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US Game Console Market To Grow

US Game Console Market To Grow

The US game console market is forecast to generate cumulative revenues of $66 billion through 2012, according to a new report from JupiterResearch.

The US Console Games Forecast, 2007 to 2012 report says that competition for console households over the next five years will be fiercer than ever and will result in a close sharing of the installed base of systems among platform suppliers.

JupiterResearch anticipates the competitive field will be much closer than in the past; at the end of the current cycle in 2012, the range in market shares is projected to just under 10% as compared to the 33% range in market shares at the end of the last cycle in 2005.

Michael Gartenberg, vice president and research director at JupiterResearch, said: “Each platform supplier brings a special set of strengths to the market and to competition in current generation of systems.

“On top of that we have seen a dramatic rise in the proportion multiplatform releases from independent publishers over previous generations. This is no longer the winner-takes-all market of the past.”

Despite this fierce battle among platform suppliers, the report contends that the market is will remain strong through the remainder of the system cycle. Console market revenue growth will reach a high of $12.8 billion in 2007 when new platform sales are strongest. And, in 2008 JupiterResearch expects US household penetration to surpass the 50% mark.

David Schatsky, president of JupiterResearch, said: “Over the last five years the market has steadily added a small number of additional households.

“That the industry has continued to sustain growth – despite reaching such high levels – is a testament to the continued innovation by software producers and hardware manufacturers.”

Recent research from ComScore revealed that the number of unique visitors to online gaming sites has reached almost 217 million worldwide – a year-on-year growth of 17% (see Visitors To Online Gaming Sites Reaches Almost 217 Million).

Meanwhile, Yankee Group said that the global in-game advertising market, which generated $77.7 million globally in 2006, continues to develop at an exponential rate (see Ofcom Plans New Public Service Channel To Rival BBC).

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