Value of retail sales of games hardware and software, 2000–2008
Next update March 2010
The retail sales value of gaming approached the $2 billion mark in 2008. Both hardware and software rose, up 45 per cent and 50 per cent respectively. The strongest growth was recorded by console software, which increased by 59 per cent from $750.4 million to $1,125.9 million. ‘Edutainment’ software was the only category to fall in value, and is also the only category to have lower retail sales in 2008 than in 2000. The average annual growth rate of console hardware and software value since 2000 has been around 80 per cent.
The popularity of console gaming can be seen again in 2008, with the retail sales value of console hardware increasing four-fold in the last four years. This corresponds with the Australian launch of three new ‘next generation’ consoles in the last few years: Microsoft’s Xbox 360 and Nintendo Wii in 2006 and PlayStation 3 in early 2007.
|
Hardware |
Software |
| Retail sales ($m) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | |
| Hardware | |||||||||
| Consoles | 107.0 | 183.6 | 291.8 | 245.6 | 189.3 | 215.5 | 269.9 | 499.7 | 719.1 |
| Peripherals | 32.0 | 44.1 | 72.1 | 64.2 | 62.5 | 56.4 | 58.6 | 78.2 | 118.8 |
| Total hardware | 138.9 | 227.7 | 363.9 | 309.8 | 251.8 | 271.9 | 328.5 | 577.9 | 837.9 |
| Software | |||||||||
| Console games | 174.8 | 196.5 | 270.3 | 343.8 | 428.7 | 468.1 | 476.9 | 625.5 | 996.6 |
| Computer games | 66.7 | 84.6 | 91.1 | 88.9 | 100.1 | 114.1 | 114.3 | 121.7 | 127.0 |
| Edutainment | 12.6 | 14.3 | 11.1 | 8.6 | 7.1 | 7.2 | 5.1 | 3.2 | 2.2 |
| Total software | 254.1 | 295.4 | 372.4 | 441.2 | 536.0 | 589.4 | 596.3 | 750.4 | 1,125.9 |
| Total value | 393.0 | 523.1 | 736.3 | 751.0 | 787.8 | 861.3 | 924.8 | 1,328.3 | 1,963.7 |
Source: GfK Marketing Services.
Notes: Figures may not total exactly due to rounding.
Retail market share of video games hardware by type, 1998–2008
Next update March 2010
Data on portable or handheld devices became available as a separate category in 2001, including the original 8-bit as well as the newer 32-bit portables. Nintendo’s Game Boy Advance, the first of the 32-bit handheld consoles, was launched in Australia in June 2001. Nintendo and Sony both launched new handheld systems in 2005, the DS and PSP respectively. In particular, the PSP has broader camera and music features.
At the other end of the hardware capacity spectrum are the stationary consoles using advanced computer technology to enhance the experience of gaming. Sony launched their Playstation 2 in Australia in 2000; this was followed by Microsoft’s Xbox, and Nintendo’s GameCube in 2002. In 2006, Microsoft and Nintendo both launched new consoles, with Microsoft’s Xbox 360 released at the start of the year and Nintendo’s Wii shortly before Christmas. Sony’s PlayStation 3 was released in March 2007.
The sale of ‘next generation’ consoles (PlayStation 3, Xbox 360 and Wii) rose in 2008, and now account for over half of all units sold and more than two-thirds of retail value. Handheld devices or portable consoles comprised 41 per cent of units sold, falling slightly from 44 per cent in 2007. Despite this, their retail value remained steady. In contrast, the number and value of 128-bit hardware continued their decline, halving in 2008.
