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Consumer Marketplace Growth in the Gaming Industry

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The US Gaming Industry ended 2007 with record retail sales of nearly $18 billion as reported by Gamespot posted February 14, 2008. This is up from $13.5 billion in 2006 according to NPD, Inc. (a market research firm). In a report by Gamespot, posted April 17, 2008, the March 2008 US retail sales for hardware, software and accessories amounted to $1.7 billion, up 57% from $1.1 billion posted from March 2007.

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Based on these numbers, you would never think we were in a recession. It is our opinion this industry will continue its growth. We’ve formed this opinion on the following. The ESA (Entertainment Software Association) estimates 69% of all American heads of household play video or computer games. While the typical electronic game enthusiast is between the ages of 14 and 35, the electronic games industry is broadening it’s appeal.

More females and seniors are playing video games. With the introduction of products like “Wii” from Nintendo, more adults are playing as the percentage who played video games in their childhood and continue to play and advance to the next generation of products. The average gamer is now 33 years old according to ESA. In addition, the availability of pre-played games enables a lower economic demographic access to electronic video games.

The evolution of hardware platforms, with faster processors, better graphics and audio, will drive the next generation of software. This cycle of evolution with the consumer receiving an enhanced gaming experience will continue to drive this industry forward.


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