Ubisoft 2004 Annual Report Download - page 13

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11
UBISOFT > 2005 ANNUAL REPORT
THE VIDEOGAME MARKET
THE ACTIVITIES 02
Booming
entertainment sector
Initially a niche market in the entertainment industry,
videogames have grown rapidly. In 2004, the
videogame industry brought in $25 billion1,as much as
the film industry2;it even overtook the latter in the
United States, where it is also closing in on the music
industry. Nevertheless, its success is closely linked to
that of the movie industry: between 2001 and 2003,
57% of the sales in the USA of major videogame
publishers came from licenses, particularly those from
films.
Achanging
consumer base
Videogames are as much a form of mass entertainment
today as the cinema, no longer the exclusive domain of
hardcore gamers or children. The average age of
videogame players has been rising around the world:
according to the Entertainment Software Association3,
American players are on average 30 years of age and
are faithful to the pastime, as they have been playing
for some 9.5 years. Women are also a key target group:
though up to now rather neglectedby publishers,
they currentlyrepresent 25% of videogame players
in Europe. Today's players have larger incomes and
are more demanding, which translates into new
opportunities for publishers.
Next-generation
consoles
The next-generation of home consoles, expected for
the end of 2005 and during 2006, will take videogames
to a higher level. With their exceptional technology,
the Xbox360™ from Microsoft, Sony’s PS3™ and
Nintendo’s Revolution4will reinvent gaming as we know
it, plunging players into an unprecedented world of
highly-charged emotions and graphic beauty. As for
portable platforms, the impressive launch of the new
consoles (over 5 million Nintendo DS™ units have
been sold and more than 5 million PlayStation®Portable
units shipped by Sony worldwide) points to the
extraordinary sales potential for games. Furthermore,
these portable consoles arrive at the perfect time for
publishers and developers, as they will boost growth
during the transition period for home consoles.
1 - PricewaterhouseCoopers' “Global Entertainment and Media
Outlook” report.
2 - According to MPA’s Worldwide Market research “2004
International Theatrical Market” the cinema box office brought in
$25.2 billion worldwide in 2004.
3 - Source: ESA’s 2005 Essential facts about the computer and
videogame industry.
4 - Working title.
11.4 music (20%)
9.7 videogame software &
hardware (17%)
17.1 dvd & vhs sales (30%)
8.8 dvd & vhs rentals (16%)
GROWTH OF SOFTWARE SALES IN THE USA AND EUROPE
(in billions of dollars)
Source: ELSPA(Entertainment & Leisure Software Publishers
Association in the United Kingdom).
98 99 00 01 02 03 04
14
12
10
8
9.5 box office (17%)
2004 ENTERTAINMENT INDUSTRY
TURNOVER IN THE USA
(in billions of dollars)
Sources: RIAA, MPAA, NPD.
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