Online PC gaming revenue totalled $4.8 billion and was the biggest contributor to total PC gaming revenues last year, this was nearly double the worldwide retail sales. Digital distribution sales were approaching $2 billion and advertising revenue (websites and in-game ads included) accounted for $800 million of the total.

My thoughts?

This is great to see that PC gaming is such a rich industry, I think this just goes to show that PC gaming is not dying and is thriving, and hopefully when the next set of findings are published we will see that it is growing year on year.

The most striking factor is that retail sales were absolutely swamped by online gaming revenue, while it has been common knowledge for a while that games like World of Warcraft are massive hits to see it put so plainly in black and white must be worrying for traditional retailers. With digital distibution nearly $2 billion it seems that traditional retailers should be looking at how to work with digital distributors in order to help maximise sales all around.

The following statement from DFC Intelligence quoted in the report makes for very interesting reading.

“By pioneering new business models, the PC has quietly remained the single leading platform for games, not only in terms of consumer usage, but revenue generation,” said David Cole, an analyst with DFC Intelligence. “The most fascinating thing about PC gaming is its ability to attract such a diverse audience, both demographically and geographically. The real key has been the rapid growth in penetration of broadband-connected PCs in all markets around the world. Broadband-connected PCs are the key driver of growth for PC gaming. DFC Intelligence estimated that by the end of 2007 less than one-third of households in the top 20 markets for games had a high-speed Internet connection. That clearly indicates that there is still plenty of growth to come. The initiatives of the PCGA will be a key enabler of growth as they will help the industry identify key trends and opportunities in this rapidly emerging market.”

I must say this is entirely true, with the ever constant expansion of broadband around the world there is going to be an ever increasing number of people spreading into online gaming and digital distribution. I think that this is a key factor in why the PC is such a strong platform.

We shall have to wait until the next report covering 2008 to see if there is a year on year improvement in PC earnings, hopefully we will see this happen.

Infinity Ward Community Manager Robert Bowling has confirmed that the map pack is being ’sponsored by nVidea’ and that the graphics card manufacturers have more things planned for us PC gamers.

Is this a sign that nVidea, members of the PC Gaming Alliance are taking the PCGA seriously and helping promote PC gaming? I hope so.

TG: But then you have Cliffy B come out and say that PC gaming is in disarray and…

MR: Oh he’s an idiot [laughing]. No, he’s a great guy. Cliff makes console games though, right? He’s on a console team that makes what is primarily a console game.

This is a great little interview regarding the PC Gaming Alliance and Rein’s views on the PC at the moment. Find it here.