 25% ($17.5 billion) to revenue.

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26 Comments

  1. TheWulf

    Yup. PC gaming is dying. Oh those pirates.

    Where’s loki and the likes when you need them?

    #1 3 years ago
  2. Kalain

    But, haven’t we known this for quite a while? I’m sure I’ve read the same thing last year and the year before..

    #2 3 years ago
  3. mad1723

    The problem with most of the stats of PC sales is that they don’t have the Steam stats, which tend to count for quite a lot of sales. Honestly, if stats included digital distribution, figures would look a lot less bleak for most games.

    PC gaming has never been dead, will never be and the same can be said about consoles. There is a market for both, and they have their ups and downs, as with every business in the world.

    I’m happy to know that most of E3 demos were done on PC builds though, shows the way the industry sees the actual consoles. I think everyone realizes that the actual consoles have to be replaced for the good of the industry.

    When I say that the actual consoles are starting to show their age, it’s not just in graphics department. Gameplay wise, some games are limited by the limited power of the consoles. Just look at BF3. It’s impossible to do more than 24 players due to the tiny amount of memory the actual consoles have. It’s not just about graphical fidelity, but about gameplay scale. Skyrim had a similar problem with RAM on the PS3. It’s time for those consoles to wave goodbye and be replaced by the next great thing :)

    #3 3 years ago
  4. DSB

    It’s not just the Steam stats that are classified, but yeah.

    What you want to look at is the publisher earnings. A few years ago EA would list both revenue and number of titles per platform, and the PC was outperforming all the others, even though it had the fewest number of titles.

    I don’t think publishers have been very vocal about it, but obviously there’s a reason why someone like EA starts churning out PC games and investing in clients.

    I think the ghost of piracy is too convenient to really get rid of. If a multiplatform or console title fails, a studio gets punished. Or the used game market. If a PC title fails, then obviously it’s down to piracy. I think it’s just taking advantage of peoples general ignorance.

    Executives love a good excuse.

    #4 3 years ago
  5. OlderGamer

    I love my PC wouldn’t trade it for any console. I do need to get a new one tho, mine is about 5 years old now.

    #5 3 years ago
  6. TheWulf

    @5

    Yup, you should. The graphics of newer hardware are a bit ridiculous. And GW2 looks oh so, so beautiful maxed out.

    #6 3 years ago
  7. roadkill

    “games revenue to hit $70 billion by 2017, PC largest contributor” Well that was expected. Blizzard proved with Diablo 3 that PC gamers are incredibly rich people who throw their money at you for pretty much anything you’d want to sell them.

    #7 3 years ago
  8. TheWulf

    @7

    Call of Duty. Back at you, console owner.

    I remember watching a video of a soldier humping a lamp post repeatedly on Youtube. And where the player was told to open a door because the AI couldn’t figure it out.

    I thought to myself, at the time: “There are people who actually bought this?

    I didn’t buy either Call of Duty or Diablo III. Some of us are smarter than others. Italicised implications entirely necessary and warranted.

    #8 3 years ago
  9. Maximum Payne

    Maybe lot of people bought Diablo 3 because there isn’t similar game on market for years ?

    #9 3 years ago
  10. NeoSquall

    I wonder why the study hasn’t included Raptr statistics.
    I’ve used both Xfire and GamerDNA in the years, but now it’s a solid 1,5 years I’m only using Raptr as my stats/achievements tracking system for both PC and console games.

    #10 3 years ago
  11. Pytox

    #9 Torchlight, Titan quest are few …

    #11 3 years ago
  12. OlderGamer

    @Max, I was gonna say the same thing about Titan Quest:Imortal Throne. It is still the king of the genere imo.

    And while Torchlight is a budget game compared to Diablo III, Torchlight was made by three guys that made Diablo and Diablo II. I have played the Torchlight II beta(long before the public open stuff) and have to say it eclipes Diablo III. All my two cents tho, your milage may vary.

