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Gaming PC Market Bigger Than Thought, And Growing

by Rainier on Nov. 18, 2008 @ 6:05 a.m. PST

A recent study by Jon Peddie Research (JPR) estimated that the total market value for PC gaming hardware in 2008 was just over $20 billion, which will grow to over $34 billion by 2012, with an additional $6 billion in software and services sales.

The growth is an amazing:

  • The Enthusiast segment has a worldwide CAGR of 9%
  • The Performance segment will have a CAGR of 19%
  • The Mainstream segment CAGR is 21%

Gaming PCs touch all segments of the market, with the most expensive at the high-end, known as the Enthusiast segment where the utilization for gaming is highest, down to the mainstream where the purchase motivation for gaming is about 6 percent.

The total market value for PC gaming hardware in 2008 was just over $20 billion, and that will grow to over $34 billion by 2012 - and those systems pull in an additional $6 billion in software and services sales.

Also, the economic recession may stymie the assumed growth of the console gaming market and shift the balance in the direction of PC gaming. Why? Because the cost of an HDTV for the console is a serious investment, particularly when a console is limited in what it can do, unlike a personal computer.

However, all countries are not alike in their PC gaming habits. Jon Peddie Research looked at gaming cultures worldwide as an influence on hardware sales in different regions. Hardware suppliers are cautioned: Don't get caught sending the wrong stuff to the wrong place.

The three segments studied in these reports examine and profile thirty-seven countries in seven regions giving the reader the highest granularity in any report on PC gaming hardware ever.

Gaming PCs are delivered in both desktop and notebook configurations, with notebooks showing strong gains.

In addition to branded and boutique fully assembled PCs, JPR discovered there is a robust market of do-it-yourselfers and consumers who upgrade their PCs with high-performance gaming graphics boards.

"Don't let the retail numbers fool you," said Ted Pollak, co-author of the report series. "Enthusiast PC gamers often latch onto one or two games that offer multiplayer options and stick to these titles for years. Hardware is where they spend the big bucks. The retail numbers don't capture the casual and digitally distributed games either. Retail software figures are not an accurate barometer for the health of the PC gaming industry."

"The PC Gaming Hardware industry is a worldwide growth phenomenon and there are striking changes to the environment on the horizon," said Dr. Jon Peddie, president of Jon Peddie research. "Don't get caught surprised - our PC gaming hardware reports will provide virtual binoculars for companies involved in the space so that they are prepared for the approaching shifts. Now, more than ever, suppliers can't afford to make any missteps in their marketing and sales strategies."

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