The PC is the largest single platform for games with annual worldwide revenue of about $11 billion.  This is more than any of the console and portable systems from Sony, Microsoft and Nintendo.


In emerging markets such as Asia and Eastern Europe the PC has become the de facto platform of choice for games as console systems have not had major penetration in most countries.


Even in North America and Western Europe the PC is the leading single platform for games with over $6 billion in combined revenue from those markets.


Broadband penetration has been a key driver of growth and revenue growth for PC games, and is directly tied to growth in broadband penetration.


The three biggest trends in 2008 were 1) the growth of online digital distribution via services like Valve’s Steam; 2) the growth of free games with a virtual item purchase model and 3) the growing presence of game cards at major retailers like 7-Eleven.


Top PC games regularly generate over $50 million at retail revenue but can generate substantially more in subscription and/or add-on revenue.


Massively Multiplayer Online Games (MMOGs) are the leading products for both revenue and profi ts.  Several Asian MMOGs are generating over $100 million  in annual  revenue after 5+ years on  the market.   World of Warcraft  is generating over $1 billion in annual revenue. The Lich King expansion to World of Warcraft outsold its predecessor. In 2008, two major new subscription MMOGs (Warhammer Online and Age of Conan) sold over 1 million units at retail.  Digital distribution, free-to-play models and retail game cards are well-established in Asia, but just starting to emerge in North America and Europe.


Leading emerging markets for PC games include Russia/Eastern Europe, India, Brazil and Southeast Asia.  These markets generally have very low (often less than 5%) broadband penetration, but are expected to grow substantially as the infrastructure improves.


Low-cost PCs often have trouble playing high-end games, but they are helping drive growth in the mass market and emerging markets that can not yet afford high-end systems.  These PCs are helping drive the casual game market.


The trend in Western markets is toward portability and connectivity, with laptops outselling desktops, In addition, the major growth segment in laptops is under-$500 netbooks that are better suited for online casual games.


Casual games have developed  into an entire sub-segment  led by  large  industry portals such as Electronic Arts’ Pogo, Yahoo, MSN, Big Fish, Real Networks and others.  These top portals can now generate well over $100 million

in annual revenue from casual PC games.

Gaming  software  (retail,  digital distribution,  online  subscription, advertising  and  other  business models)  generated  $10.7  Billion which  according  to most  industry studies  would  make  PC  game software  responsible  for  nearly one third of every dollar generated in  the  gaming  software  industry.  This  makes  the  personal  com-puter by far the No. 1  platform for gaming world wide.  The hardware revenues  for  PC  gaming  include the  PCs  purchased  by  gamers and  any  peripheral  component upgrades done  in  the  year 2007.  At $43 Billion this dwarfs the hard-ware revenues of competing gam-ing platforms by two-to-one.

PC 'rules supreme' in games world
By Maggie Shiels
Technology reporter, BBC News, San Francisco

GDC Game signs
PC's remain the favourite way to play games says report

The personal computer is king in the world of games, according to a new report by the PC Gaming Alliance.

On the opening day of the Game Developers Conference in San Francisco, the Alliance said the industry made about $11 billion world wide last year.

PCGA president Randy Stude said these figures underline the PC as the "No 1 platform for gaming world wide".

"Despite Xbox LIVE and PlayStation, the online platform that remains the most accessible and robust is the PC."

According to research company IDC, there are over 1 billion personal computers world wide. The PCGA maintains that 250 million are being used for gaming.

The report also revealed that three of the biggest trends for last year were the growth of digital distribution, the rise of free games with a micro transaction model, and the increased presence of game cards at major retailers such as 7-Eleven

"The biggest story in PC games is the expansion beyond retail," said Mr Stude.

"PC games have successfully pioneered online subscription and distribution models that have resulted in a global boom that shows no signs of slowing."

In 2008, Americans spent more than $21 billion on video game hardware, software and accessories, up from $18 billion in 2007, according to market researcher NPD Group. And sales continued to rise in January and February of this year.

Thriving and hiring

Such figures come as a welcome boost for GDC as the recession casts a shadow over the event, the biggest of its kind in the world.

Even though organisers are expecting attendance to be down slightly from last year's 18,000 people, GDC event director Meggan Scavio told BBC News the economic downturn is not deterring people from coming.
GDC signs
Gaming is showing strong sales despite an economy heading south

"It's true that maybe some of the bigger players, publishers and studios can't send as many people as in the past but at the same time I have found that people are finding their own way to come to GDC.

"They are sharing hotel rooms, they are car pooling, they are probably sharing passes and they come for the entire week."

Ms Scavio also pointed out that even though companies like Electronic Arts, THQ, Lucas Arts and Sega have had to make jobs cuts over the last few months, it is not all doom and gloom within the industry.

"We have a career pavilion here with 50 booths. There are studios that are hiring, companies are hiring. People like Nintendo and Blizzard are still thriving and people are forming their own independent studios and are looking to take people on."

That is welcome news for Jeff Ball who is a musician and attending GDC for the first time with the aim of making contacts and getting work.

"I've just graduated and I'm trying to network and meet as many people as I can because that's how you get into the industry and coming here is thee place to do that."

Mr Ball is not alone in looking for business opportunities.

Pierre Langer of Dynamedion, Europe's biggest audio studio for video games, has attended GDC for the last five years. He told BBC News that this year he has changed his strategy for drumming up business.

"Over the last few years I just hung out and met people in a casual way. This year it's different and I am doing a lot of meetings. I have 40 meetings in the next 4 days," said Mr Langer.

"Year of opportunity"

While the conference does not really get underway until Wednesday with the opening of the Expo, many attending the first day viewed the economic health of the industry in a positive light.

"I think people are optimistic," said Marti Miernik of PR Sirens who is here promoting a game called Space Trader Wars for HermitWorks Entertainment.
GDC people in lobby
GDC attendance is expected to be down this year

"I think some of the shaking out of the economy has already happened and it's time to move forward. In the last week the market turned from under 6,000 to 7,500 so things are shifting and people are looking much more positively at what's going on," said Ms Miernik who has attended GDC for the last five years running.

Meanwhile first timer Andy Park of AOS Inc said he believes the recession is actually good news for the gaming industry.

"I don't know that the climate is affecting games too much. If anything I would think the games industry maybe ought to see a little kick because of this.

"People aren't buying stuff so much but the idea of going to the movies or buying a new game which you can use again and again and again probably still holds water," Mr Park told the BBC.

Ms Scavio said that while the industry is far from recession proof, this is undoubtedly a time for people to be creative.

"I like to call this the year of opportunity but the other message this year at GDC is that this community is resilient, creative and young and will definitely find its way out of this crisis.

"Throughout the week you will see deals going on in every corner of the building and pitches being made at every turn," asserted Ms Scavio.