2002 PC and Video Game Sales Break Record.

Business Editors

WASHINGTON, D.C.--(BUSINESS WIRE)--Jan. 28, 2003

The U.S. entertainment software industry grew 8% to a record-breaking $6.9 billion in 2002, according to data released today by the Interactive Digital Software Association (IDSA), the U.S. association representing computer and video game software publishers.

The IDSA today also released results of a new poll that shows that consumers plan to keep spending on computer and video games in 2003, with 41% of all Americans, and almost two-thirds (63%) of parents, saying that they plan to purchase at least one game this year. In addition, a majority of Americans (56%) under the age of 45 plan to buy at least one computer or video game this year; while 37% of 45 to 54 year olds, and 26% of adults ages 55 to 64, also plan to buy at least one game this year. The poll was conducted in mid-January for the IDSA by KRC Research, and dramatically illustrates the industry's popularity among adult consumers.

"The record-breaking sales of computer and video games in 2002 will continue in the years ahead as more ground-breaking games are introduced, hardware prices come down, and the audience for games broadens and deepens," said IDSA president Douglas Lowenstein. "Indeed, we believe that 2003 will be the peak year of the current hardware cycle, with software sales surging at least 10% yet again, and perhaps considerably more depending on other external factors."

According to numbers announced today by the IDSA, and compiled by NPDFunworld(SM) and NPDTechworld(SM), 2002 U.S. sales of console games totaled $5.5 billion while COMPUTER games accounted for $1.4 billion in sales, including edutainment games. Total game software sales in 2001 were $6.35 billion, with console games bringing in $4.6 billion in sales and COMPUTER games accounting for $1.75 billion. (Note: The numbers released by the IDSA today do not include sales of game hardware or accessories.)

"One obvious trend apparent from the 2002 data is that console software is capturing an even greater share of the market than ever before, accounting for 80% of industry software sales compared with 65% five years ago," Lowenstein said. "Again, this is another reflection of the fact that the market for consoles is aging and broadening far beyond its original base of teenage boys."

Consistent with past years the majority of games that sold were rated "E" for "Everyone" (55.7%), followed by "Teen" (T) rated games (27.6%), and by "Mature" (M) rated games (13.2%). But while the overall percentage of "Teen" and "Mature" games rose, E and T-rated games continue to dominate the best-seller charts. Of the top 20 best-selling console games, 80% were rated E or T, while 90% of the top 20 COMPUTER games were rated either E or T.

Console game players most often purchased action (25.1%), sports (19.5 %), and racing titles (16.6%), followed by edutainment (7.6%), role-playing games (7.4%), fighting games (6.4%), first person shooters (5.5%), and adventure games (5.1%).

Computer gamers, however, most often purchased strategy games (27.4%), children's games (15.9%) and shooter games (11.5%), followed by family entertainment titles (9.6%), role-playing games (8%), sports titles (6.3%), racing (4.4%), simulation (4.1%), and fighting games (0.1%).

NPDFunworld(SM) and NPDTechworld(SM) are part of the NPD Group, Inc., a global market information company that measures product movement and consumer behavior across a broad range of industries.

About the IDSA

The IDSA is the U.S. association dedicated to serving the business and public affairs needs of companies publishing interactive games for video game consoles, handheld devices, personal computers, and the Internet. IDSA members collectively account for more than 90% of the $6.9 billion in entertainment software sales in the United States in 2002, and billions more in export sales of American-made entertainment software. The IDSA offers services to interactive entertainment software publishers including a global anti-piracy program, owning the Electronic Entertainment Expo trade show, business and consumer research, government relations and First Amendment and intellectual property protection efforts.