    Iron Lore guys(TQ:IT) are also doing Grim Dawn. And that looks fantastic.

    As far as Blizzard goes they get the lion share of game media attention. And their games sell big numbers. But there is a lot more going on with PC gaming then just them.

    #12 3 years ago
  13. TheWulf

    People buy Diablo III for the same reason that people buy Call of Duty. Which is the same reason that people buy “fashionable” brand name clothes or food. They want to be on the “inside.”

    Blizzard is a pop-culture sensation. Now, this makes my skin crawl and it’s why I won’t touch anything by them, but for those who want to be on the “inside” of that, that’s where they go in the gaming world. There are some big names that some gaming cliques just won’t talk to you if you haven’t played. They’re the “in thing,” so everyone knows.

    Pick any big name like that. Halo, Grand Theft Auto, and so on.

    Marketing means a lot more than making a good game. If you make a DECENT game and you have amazing marketing, it’ll sell more than other examples, just because people want to be as hip and cool as their friends in their clique. “Hey! I bought Diablo III/WoW/Call of Duty/Halo/Gears of War! We can be friends now, right???!”

    So even if better examples of these things exist, they still sell.

    I remember when Coca-Cola was thinking about marketing a thin can of coke that held about 50% of what a regular coke can does, and costs eight times as much. “People will buy it because they want to be cool, they want to be cooler than other people. And we tell them how to be cool like that.”

    Diablo III is admittedly an entirely average, mediocre game. But Blizzard’s marketing empire has people convinced it’s the “in thing,” so better games like Torchlight II won’t sell as much. Many people are easily manipulated like that and have a hard time thinking for themselves. It’s a really sad situation.

    But we all know it’s true. See coke example.

    As for myself? Fuck the trends. I’ll buy and hype games if I like them. Even if it’s unpopular to like them. People believe what marketing companies tell them to think, most of the time. So… this is why I have a hard time taking most consumers seriously.

    #13 3 years ago
  14. Maximum Payne

    Titan Quest released in 2006
    And Torchlight was budget game in 2009.
    Now is 2012 people. We had what ? 2-3 dissent games after Diablo 2 ?

    #14 3 years ago
  15. Da Man

    Some people are yet to discover the meaning of a word ‘marketing’, they’re too busy convincing themselves that all toys are made equally good and if anything their fav one is way better..

    Them internet warriors, biggest victims of advertising, ironically..

    But then you really wonder sometimes why Wii sold so well, huh. Oh well, I’ll be playing my superior, hardcore, obscure Joy Ride Turbo instead of the pesky, trendy, disgusting Mario Kart.

    #15 3 years ago
  16. DSB

    Diablo has a pretty fond place in a lot of gamers memories. For some people playing games may be all about politics, and either fighting evil conspiracies, or supporting valiant freedom fighters, who certainly aren’t out to make money on anything, and undoubtedly will spend any kind of profit on improving life for the world’s children.

    But I think most people are fine not buying into that, and I think a lot of people just wanted to see the next installment in the series.

    There are plenty of ARPGs out there, and there’s no rule saying that you should only like one, or never like another. There are lots of narrowminded people who may think that way, but then there are also people who consider corporations like Microsoft or Sony an actual reflection of their personal values.

    In short: People are fucked up. Play what thou willt.

    #16 3 years ago
  17. Christopher Jack

    People buy games because they like them, I don’t like Diablo, CoD or the Wii but that means absolutely nothing. But I truly dislike being attached to a service for an offline game. I’ve grown accustomed to Steam as its reliability has sky rocketed over the years & I’ve yet to have a single problem with it itself in 2012. BUT, I could imagine how those who’d rather not use Steam will get annoyed when forced to for a certain game they want. MOST will reluctantly give in, others will boycott & some will pirate. How ever, unrefined services like Origin piss me off, shit like that should remain optional until its out of the beta stage. I find Ubisoft’s client annoying too but thankfully it hasn’t caused any problems. L.A. Noire’s poorly implemented social club has prevented me from playing it altogether. So the only service I willingly accept for any game is Steam, but again, I don’t think requiring it is the perfect solution to piracy, I’ve seen games like DoWII bypass it, but I do think it’s one of the most solid solutions compared to always on DRM, etc.

