kamil on 28 January 2008
@SlorgNet:
But there's hope for 2010. Here's why: history shows that a game market takes off when per capita income hits $5,000 or so. (This is what happened in Russia.)
Does it take off when income hits $5000? It surly grows but more than when it hits $4000 or $6000? The problem is that there is little data considering video games industry from "poor" countries. You mentioned Russia, do you have any data from it? I would love to see it if you do.
China's urban regions are 45% of population and have three times the income of the rural regions. Calculate out the numbers using basic algebra, and it turns out China's urban per capita GDP is $3,690, while rural GDP is $1010.
Assuming two more years of 10% growth, and China hits the magic $5,000 market. It will become a huge game market, no question.
Assuming two more years of 10% growth, and China hits the magic $5,000 market. It will become a huge game market, no question.
I don't think this reasoning is valid. If even it is true that $5,000$ income means something you didn't use that logic for Russia. When Russia hit 5000$ there were also people that have more than 5k income (and probably they contributed most to console market grow). And when Russia hit 2k yearly income people living in Moscow probably were making 5k yearly or more but you didn't say that Russian market hit off when it hit 2k, right?
