Game industry drops 16% during 2010

Mike Bantick
Wednesday, 09 February 2011 12:50

Opinion and Analysis

Figures released today back-up some of the glum statements from those associated with the Australian games industry through 2010.  During the year there was a continued shift of sales dynamics in the sector as well as contraction in the Australian games development field.

At the annual love in for the Australian games development industry, Game Connect Asia Pacific 2010, late last year it was evident those that work in this field, passionate as they are, were aware a shift was occurring.

The strengthening Aussie dollar and the closing of one of Australia's most revered and long standing studios, Krome Studios did put a dampener on the generally upbeat discussions around this country being a hub of the overall growing industry.

Data released by independent market research group Gfk Retail and Technology Australia regarding sales from hardware, gaming peripherals and traditional on-the-shelf boxed software indicate a retraction in this area as well.  Remembering the figures don't include the increasingly popular digital download and online game subscription income derived.

Console game sales were down by 13 per cent with 16.9 million units sold in 2010 compared to 19.3 million units sold in 2009.  Console sales also declined by 27 per cent with 1.6 million units sold in 2010 compared to
2.2 million units sold in 2009.

However, PC game sales increased by 7 per cent from last year with 3.1 million units sold in 2010 compared to 3 million in 2009.

Ron Curry, CEO of the Interactive Games & Entertainment Association (iGEA), says despite the dip in sales Australia's video and computer games industry remains buoyant compared to overseas gaming markets which have not witnessed sales increases, as Australia did, over the past two years due to tough economic conditions.

"Compared to the most other international territories, our local interactive entertainment market has done considerably well to weather the global economic crisis which affected a broad range of entertainment industries and what we are seeing now is a levelling or righting of the market."

"Innovation continues to thrive and millions of Australian families are engaging with games through multiple formats whether it's on a mobile device, online subscription or in more traditional PC and console formats," said Curry.

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