According to a worldwide PC gaming industry report released by the PC Gaming Alliance, PC gaming was a $10.7 billon (£5.57B) industry in 2007.

The first “Horizons” report from the group states that a major growth sector for the industry was the Asian online market. It also states that online PC gaming revenue reached $4.8 billion (£2.6B) in 2007, with digital distribution says contributing $2 billion (£1.1B) and in-game ads garnering $800 million (£430M).

Retail sales accounted for only 30% of the industry’s total revenue, according to the study. Revenue generated online was nearly double that of revenue generated through retail channels.

PCGA president Randy Stude said of the findings that, “Our analysis clearly shows incredible growth in online PC gaming, proof that this industry is far stronger than anyone has reported. Today’s consumers shop where they live - online.”

DFC Intelligence analyst David Cole also discussed the analysis, saying,“By pioneering new business models, the PC has quietly remained the single leading platform for games, not only in terms of consumer usage, but revenue generation. The most fascinating thing about PC gaming is its ability to attract such a diverse audience, both demographically and geographically. The real key has been the rapid growth in penetration of broadband-connected PCs in all markets around the world. Broadband-connected PCs are the key driver of growth for PC gaming.”

He added, “DFC Intelligence estimated that by the end of 2007 less than one-third of households in the top 20 markets for games had a high-speed Internet connection. That clearly indicates that there is still plenty of growth to come.”

In January, the NPD reported that the games industry enjoyed an $18 billion (£9.7B) 2007 in the US alone, across all console and handheld hardware and software sales. This number did not include any revenue generated by PC game retail or online sales.

The full Horizons report is available to all PC Gaming Alliance members.