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Console revenues to grow 29% by 2017

Console revenues to grow 29% by 2017

Wed 30 Oct 2013 9:03pm GMT / 5:03pm EDT / 2:03pm PDT
BusinessHardware

Report finds Xbox One, PS4 will draw 61% of revenues from packaged goods, predicts "blood bath" for control of living room

John Riccitiello isn't the only one expecting a console comeback. DFC Intelligence and Live Gamer today released a new report projecting significant growth in the worldwide console market through 2017, thanks largely to the forthcoming Xbox One and PlayStation 4. The firms expect console software revenues to jump from $18.5 billion this year to $24 billion in 2017, a jump of more than 29 percent.

The report also expects an increase in the amount of game revenue drawn from digital sources instead of packaged software, although "the high-end of the market" will still be made up mostly of offline purchases. By 2017, 36 percent of Xbox One and PS4 revenue is projected to come from digital offerings, with 61 percent still accounted for by physical goods. The remaining 3 percent of revenue will be advertising. (Additional digital revenue from offerings like video or music content was not considered.)

Despite the growth, the report still raised a few challenges for the console market. Consoles will need to fight with mobile devices for users' time, PC gaming will still draw more money overall, and Sony and Microsoft will be facing more than just each other in the race to offer a do-it-all set-top box.

"The battle for digital delivery in the living room could turn into a blood bath with no clear winners," said DFC Intelligence CEO David Cole. "The challenge for content providers will be how to best monetize their product for any given platform or market."

8 Comments

Steve Goldman Journalist.

81 92 1.1
yeah right

Posted:11 months ago

#1

Bruce Everiss Marketing Consultant

1,692 594 0.4
YYSSW

This is just made up stuff.
My opinion that console revenue will decline by 17.632% by 2017 is just as valid.

Posted:11 months ago

#2

Alfonso Sexto Lead Tester, Ubisoft Germany

820 653 0.8
Most likely. The new models have a bigger focus in digital and a lot more possibilities for F2P model to develop. Not to mention that they are a lot more Indie friendly.

@Bruce

Excuse if I find more trustworthy DFC Intelligence and Live Gamer today that your opinion that every person who buys a smartphone is a hardcore gamer who will spend money on it.
Less YYSSW and more matching the preorder numbers (and the 2 9Million shipped copies of GTAV) A Marketing Consultant should see the situation in a realistic way, not only the way he would like it to be.

Posted:11 months ago

#3

Justin Biddle Software Developer

159 484 3.0
@Bruce "YYSSW"? That's your best come back? Considering you throw figures out at the drop of a hat that you instantly claim prove your point despite it very much being your own interpretation of those figures often going so far as ignoring the text of those reports which state the opposite to your own reasons, your response is laughable in the extreme.

Edited 2 times. Last edit by Justin Biddle on 31st October 2013 11:29am

Posted:11 months ago

#4

André Gomes de Oliveira C++ Programmer, Funcate

8 5 0.6
Up to a point I agree. Console sales have been slowing down due to the fact that most people who are interested in a console problably bought it already. We're down to the late adopters who wait for the prices to go down as much as possible (I know two of those who got their PS3 this year).

I think sales will go back up simply because we will have brand new boxes coming to the market. So the cycle will begin again. Enthusiasts and early adopters will make sure the consoles fly off the shelves this year and early next year.

What I don't know is weather or not the next generation of consoles will conquer the hearts and minds of tthe next generation of gamers, I think they have potential (and being a playstation fan, I still must admit that Kinect is problably the reason young children will get into gaming).

Edited 2 times. Last edit by André Gomes de Oliveira on 31st October 2013 11:34am

Posted:11 months ago

#5
Ok, we have seen a number of reports in GI.Biz on the possibility of a new era for consoles with Gen-8 - now I think its time for some opinion pieces on the possibility of a collapse with this next generation and the rise of the PC... unless the editorial team feels its capable of offering an alternative point of view?

Posted:11 months ago

#6

Nick Parker Consultant

288 158 0.5
I believe there will of course be a growth in value sales of console (not including handhelds) software between now and 2017 but not to the extent of the DFC report. We are in the midst of the trough in lifecycles this year and six weeks of next gen launches coming soon will not make a huge impact on software sales at this stage of the lifecycle. So, if we are at our weakest, the market can only improve with the next generation growth to 2017. The next four years console software sales will never achieve those of 2008 to 2011 but they will at least improve from this year going forward. Just for the packaged goods global software market value, a 14% improvement is feasible by 2017 and supported by the likes of IHS Screen Digest who are a good source for such data: http://www.screendigest.com/

Posted:11 months ago

#7

David Serrano Freelancer

300 272 0.9
The 360 and PS 3 installed based grew from approx. 140 M to 150 M since the last round of price drops. But 10 M more consoles hasn't translated into higher sales or growth in the core games market

So if 120 M of 150 M console owners are no longer actively buying games for the systems they already own... exactly where will growth come from in either market?

Posted:11 months ago

#8

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