Game Industry Grows 100% In 6 Years

Outstripping growth in other industries such as cinema box office and music retail.

The last six years have seen the video games industry grow by over 100 per cent; outstripping growth in other entertainment industries such as cinema box office, video rental and music retail.

For the six years from 1997 to 2003, the UK console software market is also the largest in Europe, and larger than both France and Germany combined, despite a population of just under 60 million; the other two countries combined are over 140 million.

Following the U.S. and Japan, the UK is the third largest market in the world. The Western European market, as a whole was $1.2 billion smaller than the U.S. market, but $3.7 billion larger than Japan in 2003.

These figures come from the latest Screen Digest report which estimates that the global interactive leisure software market was worth $18.2 billion in 2003, up 10.8 per cent from 2002.

The UK 2003 market rose by nearly 7 per cent, over 2002, to £1.152 million, the highest value ever reached. This contributed to a total UK market of over £2 billion for software and hardware for the second year running.

By 2007 the global retail market is expected to grow by 16 per cent to $21.1 billion.

Last year, leisure software maintained its position as one of the UK’s industrial success stories with a positive balance of trade in excess of £200 million, as opposed to film and TV, which continued to exhibit substantial negative balances of trade.

Roger Bennett, director general of ELSPA, said: " The computer and video games industry continues to demonstrate the most dynamic growth rate of all the creative industries.

“As both central and local government recognise the value of this industry to UK balance of trade, it is gratifying to have proof of the every growing popularity of interactive entertainment and the broadening customer base."

Ben Keen, chief analyst of Screen Digest, commented: " Our research suggests there is plenty more scope for strong sales within the current console cycle. However, innovation is the cornerstone of the games industry and we expect the launch of exciting new handheld machines to give the market a huge boost ahead of the next generation of TV-based consoles."