Report Says Video Game Spending to Surpass Music Spending
A study by consulting firm PricewaterhouseCoopers shows that global spending on video games will surpass music spending this year. Its annual "Global Entertainment and Media Outlook" report outlines expected growth in various industries including entertainment, film, music, and video games and predicts a huge growth for the gaming sector:
The rising penetration of broadband combined with consoles with online capabilities, wireless phones capable of downloading games, and technologically advanced consoles are credited with driving the video game industry's strong growth. PwC says that the gaming industry will see a compound annual growth rate of 9.1 percent between 2007 and 2011, resulting in a $48.9 billion global video game market in 2011, up from $37.5 billion this year.
In other words, while the gaming business is booming, the music industry will continue it's downward spiral. And with video games doing so well, PricewaterhouseCoopers says that in-game advertising has the potential to grow exponentially: "While in-game advertising generated $80 million in 2006, the firm estimates that it could grow as high as $950 million in 2011." Yikes. Keep your fingers crossed and hope that in 2011, every game won't look like an EA sports title...
Video game spending to surpass music spending this year [ars technica]
Lazy Panda
Posted to Hot Stuff, Video Games on 24 June 2007
Other stuff like this: ea sports, economics, in-game advertising, music industry, pricewaterhouse coopers, video games industry
