Decline of PC game sales in the US

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A Decline of PC game sales in the US refers to an apparent downward trend in the United States computer game market.

[edit] Explanations for decline

Compared to the continued annual growth rate of console gaming, US PC game sales have been on the decline since the release of Sony's Playstation 2. A proliferation of high-speed broadband internet during the early 2000s is thought to have facilitated the growth of software piracy and some analysts attribute lower PC game sales to this effect. However note that consoles are now suffering from this effect too, due to the prevalence of DVD burners and DVD-based consoles. Others claim that PC sales suffered because of competition from consoles that offer lower prices on hardware and easier usability. Also Microsoft has admitted that some of its actions have contributed to the downturn [1]. In vying for a share of the console market, Microsoft focused its efforts on an Xbox marketing campaign at the expense of not providing similar support for PC gaming.

[edit] Evidence in sales

US PC Game Software Sales [2] [3][4]

• 1998 - $1.7 billion
• 1999 - $1.9 billion
• 2000 - $1.78 billion (84.9 million units)
• 2001 - $1.75 billion (83.6 million units)
• 2002 - $1.4 billion (61.5 million units)
• 2003 - $1.2 billion (52.8 million units)
• 2004 - $1.1 billion (45 million units)
• 2005 - $953 million (38 million) [5] + $344 million digital sales [6]
• 2006 - $970 million [7]

2006 marked the first increase in retail PC game sales since 1999, up almost 2% from the previous year. Note that these sums do not include (unless stated) the concurrent revenue from MMORPG subscriptions and sales via digital delivery, market segments that have been achieving significant annual gains.

For example, as of March. 2006, the North America users for World of Warcraft (WoW) was 1.5 million and these users pay $15 per month. (1.5 million * $15 * 12 month = $270 million ) The other area is micro-transaction for on-line casual game. This number is more difficult to estimate.

[edit] A possible reprieve

Although PC game sales are down in the US, many companies are still sticking with the platform. Microsoft is planning to provide additional support for PC gaming after the release of the Xbox 360, including gaming-specific features in Windows Vista, cross-platform peripherals, and additional marketing aimed at PC gamers. Yet Microsoft's efforts have been met with some skepticism. Gabe Newell, developer of the Half-Life series of best selling computer games, had this to say about Vista's gaming features:

"There's a deeper issue in this, and that's 'what do we need from platforms?' Look, I spoke to some people at Microsoft, and as I said, I can't point to a single feature in Vista that I care about that solves problems for us. At all."[8]

However, Paul Thurrott, veteran reviewer of Microsoft platforms, recently wrote that he is delighted to see Microsoft taking Windows gaming to the next level by the introduction of gaming-specific features in Windows Vista, as well as their Games for Windows marketing campaign.^[1]