Gaming PC Market Bigger than Thought

$20 Billion with gains in all regions but Asia largest market

Robert Dow

TIBURON, CA-November 18, 2008-Jon Peddie Research (JPR), the industry’s research and consulting firm for graphics and multimedia, today announced estimated worldwide PC gaming hardware shipments and regional; market share out to 2012 – 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’s 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 utilization for gaming is about 6 percent

The total, hardware only, market value in 2008 was just over $20 billion, and that will grow to over $34 billion by 2012 – and those systems will 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 to the PC gaming direction. Why? Because the cost of an HDTV (for the console, in addition to the console is a serious investment in something you can’t do thousands of other things with like a personal computer.

One size doesn’t fit all

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 those 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.

Desktops and notebooks

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

DIY and aftermarket

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 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 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.”