PC Game Industry Shows Big Growth in 2010

[Mungri]

http://www.escapistmagazine.com/news...Growth-in-2010

2010 was a big year for the PC videogame industry as the PC Gaming Alliance reports revenue growth of 20 percent over 2009 to an overall market value of more than $16 billion.

I'm not even going to make the obligatory "PC gaming is dead" crack because at this point, even the irony is worn out. Instead we're just going to get straight to the PC Gaming Alliance's 2010 Horizons report, compiled by DFC Intelligence, which says that 2010 was a banner year for the PC game industry. The global PC games market hit a value of $16.2 billion in 2010, a year-over-year increase from 2009 of 20 percent. China was the largest and fastest-growing market for PC games, putting up $4.8 billion in revenues for the year, but "mature markets" in the U.S., U.K., Japan, Korea and Germany all showed significant growth as well, combining for $7.3 billion in revenues, a 19 percent increase.

Digital distribution is a major driver of industry growth, as sites like Steam and Direct2Drive continue to turn traditional retailers into merely an "optional source for distribution." Free-to-play and online gaming are also cited as major contributors to the growing strength of the PC as a gaming platform.

"The spotlight has definitely shifted back to the PC game market," said PC Gaming Alliance President Matt Ployhar. "Large game publishers are looking at digital revenue on the PC game platform as one of their key areas of growth and it is clear that the performance of the PC game market in 2010 is resulting in substantial investment money flowing into the PC game business."

It's a bold statement but not entirely unjustified. PC gaming may still be the industry's red-headed stepchild but it's clear by now that it's not a black hole; there's a lot of money to be made for developers and publishers who are willing to embrace the platform and take advantage of its strengths. The report predicted a compound annual growth rate for the industry of nine percent, hitting $23 billion by 2014, driven mainly by increasing ease of access to digital distribution channels. Not bad for a dying platform, eh?

Oh noes, PC gaming is dy ..... I mean, Living? Wait, that cant be right can it?

[krogen]

I think it's mostly due to Starcraft 2 and growth of the indie industry (Minecraft and others).

[Mungri]

I think it's mostly due to Starcraft 2 and growth of the indie industry (Minecraft and others).

In the western market yes. In the Asian market its mostly due to MMOs.

Growth in the PC gaming industry is still a good thing, regardless of which type of games are doing well.

[lowfat]

I know a ton of people who started actually buying games this past year due entirely to Steam. So it really doesn't surprise me all that much.

[El Mano]

I'll believe this when I see "Press Enter" in a console game rather than "Press Start" in a PC game.

[Mungri]

I'll believe this when I see "Press Enter" in a console game rather than "Press Start" in a PC game.

I think that this is mostly due to EA demanding that their developers prioritize their games on consoles though.

Both Crysis 2 and Dragon Age 2 have been hit with the 'consolisation' bug, and it comes as no surprise to me that both those games are being published by EA.

The traditional retail box released games are coming to an end now, they have been for a long time. But the MMO and digital disribution, particularly through Steam are both becoming bigger and bigger.

I know a ton of people who started actually buying games this past year due entirely to Steam. So it really doesn't surprise me all that much.

Yea, I'm one of them. I never wanted to use steam, and only bought a few low priced games that were on offer on there originally. I initially hated that Civ V was going to be a steam only game but bought it because I really wanted it.

Now I have a total of 78 games on steam, mostly just ones bought through offers over the Christmas period. Two indie games have completely made me change my mind about Steam - VVVVVV and Magicka, I love them both and would have never heard of or bought them if it wasnt for steam. I also just bought an indie platformer called Braid because it was just £2.10 and has really good ratings and reviews.

I now see that Steam is the best thing that has ever happened for indie games, though I still prefer to have boxed copies and my game on a disk for major releases.

[Hornet331]

Steam exclusive is not enforced by valve, but rather by the devs themself:

8. Do you require exclusivity for titles you sell on Steam?
We think you should get your game in front of as many people as you can, therefore we do not require exclusivity on titles.

Also the whole "Pc gaming is dying" trend was only for retail sales, market researchers ignored digital distributen for a long time. Digital distribution already outnumbers retails distribion as of 2009.

And you know whats funny... despited retail box sales having the lower number they still have the higher revenue, but devs see less money then when they sell there games on platforms like steam... wonder where the money goes.

Imho steam was the best thing that could happen for small and midsized developers, they get more money as when the sell it on the retail channle and reach a much wider audience.

Recettear is the best example, they only speculated for 10k untis to be sold, but in a few weeks they sold over 100k.

So yes Pc-Retailing is dying, and im not exactly sad about that, so less money for the old and fat corporated hogs like ea/ubisoft etc.

[Teemax]

With Valve not releasing any Steam sales figures, how did they come up with the $16 billion number?