| Market share (units sold) | |||||||
|---|---|---|---|---|---|---|---|
| 8-bit | 16-bit | 32-bit | 64-bit | 128-bit | Next gen1 | Portable consoles2 | |
| 1998 | 23% | 2% | 49% | 25% | n.a. | n.a. | n.a.3 |
| 1999 | 32% | 1% | 48% | 16% | 3% | n.a. | n.a.3 |
| 2000 | 45% | <1% | 38% | 10% | 6% | n.a. | n.a.3 |
| 2001 | <1% | <1% | 29% | 4% | 29% | n.a. | 38% |
| 2002 | – | <1% | 9% | <1% | 71% | n.a. | 19% |
| 2003 | 2% | – | 3% | – | 72% | n.a. | 23% |
| 2004 | – | – | 1% | – | 73% | n.a. | 26% |
| 2005 | – | – | – | – | 51% | n.a. | 49% |
| 2006 | – | – | – | – | 32% | 20% | 48% |
| 2007 | – | – | – | – | 19% | 37% | 44% |
| 2008 | – | – | – | – | 8% | 51% | 41% |
| Market share (value of sales) | |||||||
|---|---|---|---|---|---|---|---|
| 8-bit | 16-bit | 32-bit | 64-bit | 128-bit | Next gen1 | Portable consoles2 | |
| 1998 | 14% | <1% | 57% | 29% | n.a. | n.a. | n.a.3 |
| 1999 | 25% | <1% | 57% | 17% | 1% | n.a. | n.a.3 |
| 2000 | 28% | <1% | 38% | 9% | 25% | n.a. | n.a.3 |
| 2001 | <1% | <1% | 18% | 2% | 61% | n.a. | 20% |
| 2002 | – | <1% | 4% | <1% | 87% | n.a. | 9% |
| 2003 | – | – | 1% | – | 85% | n.a. | 14% |
| 2004 | – | – | – | – | 83% | n.a. | 17% |
| 2005 | – | – | – | – | 53% | n.a. | 47% |
| 2006 | – | – | – | – | 23% | 40% | 37% |
| 2007 | – | – | – | – | 10% | 62% | 27% |
| 2008 | – | – | – | – | 4% | 70% | 26% |
Source: GfK Marketing Services.
Notes:
Figures may not total exactly due to rounding.
1. Due to changing terminology in the gaming industry, ‘bit’ is no longer used when talking about the new consoles. ‘Next gen’ includes Nintendo Wii, Xbox 360 and, from 2007, Playstation 3.
2. Separate category since 2001 only; includes both 8-bit and 32-bit devices.
3. Included in 8-bit category.
Top 10 consoles ranked by total units sold
Nintendo’s Wii console (with bonus Wii Sports game) remained the top-selling console in 2008 after displacing Sony for the first time in nine years in 2007. Despite the popularity of Wii and PlayStation 3, the other ‘next generation’ console, Microsoft’s Xbox 360, was not in the top 10, marking the first time since 2001 that Microsoft did not appear on the annual list.
2008
| Rank | Model | Brand |
|---|---|---|
| 1 | Nintendo Wii Console & Wii Sports | Nintendo |
| 2 | Nintendo DS Lite Pink | Nintendo |
| 3 | PlayStation 2 Slim Console | Sony |
| 4 | Nintendo DS Lite Black | Nintendo |
| 5 | Nintendo DS Lite Ice Blue | Nintendo |
| 6 | Nintendo DS Lite Polar White | Nintendo |
| 7 | PlayStation 3 80GB Console | Sony |
| 8 | PlayStation 3 40GB Console | Sony |
| 9 | Nintendo DS Lite Blue/Black | Nintendo |
| 10 | Nintendo DS Lite Red/Black | Nintendo |
Source: GfK Marketing Services.
Top 20 console games ranked by units sold
2008
| Rank | Game | Format |
|---|---|---|
| 1 | Wii Fit | Nintendo Wii |
| 2 | Wii Play (with remote) | Nintendo Wii |
| 3 | Mario Kart (with wheel) | Nintendo Wii |
| 4 | Mario & Sonic at the Olympics | Nintendo Wii |
| 5 | Grand Theft Auto: IV | Playstation 3 |
| 6 | Grand Theft Auto: IV | Xbox 360 |
| 7 | Dr Kawashima’s Brain Training | Nintendo DS |
| 8 | Mario & Sonic at the Olympics | Nintendo DS |
| 9 | Super Smash Bros Brawl | Nintendo Wii |
| 10 | Big Beach Sports | Nintendo Wii |
| 11 | Sight Training | Nintendo DS |
| 12 | Carnival Games | Nintendo Wii |
| 13 | More Brain Training From Dr Kawashima | Nintendo DS |
| 14 | Nintendogs: Lab & Friends | Nintendo DS |
| 15 | Nintendogs: Dalmation & Friends | Nintendo DS |
| 16 | Nintendogs: Dachschund & Friends | Nintendo DS |
| 17 | Mario Kart | Nintendo DS |
| 18 | Singstar: Abba (software only) | Playstation 2 |
| 19 | Grand Theft Auto: San Andreas Platinum | Playstation 2 |
| 20 | Guitar Hero 3 Bundle | Playstation 2 |
Source: GfK Marketing Services.
