“Hardcore” Console Games Remain #1 in Generating Video Game Industry Profit

Console Gaming Continues to Lead Profit Trend

Despite claims that the mobile industry was overtaking the home console video game industry, new numbers from the NPD Group, IDG, and Microsoft have given physical proof to the counter-argument that far more money is spent on software for console gaming units than anywhere else in the industry. That factor held true as the following breakdown was served up by the established statistics sources for such historic game industry sales figures. I’ll go over those numbers and also draw some conclusions from the data. As always, feel free to disagree and leave your thoughts in our comments section if you’d like them to be considered by our corporate partners and editorial staff.

Sub-Industry Rank by Profit

$27 Billion (yearly) – Console Video Games (PlayStation 4, Xbox One, Wii U, PS3, 360, Wii, PS2)

$12 Billion (yearly) – Computer Video Games (Windows PC, Mac, Linux)

$10 Billion (yearly) – Mobile / Tablet Video Games (Android, iOS, Windows 8 Phone, Fire OS, Etc.)

$8 Billion (yearly) – Social / Web Browser Video Games (Facebook, Runescape, HTML5 Games, Etc.)

$8 Billion (yearly) – Dedicated Handheld Gaming (3DS, Vita, PSP)

Extra: Overall Industry Stats

$65 Billion Spent Worldwide on Overall Video Games Industry (yearly)

Over 1 Billion Gamers Worldwide

42% of Gamer $$$ Spent on Console Games

$12. 1 Billion of that $65 Billion was Profit (Roughly 18.6% Profit Margin)

Conclusions from this Data

  • Video Games industry is more dominated by hardcore console game software sales than previously believed.
  • Overall, the Video Games industry is growing, not shrinking – on all fronts (platforms).
  • The most popular video games are very, very expensive to produce and will often not yield a substantial profit; if any.
  • Computer gaming has experienced a huge boom since Steam continues growing momentum, next-gen PS4 & Xbox One took too long to release and used low specs resulting in many people jumping on the PC bandwagon. NVIDIA and AMD have a healthy and raging competition for graphics part solutions among other various parts vendors benefiting from this alongside indie video game companies.
  • Mobile / Tablet Gaming remains a huge and stable portion of the video game industry, much larger than the dedicated handheld games market which is mainly dominated by various 3DS models and Nintendo first party games right now.

Editor’s Note: RealGamerNewZ has moved web servers, some older posts can no longer be commented on and have been preserved without their images. Thank you for your understanding in this matter. This article was written by Jon Ireson on 20141130 and was last modified on 20141130 .