UPDATED 15:22 EDT / APRIL 01 2013

NEWS

Gaming Revenue Up in 2012, GameStop Suffered Losses

2012 was a great year for gaming industry, and a report commissioned by PC Gaming Alliance indicates the same. According to the report, PC software sales hit a record $20 billion worldwide in 2012, which represents 8 percent annual growth since the first PC Gaming Alliance report came out in 2008. The report predicts global PC software industry to grow to $25.7 billion in sales by 2016.

Chinese seem to love gaming a lot, and contribute $6.8 billion to the total global revenue. In addition, out of 1 billion PC gamers worldwide, one quarter can be identified as “core” players interested in traditional genres like strategy, action and role-playing games.

“DFC was surprised the industry still showed growth in 2012 with the decline of large subscription MMOs, heavy attention being paid to the impact of mobile games, and the struggle of many social network games. However, 2012 saw significantly increased distribution of successful titles that positively impacted the market, including Diablo III, Guild Wars 2, Minecraft and the Mists of Pandaria expansion to World of Warcraft,” said David Cole, an analyst for DFC Intelligence, which compiles the report in conjunction with JPR Research.

Some other findings of the report are:

• Mature game markets in Korea, Japan, U.S., U.K. and Germany all showed growth in 2012. Together these markets also increased revenue by percent in 2012, to $8.4 billion.

• The growth of mobile is helping the PC game business. The combination of mobile and PC as platforms is helping drive the growth of small self-funded teams that can develop more targeted products on a modest budget.

• The PC game business will continue to grow at a pace of 6 percent CAGR to $25.7 billion by 2016. This growth is driven by growing access to broadband connections and the increasing ease of digital distribution delivery solutions and payment methods on a global basis.

• Guild Wars 2, Mists of Pandaria, Diablo III, and Minecraft are positive influences on a market, but the market also experience “the decline of large subscription MMOs”.

Earlier this month, a survey carried out by NPD revealed that the gamers still prefer purchasing used games over full digital downloads, and second-hand game purchases still dominate the reign over downloading full game titles. According to the NDP survey, 78 percent of core gamers frequently purchase used games as compared to 70 percent who buy full digital games regularly.

Though the gaming industry surged as a whole, GameStop somehow suffered throughout the year 2012. GameStop made a loss of $269.7 million in fiscal year 2012 as its progress in digital markets failed to offset the attendant costs and the decline of physical retail.

“While 2012 was a challenging year for console gaming, we focused on factors within our control,” said CEO Paul Raines in a statement. “We expanded our market leadership position, maintained our financial strength and controlled our spending. Perhaps most importantly, we invested in our mobile and digital businesses to position the company for future success.”

Of course, these figures have not stopped GameStop from trying, as it is trying best to have strong digital and mobile growth. Signs of recovery were evident in GameStop’s Q4 performance, which saw the company take $3.56 billion in revenue.


A message from John Furrier, co-founder of SiliconANGLE:

Your vote of support is important to us and it helps us keep the content FREE.

One click below supports our mission to provide free, deep, and relevant content.  

Join our community on YouTube

Join the community that includes more than 15,000 #CubeAlumni experts, including Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many more luminaries and experts.

“TheCUBE is an important partner to the industry. You guys really are a part of our events and we really appreciate you coming and I know people appreciate the content you create as well” – Andy Jassy

THANK YOU