Sales of video game console hardware and software (including digital downloads) are expected to reach $22.7 billion in 2011. In spite of the industry’s history of rapid growth, sales in the near future will slow as the current generation of consoles ages; the next-generation consoles are not expected to reach the market until 2012 and 2013. Simultaneously, mobile and social gaming are increasing in popularity, and the games offered are free or at minimal cost relative to the purchase price of a console game.

This suggests that ancillary sources of revenue, including product placement, will become increasingly important, with research in this report finding elevated levels of engagement among the most avid gamers. Publishers, as well as brands interested in marketing themselves in this arena, should be better able to exploit product within games and extend popular game franchises into licensed merchandise.

This report emphasizes not only consumer insights about gamers, but also the industry that revolves around their needs, with subjects including the role of motion controllers and the challenge of attracting a wider audience without alienating core console gamers.

Analysis and insights include:

Size and growth forecast for the home console hardware and software market

How leading publishers and retailers are innovating to hold their audience

The role of franchises in sales growth

Marketing and advertising strategies of the leading game companies

In-depth coverage of gamers’ preferences and spending habits

Custom survey results and insights among teen gamers

Future opportunities in game development, marketing and promotion