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Analyst: Digital game revenue to reach $24 billion this year

Analysts have predicted 16% growth for digital game revenue over 2011, peaking at $24 billion.

A new report from independent research firm Ovum also prophesises the digital market will be worth $56 billion by 2016.

The report expects a 26% compound annual growth rate over the next five years in the digital realm, and claims free to play games see profit margins of 50–75%, as opposed to the 20–30% of retail releases.

Ovum also cites the explosion of casual markets and online play as motivating factors for the increase in revenue, but is a little cagier on cloud and streaming gaming, socialisation and gamification.

Thanks, IndustryGamers.

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