Is the game market generating $100B per year in revenues?

Recent estimates value the global games business somewhere in the range of $50 billion. But if you factor in the booming online gaming sector and look at the total market caps for all public companies, the global games industry is actually worth about double that, according to investment banker Paul Heydon of Avista Partners.

During a talk at Edinburgh Interactive, Heydon outlined the video game sector as he sees it. He noted that the total market cap of all public games companies globally had reached $105 billion and that online games (MMO, social/casual games, etc.) are now worth around 71% of the non-Nintendo PC/console sector.

Heydon breaks down the global games market as follows:

  • Nintendo – $34.96 billion
  • Other PC/console (without Nintendo) – $33.22 billion
  • Online – $23.46 billion
  • Mobile – $8.26 billion
  • Retail – $3.11 billion
  • Payment Services – $1.37 billion
  • Distribution/Accessories – $311 million
  • Outsourcing – $255 million

See Industry Gamers for more. Incidentally, $100 billion is how much the U.S. military wants to cut in spending over the next five years.

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About the Author,

Dean is lead writer for GamesBeat at VentureBeat. He covers video games, security, chips and a variety of other subjects. Dean previously worked at the San Jose Mercury News, the Wall Street Journal, the Red Herring, the Los Angeles Times, the Orange County Register and the Dallas Times Herald. He is the author of two books, Opening the Xbox and the Xbox 360 Uncloaked. Follow him on Twitter at @deantak, and follow VentureBeat on Twitter at @venturebeat.

  • http://www.socialjitney.com/ Iphone Application Developer

    I think yes because when people get bored the go for online gaming.

  • http://www.cygnismedia.com/mobile-phone-application/iphone-application.html iPhone Application Development

    i thought more than this definitely…

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