Business | Technology
EMEA video game market will reach $15.4b in three years
The overall video game market in Europe, Middle East and Africa (EMEA) is expected to reach $15.4 billion (Dh56.52 billion) in 2011, growing at a compound annual rate of 10.2 per cent from $11.13 billion (Dh40.85 billion) in 2007, the top executive of Turtle Entertainment said.
- By Naushad K, Cherrayil, Senior Sub-Editor
- Published: 00:11 June 4, 2008
Dubai: The overall video game market in Europe, Middle East and Africa (EMEA) is expected to reach $15.4 billion (Dh56.52 billion) in 2011, growing at a compound annual rate of 10.2 per cent from $11.13 billion (Dh40.85 billion) in 2007, the top executive of Turtle Entertainment said.
"Analysing the growth of gaming industry in EMEA one can say that games are the upcoming mass media. Regarding the extraordinary economic growth in Dubai, the percentage of growth of the personal computer (PC) gaming industry will be higher than that in Europe," said Jens Hilgers, chief executive of Turtle Entertainment.
He said console/handheld games will continue to represent the largest segment of the market, growing by 6.3 per cent compounded annually from $6.12 billion (Dh22.46 billion) in 2007 to $7.3 billion (Dh26.79 billion) in 2011.
Quoting a PricewaterhouseCoopers Global Entertainment and Media Outlook (PwC) report, he said PC game sales will be flat, at around $1.4 billion (Dh5.14 billion) through the forecast period.
"Online games will exhibit the highest rate of growth, increasing by 24.6 per cent on a compound annual rate from $1.57 billion (Dh5.76 billion) in 2007 to $3.6 billion (Dh13.21 billion) in 2011. Wireless games will reach $3.1 billion by 2011, up from $1.91 billion (Dh7 billion) in 2007, a 17 per cent compound annual increase," he said.
Nevertheless the consoles market has more potential to grow and to reach the casual gamer PC will maintain its importance due to the immense growth in online games.
"The introduction of the new generation of video game consoles and the associated increase in video game software purchases and the new internet-enabled consoles and growing broadband penetration will spur growth in the online game market while next-generation wireless devices will drive the demand for wireless games," he said.
The best selling game of 2007 was HALO 3 from Microsoft and "The Orange Box: Half Live 2".
He said Rockstar's latest epic crime, Grand Theft Auto IV (GTA IV), has became the fastest-selling game of all time, selling six million copies worldwide, ringing up $500 million in sales during its first week on the market. It is the most successful entertainment launch in history.
"With the stellar sales of game stations like the Playstation 3, Xbox 360 and Nintendo Wii added into the equation, gaming technology will clearly emerge an entertainment industry of equivalent value to film and television - and one which continues to show significant growth," he said.
Gaming
Mega event at Gitex
Dubai World Trade Centre (DWTC) is teaming up with Europe's leading computer gaming league, Electronic Sports League (ESL), to organise the largest game tournament in the Middle East as part of Gitex Digital Game World.
Taking place simultaneously at Gitex, the event will cover all aspects of gaming and will feature one of the most advanced professional platforms and advanced interactive technology for the fast-growing video game market.
"The business potential of electronic gaming is enormous and the Middle East market is proving incredibly receptive to new games and online tournaments," Jens Hilgers, CEO, Turtle Entertainment, operator of the ESL, said.
This year's Gitex is scheduled from October 19-23.
More from Technology
More from Business
Business Editor's choice
-
‘Wrong Way' Krugman
The source of our economic malfunction lies with government-mandated bank regulations
-
Greek exit could make Eurozone stronger
Departure will show limits of bailouts and allow remaining members to act much more like a unit
-
UAE upholds values of free trade
Recently released statistics confirm an established fact, namely that of the UAE embracing the free trade principle in general and imports in particular
