U.S. video game industry growth seen slowing

Las Vegas, Jan 5 (Reuters) - U.S. video game industry sales growth is expected to slow in 2008 as accelerated demand for software is tempered by a decline in hardware revenue, the Consumer Electronics Association said on Saturday.

Overall U.S. industry sales are seen rising to $17.9 billion in 2008, up 13 percent from an estimated $15.8 billion in 2007, the CEA said. That compares with a 22 percent increase from 2006 to 2007.

The expected decline in growth comes as the industry moves beyond the initial phase of the introduction of new gaming consoles made by rivals Microsoft, Sony and Nintendo.

Video game industry hardware sales jumped 50 percent to $6.6 billion in 2007, but are anticipated to shrink to $6.4 billion in 2008.

Now that all of the major consoles are established, hardware sales are expected to moderate, while demand for related software is expected to jump, as game owners beef up their libraries of new titles.

Software sales are expected to rise to $11.5 billion in 2008, up from $9.1 billion in 2007. That was a 7.6 percent increase from 2006, the CEA said.

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LightningPS34032d ago

But I didn't see 2007 as hot a year for gaming as everyone says. Unless you're a huge fan of Halo 3 or first person shooters.

RIPHDDVD4032d ago

for PS3. not for 360. 360 sucks now

power of Green 4032d ago

Somebody needs to tell your mothers to stop breeding.

mullet4032d ago

..pull out Bill Gate's penis out of your mouth.

turbogeek4032d ago

somebody disagreed with you on that one. apparently they enjoy having his penis in their mouth LOL! n4g has so many homo 360 owners.

socomnick4032d ago

Where is the moderation jesus ban these facking morons. Everyday this site is going farther down the drain right onto a big pile of sh |t.

doshey4032d ago

yep because of people like you

bluhefner4032d ago

I agree Jacob. I actually think 2007 was kinda overrated and 2008 looks to be the better year because the most awaited 3rd party games are gonna be out and the Sony exclusives look awesome and can't forget about SSBB.

RadientFlux4032d ago

It's going to be hard for 2008 to match the quality of games released in 2007. Sony only fans will think otherwise but then 2007 was pretty slow year for them (1st half).

+ Show (5) more repliesLast reply 4032d ago
smashballs4032d ago

It's called saturation. There's too much crap floating around there for everyone to digest. I know I'm still trying to catch up on games released two or more years ago. But do they let the market thin out and allow everyone to catch up? No, they just pile it on and put the systems in combat with each other so it's like the most expensive game of Pokemon where everyone feels like they got to catch them all -- well, most people outgrow Pokemon eventually so unless everyone continues to pour out the contents of their wallets and heads in pursuit of playing the most games, the game industry will probably see constant decline until the next generation release war where it will spike one last time before Nintendo has to provide life support for the whole scene.

chrno64032d ago

The next big gaming stadium are China and India, and we all know they (will) heart ps3 lol.

ktchong4032d ago (Edited 4032d ago )

What makes you think CHINESE will "heart" a JAPANESE product?

Even the PS2 did not do well in China. In China, even the Wii (a Japanese product) is being outsold by the 360 (an American product). The Chinese people have an inherent hostility towards Japanese companies like Sony, and Chinese only buy Japanese products when there are no alternatives.

Microsoft could have taken advantage of the cultural bias in China to cement the market for their Xbox 360, but Microsoft is too dumb (or ignorant) to see the opportunity.

mullet4032d ago

Chinese and Japanese are the same. Didn't you know?

rofldings4032d ago (Edited 4032d ago )

They won't buy an unreliable American product either.

They'll obviously just create their own gaming machine or a knockoff.

Vii, Popstation, Ybox?

In any case, console gaming in Asia hasn't really been huge outside of Japan, a huge majority of them are into PC games.

chrno64032d ago

I am chinese Canadian myself, and I love japanese products. It's the older generation that has an inherent hostility towards Japanese, not the new generation really. And the chinese love rpg, so jrpg will certainly prevail.

+ Show (1) more replyLast reply 4032d ago
wiizy4032d ago

it may be slowing for everyone else. but nintendo is not slowing and thats what matters.. cause they actually care about entertaining everyone..from kids to grandmas

Bombomb4032d ago (Edited 4032d ago )

looking at Ms software sales and Nintendo's hardware sales, seems to me only Sony slowed down in 07, with little spikes here and there.

Hey at least the Wii caught up in hardware but totally took a sh$t on sony.

Anyhow next year will be hotter..

Not much have changed since all of this HD news, we all know the ps3 is a damn good video player but what else do you get for 3RD PLACE?

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