Video Game Market Saturation

Posted on January 10, 2006

Making money in video games may be coming more difficult according to a new Forrester Research study. A BBC article said the study found that 77% of 16-25 year-old males regularly play video games and it jumps to 94% in the 12-17 year-old demographic.

The study finds that a gradual evolution in the gaming industry is more likely than a revolution in the way people play games and use consoles.

Although gaming is a huge industry, the report warned that turning a profit will become increasingly difficult.

For players such as Microsoft, Sony and Nintendo the fact that the market is reaching saturation point coupled with the increasing costs of producing both games and consoles means profit margins may not be a big as they would like.

The study said most of the growth will come from mobile gaming devices. Another growth area looks to be online gaming worlds, like World of Warcraft, but the BBC article did not discuss this aspect of gaming.

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