    #17 3 years ago
  18. lkm

    #14 your fucking stupid i swear. this is the most fucked up comment in the world.

    #18 3 years ago
  19. Kalain

    @14

    So by your comments, I bought D3 because I wanted to be fashionable? Or, maybe, I actually bought it because I enjoyed playing the beta and wanted to buy it. Did that occur to you?

    A lot of people buy games because they want to play them or play them, online, with their friends. That has nothing to do with being ‘inside’ or fashionable. You are painting people who like a particular game with the same brush without actually meeting those people and understanding why they like the game? Yes, marketing will help, but when you get to my age it all comes down to what you like to play.

    #19 3 years ago
  20. DSB

    Whole lotta trollin’ going on.

    @20 I’m pretty sure it did not occur to him.

    #20 3 years ago
  21. Erthazus

    @14, DUDE. Diablo III is not Call Of Duty.

    Diablo III was developed for 12 fucking years. They changed the game 3 times. They changed the engine 3 times. Game was ready 2 years ago and after that they polished it for two more years.

    What are you talking about? I waited for this game for 12 years. I wanted to play it because Diblo I-II were masterpieces.

    Dude, i agree with you about marketing campaign and etc. but stuff about Diablo III what you said is pure horse shit.

    Diablo III in my opinion is not the most perfect thing, but it’s a solid game and i enjoy it a lot.
    I will give you a small example, i finished INFERNO and played 200 hours with my Wizard and now i’m trying to finish Inferno with Monk and i’m currently 35 level Demon hunter. I enjoy it. For me this game is not just fun, for me this game is about “Mechanics” and “Team Play”. Killing elites in inferno with shields and mortars with sexy minions is so awesome.

    Today i showed Patrick Garratt and another guy Secret Pony level with rainbows and teddy bears and holy shit what was their reaction. I was stupid that i forgot about Prnt Screen because their reaction was funny as hell.
    WE.LOVE.DIABLO III.

    #21 3 years ago
  22. DSB

    I got the cow level yesterday.

    Priceless stuff :P

    #22 3 years ago
  23. Erthazus

    Pfff… Cow level – old news

    Yesterday I and my friend discovered a cave full of Blizzard employees and the main objective was to kill Game Director (Boss) (and if you kill him you get Legendary achievement) :D

    There is also a well with Blizzard testers. We found it too, but you don’t get anything. :(

    #23 3 years ago
  24. Da Man

    Diablo isn’t Call of Duty.

    I like Diablo and think CoD is bad because I feel like it.

    Therefore, Diablo is one thing, CoD is another.

    If I say butthurted is a legit engrish word then it is so. If can’t tell marketing from advertising then it must be so as well.

    Simple really.

    Why? Because I have nothing better to do than to argue in the comment sections at 3 a.m. and play Diablo afterwards.

    Good f grief, haloperidol probably isn’t enough here.

    #24 2 years ago
  25. viralshag

    @14, so people buy D3 to be fashionable and you buy Torchlight 2 to be the renegade cool hip kid, right? Sticking it to the man and all that? Right you are…

    :/

    @23, He’s just a troll and a fanboy about certain games (look at anything GW2 / D3) but he tries to hide it in overly-long bullshit filled blog posts that hold absolutely no value other than to inflate his own ego when he reads it back to himself.

    #25 2 years ago
  26. sh4dow

    @23

    And for the reasons you mentioned in the first couple of paragraphs of your comment, Diablo III is all the more of a disappointment.

    @TheWulf

    Well, here’s at least somebody who mostly agrees with you.

    #26 2 years ago

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