Commercial aspects

Game sales

The three largest producers of and markets for computer and video games (in order) are North America (US and Canada), Japan and the United Kingdom. Other significant markets include Australia, Spain, Germany, South Korea, Mexico, France and Italy.[34] Both India and China are considered emerging markets in the video game industry and sales are expected to rise significantly in the coming years.

Sales of different types of games vary widely between these markets due to local preferences. Japanese consumers tend to purchase console games over computer games, with a strong preference for games catering to local tastes. In South Korea, computer games are preferred, especially MMORPG games and real-time strategy games; there are over 20,000 PC bang Internet cafés where computer games can be played for an hourly charge.

The NPD Group tracks computer and video game sales in the United States. It reported that:

* Console and portable software sales: $6.2 billion, up 8% from 2003[35]
* Console and portable hardware and accessory sales: $3.7 billion, down 35% from 2003[35]
* PC game sales: $1.1 billion, down 15% from 2006[36]

Also note that PC games that are digitally distributed either directly or by distribution networks such as Steam are not tracked by the NPD, and Steam does not list sales numbers for games downloaded through their service. Software piracy is also more rampant on the PC.[37]

These figures are sales in dollars, not units; unit shipments for each category were higher than the dollar sales numbers indicate, as more software and hardware was sold at reduced prices compared to 2003. However, with the release of the next-generation consoles in 2006, these numbers have increased dramatically. The game and film industries are also becoming increasingly intertwined, with companies like Sony having significant stakes in both. A large number of summer blockbuster films spawn a companion game, often launching at the same time to share the marketing costs.

There is also controversy relating video games in Australia and other PAL regions. In general when compared to the US, PAL gamers have to pay up to 40% to 50% more.[38] More of a problem in Australia is where games are constantly delayed for no apparent reason, most notably games released by Nintendo. As English is the main language in the Australian region there is no need for any translation and the complications of differences between the PAL and NTSC video formats are not existent, as the majority of video displays in Australia are fully capable of running at a 60 Hz format. There is also the problem of regional lockout in Australia, with most DVD players release coming region free in order to comply with local laws,[39][40] but video game consoles are still sold fully region locked. Some efforts to increase awareness of the issue, specifically to Nintendo of Australia, was in the form of a formal report outlining the issues, published by Aaron Rex Davies.[41] The report has gone on to gain a lot of attention in the public media.[42]