The console gaming market was worth $42.7 billion for the year to the end of June 2012, with software accounting for $26.4 billion - 61.8% of the total. By 2018 the market has been predicted to hit a market value of $38.4 billion.
A video game console is an interactive entertainment computer or customised computer system that produces a video display signal which can be used with a display device (a television,monitor, etc.) to display a video game. The term "video game console" is used to distinguish a machine designed for people to buy and use primarily for playing video games on a TV.
Major factors driving growth in the console gaming market include the increasing penchant for new gaming software, increasing participation of customers of all ages in gaming, increasing functionality of latest consoles, and the potential launch of new consoles in the near future.
The rolling out of new game titles, arrival of motion-sensor games, and rising adoption in untapped emerging markets are other factors fuelling market growth.
The US represents the largest regional market within the console gaming market. However, Asia-Pacific is expected to emerge as the fastest growing region, witnessing a compounded annual growth rate (CAGR) of 6.3% through 2018.
However, overall, game console sales are in a state of decline. The three major manufacturers (Microsoft, Nintendo and Sony) have sold 5.95 million consoles this year, which is down 18.7% from a comparable 7.32 million units in August 2010.
The main reasons for this include the lack of big title releases, typical slowdown towards the end of a video game console cycle, and the fact that the fastest-growing segment of the video game market, digital, is not captured by the data.
Xbox 360 sales totalled 1.4 million units in the third quarter ended March 31 2012, representing a 48% decrease year-on-year. The business unit posted a loss of $229 million, versus a profit of $210 million for the third quarter last year.
For more information on the console gaming market, see the latest research: Console Gaming Market
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