With performance curves that have historically defied economic downturns, the videogame console sector of the games industry is somewhat more resistant to recession than are other consumer entertainment markets. Revenue and shipment growth in the sector will continue upward, approaching the diverse relative peaks of the three competitive consoles, and will begin to plateau postpeak. This console cycle, however, encompasses unprecedented emerging dynamics that require fresh market perspective, specifically the growing mainstream acceptance of gaming as a valuable leisure activity, and significant growth of usage and revenue from ancillary content and services enabled by the connected console. Keeping these industryspecific dynamics in mind and factoring in the unprecedented global economic recession affecting all consumer-focused businesses, IDC finds: * Worldwide revenue representing retail value of shipments of videogame consoles, dedicated handheld gaming devices, and packaged software for consoles and handhelds reached a record high of $71.7 billion in 2008, up 15% from 2007' s record high of $62.4 billion. IDC anticipates continued growth of 14.1% in 2009 for another record of $81.9 billion.
* The retail value of global console and handheld hardware shipments peaked in 2008 at $25 billion, and IDC expects a decrease of 11.6% to $22.2 billion in 2009. The decrease in hardware revenue is partially due to declining average selling prices, which are necessary for vendors to compete for market share by facilitating multiple console ownership for the partially saturated gaming enthusiast market, and by increasing the installed base of the expanding mainstream market.
* With the installed base of each console and handheld increasing, IDC projects a sustained trend of double-digit year-over-year growth in retail value of software shipments during the forecast period. Software shipment value reached $46.6 billion in 2008, and IDC expects over 28% growth to result in shipments worth $59.7 billion in 2009.
* Accounting for vendors to maintain conservative production and to stretch hardware cycles and retail outlets to reduce orders due to expected lower consumer retail spend in the short- to midterm, IDC expects retail value of videogame hardware and software to reach $124 billion by 2013.