Personally, a huge part of my 2010 PC game purchases was on Steam. 2011 doesn't look to be any different so far; only Steam purchases so far.


That said, my list of unplayed games on Steam is getting pretty big too...

[InCredible]

i dont see why every game isn't downloadable already..it saves so much money on producing boxes/dvds/cases/instructions/shipping..all you need is a file and your done..seems like it would only profit more and with internet speeds how they are now..id much rather download vs owning the copy...i dont care for having a 100 dvd's/games laying around just waiting to get scratched/damaged....maybe my own fault but im not very organized and when i try to be i can never find anything so therefore im pretty cluttered usually and this can easily end up with a broken/scratched unplayable game.

[Teemax]

i dont see why every game isn't downloadable already..it saves so much money on producing boxes/dvds/cases/instructions/shipping..all you need is a file and your done..seems like it would only profit more and with internet speeds how they are now..id much rather download vs owning the copy...i dont care for having a 100 dvd's/games laying around just waiting to get scratched/damaged....maybe my own fault but im not very organized and when i try to be i can never find anything so therefore im pretty cluttered usually and this can easily end up with a broken/scratched unplayable game.

The biggest draw for a game developer to digital distribution (like Steam, Direct2Drive) is the $$$.

With a traditional distribution system, they need to share the revenue with a publisher (if they can find one), then spend money on printing boxes, manuals, DVDs. Then the revenue gets another big slice from retailers.
Don't forget the money spend on a DRM system as well.

With digital distribution like Steam, they get 70% of the sales price for $0 distribution cost. That's why Steam is the platform of choice for indie dev who can't afford to go through the traditional channel.
On top of that, Steam built-in DRM works, and is favorably accepted by its users.


That's also why some people choose to distribute exclusively through Steam; ignoring the retail channel entirely. Valve is not making deals with anyone, they just present an irrisistable honey pot.

[RPGWiZaRD]

I'm very curious to see year 2011 sales with such a strong lineup. It can only improve IMO, especially as STEAM continues to get more and more accepted and liked.

[biohead]

I think it also has to do with most people owning more powerful computers these days, since a decent rig is way more affordable than it used to be.

That way everyone knows they can enjoy the latest releases without the burden of checking up on recommended specs every time.

[Manicdan]

does that revenue count monthly subscriptions for MMOs?

[Kallenator]

It should. And if that is the case MMO's has brought in around 3-4 billions of that cash, more than half of it from a certain Blizzard game ^^

[Hell Hound]

I'll take retail over online any day,because I want the art that comes w/ my box and manual.

[[XC] hipno650]

Im betting most of this came form SC2.... that was a huge bonus for the PC gaming community. the last year I had a bunch of people who were into consoles ask for a gaming PC just to play SC2

[Vardant]

Not to mention, that you actually own the game and not only lease it.

[Hornet331]

Btw. just to add something to my previouse post.

Even though steam lets distribute indies on there platform, there policies are often quite puzziling what they allow. I have a friend who also wanted to distribute his game over steam, but got rejected... and when you see his game and what stuff is sold on steam, you just think, wtf is steam thinking... (just if your interested, compare that with something like droplitz or defcon, sure they are other games, but all three are good in there own way).

So I strongly advice people not to just sitting on one distribution platform. If your a fan of indi games you sould look at desura, since everyone can submit there game there without restrictions (like on steam).

[Kallenator]

Hornet, I agree, that is pretty lame of steam.

[geo]

if PC dies then closed credit card sipping ecosystems like Apple and now google's will prevail. This is good news in more than just the Gaming bit

[Pokerface]

Almost all game genres are better on the pc. Rts, fps, mmos, simulation, etc.

[saaya]

That said, my list of unplayed games on Steam is getting pretty big too...

Hehehe

[Final8ty]

Not to mention, that you actually own the game and not only lease it.

Seeing as you don't have to pay continued leasing charges its irrelevant as its nothing more than a play on words as you don't own the software on DVD either.

Break or lose a game on DVD & you pay to replace it even though you have paid for the right to use the software on it & not for the media it came on.

[Hornet331]

Seeing as you don't have to pay continued leasing charges its irrelevant as its nothing more than a play on words as you don't own the software on DVD either.

Break or lose a game on DVD & you pay to replace it even though you have paid for the right to use the software on it & not for the media it came on.

Indeed, with the recent DRM its worse then steam... on steam at least I can install them as often is a want... forget one time to uninstall and just format the pc on a new DRM game, to bad you lost one of your copies...

[Final8ty]

Indeed, with the recent DRM its worse then steam... on steam at least I can install them as often is a want... forget one time to uninstall and just format the pc on a new DRM game, to bad you lost one of your copies...

Yes & try reinstalling & patching up to date 180 DVD games.