Report: Video games industry sales hit $1.5b, down by 12.8 per cent

Second consecutive year decline in revenue does not reflect the rising popularity of digital game downloads, according to the Interactive Games & Entertainment Association.

The Australian video games industry’s retail revenue declined by 12.8 per cent in 2011 but it still brought in about $1.5 billion, according to an NPD Group report.

Figures released by the market research group include retail sales from console hardware, games software and gaming peripherals.

This is the second drop in retail revenue for the video games industry. In 2010, sales revenue dropped by 16 per cent to $1.7 billion from 2009.

But the Interactive Games & Entertainment Association (iGEA) was quick to note the numbers do not account for revenues generated by online retail, downloadable content, online games subscriptions, in-game micro-transactions and mobile games.

Analyst firm, Telsyte, and professional services firm, PriceWaterhouseCoopers, both predict the digital games download sector to grow considerably in the future.

“Overall, we’re seeing a lot of evidence point towards a continuing healthy interactive games industry,” iGEA CEO, Ron Curry, said in a statement. “The incredible success of games such as Call of Duty 3: Modern Warfare 3, which became the fastest entertainment property to hit the $1 billion milestone globally, eclipsing the previous record set in 2009 by the film, Avatar, is only one example of this.”

Meanwhile, Sony’s PlayStation 3 experienced a surge in sales in last year with a 25 per cent jump in unit sales. The console beat competitors including Microsoft’s Xbox 360 and Nintendo’s Wii to become the top selling console of 2011.

But console hardware sales still dropped by around 15 per cent in 2011 to $443 million.

The best-selling game of last year was Call of Duty: Modern Warfare 3 by Activision, which sold the most copies on the PS3 platform.

The NDP report also showed the 54 per cent of games sold in 2011 were rated G and PG. Shooter and action were the most popular genres, each nabbing 19 per cent of gaming revenue followed by family games with 16 per cent.

2014 ARN Women in ICT Awards - Nominate Now!: Nominations have opened for WIICTA 2014 and will stay open until October 22. But don't be late, be among the first in and NOMINATE NOW!!!

More about ActivisionMicrosoftNintendo AustraliaNPD GroupSonyTelsyteXbox

ARN Directory | Distributors relevant to this article

1 Comment

Quicksilver

1

"The incredible success of games such as Call of Duty 3: Modern Warfare 3" Yeah, in it's first month. It's had one of the fastest drops in price I've ever seen.

Comments are now closed

 

Latest News

01:38PM
Google Nexus 9 pre-sales start at $479
12:56PM
Xero: Larking about, Kiwi style...
11:39AM
World's most powerful life sciences supercomputing facility to stay in Victoria
11:18AM
Nextgen Networks appoints former AAPT exec as new MD
More News
21 Oct
NewLease & Red Hat Breakfast Briefing (Melbourne)
21 Oct
DCIM Solutions Architect
22 Oct
NewLease & Microsoft Technical Sessions
23 Oct
NewLease & Red Hat Breakfast Briefing (Sydney)
View all events