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PC Remains the Most Lucrative Platform
PC gaming had generated global revenues of $11 billion in 2008, taking more money than any single handheld or home console on the market today.
That was the conclusion of a new report commissioned by the PC Gaming Alliance.
The report, written by DFC Intelligence, states that “even in Europe and North America” the PC is the “leading single platform” for games, with those two key markets together providing the platform with over $6 billion in revenues.
One key reason for growth, says the Alliance, is widespread broadband penetration. Internet-based services made up two of the biggest three trends for the PC gaming market in 2008, as rising broadband popularity aided the growth of online digital distribution via platforms such as Valve’s Steam, as well as help accelerate a market of free-to-play games that are infused with microtransactions.
When it comes to profits via genres of software, there’s an obvious leader in the field. “Several Asian MMOs [that were released more than five years ago] are generating over $100 million in annual revenue,” the Alliance claims, while World of Warcraft is generating over $1 billion in annual revenue. “The Lich King expansion to World of Warcraft outsold its predecessor,” adds the report.
In regards to Western entries into the MMO market, the Alliance states that two "major" new subscription MMOs "sold over 1 million units at retail.” Here the alliance is referring to Age of Conan and Warhammer Online.
However, the Alliance’s summary report does not mention that Age of Conan developer Funcom had recently announced quarterly operating losses of $23.4 million, after reducing the number of its servers from 49 to 18 due to substantially underperforming population figures. Last month, Funcom’s CFO resigned.
Warhammer Online developer Mythic, on the other hand, has on several occasions faced rumours that it will be reducing the number of its own servers, has also played down the severity of staff cuts. In early February, the group had been hit by a heavy round of layoffs, yet – as a subsidiary of a publisher that aims to cut 1,100 of its workforce – the link between the fortunes of Warhammer and Mythic remain hazy.
The report added that low-spec PCs (as well as netbooks) were driving the growth of casual games, especially in emerging markets.
You can download The State of the PC Gaming Industry in 2008 here: [pdf]
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The key point is the PC gaming landscape have ceased to be the domain of retail games. Its being fragmented into subscription-based, ad-based, downloadable, etc. The PC gaming alliance is doing right by changing the method of tracking the revenue. Retail is now one of the many subsections of PC gaming sales channel hence the old way of tracking the industry is obsolete.
As for the health of the PC gaming industry, factors such as more leisure activities on the PC(youtube, facebook, etc), and external ones such as new consoles, handheld and the Iphone, all of these decreases the market size of PC gaming. Its all part of market dynamics. But after all of this change is done, PC gaming will be leaner and meaner. The graphical arms race will stop, more indie games on the pc, more social games (VW, MMO), better browser games.... All of these will grant the PC its truly unique identity compared to consoles, handheld and mobile gaming.
Is the chairman of the PC Gaming Alliance someone called "Dreamhunk"?
ha ha your high end pc gamer is like the borg. we rule the internet we live on line. we have access to alot of information. Besides I don't think they would hire me with my bad writing :P
the world doesn't play on the consoles they play on the pc. :)
We don't want to hear about your sexual fantasies, thank you very much.
Another article, providing a bit more information on this subject:
http://news.bbc.co.uk/1/hi/technology/7960498.stm
here is a much better article
http://timesonline.typepad.com/technology/2009/03/pc-gaming-is-th.html
Report commissioned by the PC Gaming Alliance praises PC gaming? You don't say? :)
Still if it's anywhere near true, the gaming media have been selling us a lie for the last 18 months in announcing that PC gaming is dying.
They've been selling misinformation. They were using stuff like NPD numbers, which only tracks retail sales.
IIRC, Ironclad recently said that 50% of Sins of a Solar Empire's sales were through digital distribution. NPD numbers will be WAY off in that case. Nobody will know the actual number of sales except Ironclad/Stardock.
So no, PC gaming isn't dying. Never has been.
I wonder how something like Final Fantasy XI was factored into this?
The PC is always going to have a headstart when you think of the sheer number of MMO players, and the only one on consoles is the aforementioned Final Fantasy. The numbers are skewed somewhat - one title generated just under a tenth of all revenue, so you have to think that perhaps, it's not as profitable for people who aren't Activision-Blizzard.
I seem to recall that even for them, they made more from the 360 version of Call of Duty 4 than the PC version.
there is 3 mmo's on console they have been all flops.
Dreamhunk's gonna have a field day when he sees this.
no this really old news for me, yes pc gaming is doing very well. flash games is making more money than consoles. Mmo's make over 500 million a year wow being the biggest. steam makes alot more money than retail
how I think this might chamge all that.
http://www.gamasutra.com/php-bin/news_index.php?story=22875
A related news article (published today) regarding MMOs:
http://news.bbc.co.uk/1/hi/technology/7960785.stm
I can just imagine Dreamhunk, having just wet himself with excitement, hunched over his keyboard, typing us a borderline-incomprehensible essay.