WSJ.com - Games Industry Rev Seen At Historic High In 2007 - Report "With the three 128-bit consoles launched in all the major markets and with software sales to increase accordingly, 2003 represented the best year ever for the games industry at $33.2 billion. This figure will be bettered in 2004, with sales forecast at $33.8 billion, and will gradually rise until the peak of $52.1 billion 2007 when sales of next generation consoles are likely to be their highest.
However, the console cycle will see a fall in both hardware and software sales by 2010. The PC software sector will continue its steady decline - falling by $2 billion or 40% between 2000 and 2010. The highest growth will come from broadband, mobile and interactive TV, which are together forecast to generate revenues of $13.1 billion by 2010 - up from $3.9 billion in 2004.
About 15.5 million console hardware units were sold in the U.S. in 2002, but this level is expected to fall to 11.3 million in 2004 and 9.9 million in 2005 despite anticipated price cuts. Lifetime hardware sales for the PlayStation 2 in the U.S. are expected to reach 46 million, with the last hardware unit sold in 2010. This compares with 12.7 million for the present Xbox model and 8.0 million for the GameCube.
The next generation Xbox console is assumed to go on sale in the U.S. in late 2005. Console software sales breached the 100 million mark in 2003, and will continue to stay above that level. Handheld sales will decline steadily until 2005 when the PSP and Nintendo DS will start to make a significant impact."