European Interactive games
European Interactive Games – The 2005 State of the Industry Report
GIC was one of the authors of this seminal study of the European and North American PC, network and video games markets, which analyses business models, opportunities and trends. You can purchase the report here.
This report, authored by Games Investor Consulting, comprises analysis of the changing factors affecting the key players throughout the traditional and network games value chain in Europe and North America. The report is published in association with games trade body ELSPA.
Key Findings from the Report
• The 2004 uplift in European software sales was more subdued than expected, partly due to hardware shortages and the delay of key software releases.
• Average game development costs have risen by 300% since 1999 and are expected to leap again during the next cycle
• Consolidation in the UK development market slowed during 2004 but is expected to accelerate again with the advent of next-generation consoles.
• However, the total number of employees in the UK games industry as a whole rose by 7% between 2000 and 2004
• Network gaming continues to mature at a rapid pace. Including online console, iDTV and mobile gaming, total network games revenue represented 9.9% of total games software sales in 2004 and is forecast to reach 20% by 2008.
• North American and European games companies remain attractive investment opportunities. Publicly quoted games companies have raised over $2.4bn since 2000. Privately held games companies have raised over $0.75bn during the same period, 70% of which has gone to network games companies.
Table of Contents
Executive summary
The market
Development
Development investment
Employment
Exports and balance of trade
Industry trends
Industry structure and workings
Development
Publishing
Distribution
Retail
Technology platforms
Games industry cycle
Investment in the games industry
Public markets
Private equity markets
Investment incentives
UK investment incentives
Intellectual Property
Internal IP
External IP licensing
License costs
Developers
Market size
Market composition
Development trends
Consolidation - background
Consolidation - characteristics
Consolidation - who benefits and the future
Specialisation
Adverse exchange rates movement
Outsourcing
Middleware and development tools
Growing government involvement
Mergers and acquisitions
Alternative finance
Business models - the search for a new model
The standard model
Deductions
Royalty rate
The development business model in practice
Alternative development business models
European independent development companies to watch
Publishers
Market size and composition
Publishing trends
Control of risk
Consolidation
Mergers and acquisitions
The decaying Japanese market - isolated incident or ill omen?
Content trends
The connectivity content imperative
Console software publishing longevity
Next generation console prospects
Online piracy
Publishing business models
Alternative development funding
Other publishing costs
Product promotion
Manufacturing costs
The publishing business model in practice
Publisher pricing
Publisher overheads
Ancillary revenue business models
First-party versus third-party publishing
Publishers to watch
Distribution, retail, peripherals and middleware
The distribution market
Distribution trends
Distribution business models
The retail market
Retail market trends
The retail business model
Peripherals
The peripherals business model
Middleware
Middleware business models
Criterion loses its independence
New distribution channels
Online PC gaming
MMOG market
Casual web games market
European online games market growth
Digital distribution
Online console gaming
Diversifying online console business models
The battle for online console customer ownership
Communications enablement
Mobile gaming
The Mobile games value chain
The Mobile games business model
