GameON Finance 2.0: Key Gaming Industry Trends And Market Overview

Presentation: Key Gaming Industry Trends and Market Overview

Presenter: Wanda Meloni, President & Senior Technology Analyst, DFC Intelligence

Key points:

  • Gaming is a $47 billion global market.
    • Console gaming alone is estimated to be $27 billion in size.
    • PC online games is a $6.5 billion industry. Projected to be $13 billion by 2012.
    • Online MMOGs is a $3.5 billion industry.
    • Casual gaming is a $1.5 billion industry.
  • Nintendo doing better than expected while PS3 not expected to break-even. Sony can’t hold on to its 67% marketshare (with PS2) and will eventually come down to about 50% marketshare.
  • World of Warcraft is an incredibly popular and successful MMORPG. Earned $600 million in revenue in ’08, with 11 million users. Sells for $50 retail + $15/month.
  • BigFish, a casual gaming company, earned $100 million in ’08 revenue. Business model orginally was to offer free, ad-supported games but moving on to digital distribution / ‘try-before-you-buy’ and subscription.
  • Casual games
    • team size: 25
    • cost: $75k – $300k
    • time: 6 months
  • AAA games
    • team size: about 100
    • cost: $15 – $30 million
    • time: 2-3 yrs
  • MMOGs
    • team size: starts at 100 – 450
    • cost: $15 – $25 million + $500k annual cost for servicing users
    • time: 3-5 yrs
  • Regional perspective
    • North America – strong diversity; sports, action, first person games more popular
    • Europe – more cost conscious, similar to North American gaming market otherwise
    • Japan – console based
    • Korea/China – MMOGs are more popular.
  • Canada’s gaming development industry
    • Montreal – 80+ game companies including EA and Ubisoft affiliate studios
    • Vancouver – 100+ game companies, strong affiliate studios.