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Global Video Game Market Forecast

The release of next-generation video game consoles yet this year and early next year will spur the global games market to a record high of $58.4 billion in 2007, according to a report from U.K.-based market research firm Informa. The games industry will generate $35.3 billion in 2005, a 5.3 percent increase over 2004, the firm predicted, with the console games industry representing half of games revenue worldwide.

Console hardware sales are expected to grow from $3.9 billion in 2005 to $5.8 billion in 2010, while games for the consoles will generate $13 billion this year and $17.2 billion in 2010.

"We still anticipate the PS3 to take the largest share in the next wave of consoles, but it will not have such an easy time of it this time around. The Xbox 360 will benefit from first-mover advantage and Nintendo has already revealed some interesting ideas for its Revolution concept," said Informa's Zenobia Talati, co-author of the report. Informa also projects the fast-growing mobile games sector to generate $2.6 billion in 2005, growing to $11 billion by 2010.

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