Analyst: Hardcore Gaming Has Become Stagnant

By Colin Tan on February 23, 2011, 7:52PM EDT
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Recent analyst findings by investment bank Digi-Capital have found that, in the past two years, hardcore console game sale growth has become relatively stagnant when faced against the rising social/mobile gaming scene.

According to Digi-Capital's findings, the "historically strong" home console games market sector has been flat to down in recent years while the online, social and mobile games market have been growing progressively stronger each year with speculation that it will grow global revenue to a hefty $87 billion market.

Digi-Capital also notes that while social/mobile games are high growth, they are also "unconsolidated." Entry barriers into the market remain low with strong competition without any one dominance from "major competitors," as a result many independents share the same level ground as established competitors.

Global Video Game Sector Revenue

Mobile games revenue hit $19 billion in 2009, claiming roughly 30 percent of global games revenue and is predicted to reach at least $44 billion by 2014, about 50 percent of the global games market. Digi-Capital points out that there are currently over 200 million unique casual online users, more than 700 million social online users active on a monthly basis, 20 million MMO subscribers and over ten billion iPhone apps, 55 percent of which are games, downloaded.

Meanwhile, console games, due to their high development costs, essentially need to turn over at least half a million copies in order to break even.

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