Online PC gaming revenue led the way in 2007 with $4.8 billion, nearly double the worldwide retail sales numbers for PC games. Digital distribution sales approached $2 billion, while advertising revenues from websites, portals, and in-game ads accounted for $800 million. Both are expected to grow substantially as major developers and publishers begin to adopt formal strategies to take advantage of new online opportunities.

“Our analysis clearly shows incredible growth in online PC gaming, proof that this industry is far stronger than anyone has reported,” said Stude. “Today’s consumers shop where they live - online.”

According to DFC Intelligence, there is even more room for growth as the broadband market matures.

“By pioneering new business models, the PC has quietly remained the single leading platform for games, not only in terms of consumer usage, but revenue generation,” said David Cole, an analyst with DFC Intelligence. “The most fascinating thing about PC gaming is its ability to attract such a diverse audience, both demographically and geographically. The real key has been the rapid growth in penetration of broadband-connected PCs in all markets around the world. Broadband-connected PCs are the key driver of growth for PC gaming. DFC Intelligence estimated that by the end of 2007 less than one-third of households in the top 20 markets for games had a high-speed Internet connection. That clearly indicates that there is still plenty of growth to come. The initiatives of the PCGA will be a key enabler of growth as they will help the industry identify key trends and opportunities in this rapidly emerging market.”

The bi-annual Horizons Report encompasses sales from every region around the world, and from every part of the PC gaming industry compiled by the PCGA from internal resources through a third party. This includes retail, online gaming, digital distribution, and online advertising.