The State of the Games Industry: 'Consoles Are In Trouble'
Feb 10, 2012 | By Vindicia
The Games Summit track of panels at CES contained some interesting topics and revealed some new insights.
The panel on the State of the Games Industry was moderated by Mike Vorhaus, the president of Magid Advisors, strategic consulting firm. Panelists included Sean Vanderdasson, Senior Vice President of Game Services at games network Wild Tangent; Sean Spector, Co-Founder and Senior VP of Business Development and Content at game rental specialist (and owners of Direct2Drive) GameFly; Gene Hoffman, CEO of Vindicia, a provider of billing solutions for digital merchants; Nanea Reeves, Chief Product Officer at cloud gaming provider Gaikai; and Chris Early, Vice President of Digital Publishing at Ubisoft. The discussion lead off with some statistics on the industry to provide some background to the opinions the panel would present.
The games market, including consoles, console software, handhelds, PC, mobile, online, and social totals up to $74 billion in revenue for 2011, up 10% from 2010. By 2015 it will be over $100 billion dollars in revenue worldwide (figures from the Gartner Group). Gaming hardware is still predicted to grow at a steady rate, but online gaming is growing rapidly, from $11.8 billion this year to $28 billion in 2015. Gaming companies raised $1.5 billion last year, up almost 50% from 2010, and that does not count the money raised by IPOs like Zynga and Nexon or exits like PopCap games being sold to EA…