Bit players: Despite strong gaming demand, smaller players are exiting the industry

The Online Video Game Sales industry encompasses multi-channel operators that have both bricks-and-mortar stores and online operations, as well as pure-play retailers that only operate online. Multi-channel operators, such as EB Games and JB Hi-Fi primarily sell physical video game products online, to complement their retail store sales. Online sales of video games by traditional retailers serve mostly to expand their exposure in the digital space, as their physical stores still contribute a considerable portion of total revenue. Conversely, large console brands, such as Microsoft and Sony complement their sales to retailers with direct sales to consumers via digital more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Industry operators face strong competition from smartphone and tablet games and apps
  • Household discretionary income growth has boosted industry revenue over the past five years
  • The continued NBN rollout is expected to boost internet speeds and support online video game stores
  • Industry Report - Industry SWOT Analysis Chapter

    The Online Video Game Sales industry is in the growth stage of its life cycle. Industry value added, a measure of the industry's contribution to the wider economy, is projected to grow at an annualised 6.9% over the ten years through 2023-24. This represents a significant outperformance relative to the overall economy, with real GDP forecast to grow at an annualised 2.7% over the same period.Increasing internet connectivity and improving broadband speeds are driving industry growth. As consumers become more tech-savvy, industry firms have been able to attract greater demand. This has led to an expansion of video game titles available online, particularly following the release of next-generation consoles and the launch of related games. The...purchase to read more.

    Additional Insights for the Online Video Game Sales Industry

    IBISWorld has determined the most important Key Success Factors for the Online Video Game Sales are:

  • Ability to alter goods and services produced in favour of market conditions
  • Ability to control stock on hand
  • Provision of superior after sales service
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Consumer sentiment index in the Online Video Game Sales industry impact industry performance..

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    What's in this report

    What is the Online Video Game Sales Industry?

    Industry operators sell video game products online, either as digital downloads or as online purchases of physically packaged games. Video games sold include PC and console games. Mobile games, in-game microtransactions and sales of console units and accessories, are excluded from the industry.

    Industry Products
  • PC games
  • Console games (digital)
  • Console games (packaged)
  • Industry Activities
  • Online sale of digital PC games
  • Online sale of digital console games
  • Online sale of physical PC games
  • Online sale of physical console games
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • Consumer sentiment index
  • Expenditure on recreation and culture
  • Internet subscribers
  • Demand from video game, dvd and recorded music retailing

  • Current Performance
  • Mainstream gaming
  • Industry structure
  • Mobile competition
  • PC video games
  • Console wars
  • Chart: Revenue Growth

  • Industry Outlook
  • Online surge
  • Intensifying

    console wars

  • Subscription models
  • Industry structure
  • Table: Online Video Game Sales Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Online Video Game Sales Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Video and DVD Hire Outlets
  • Consumers

  • Key Selling Industries
  • Courier Pick-up and Delivery Services
  • Internet Service Providers
  • Motion Picture and Video Distribution
  • Motion Picture and Video Production

  • Products & Services
  • Console games (packaged)
  • PC games
  • Console games (digital)
  • Chart: Online Video Game Sales Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 15 to 34 years
  • People aged 35 to 54 years
  • People aged 55 years and over
  • Chart: Major Market Segmentation for the Online Video Game Sales Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Online Video Game Sales

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Online Video Game Sales Industry

  • Industry Globalization
    Sony Interactive Entertainment Australia Pty Limited, Microsoft Pty Limited, JB Hi-Fi Limited, Electronic Arts Proprietary Limited, Electronics Boutique Australia Pty Limited,
  • Table: Sony Interactive Entertainment Australia Pty Limited - financial performance
  • Table: Microsoft Pty Limited - financial performance
  • Table: JB Hi-Fi Limited - financial performance
  • Table: Electronic Arts Proprietary Limited - financial performance
  • Table: Electronics Boutique Australia Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Online Video Game Sales Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Online Video Game Sales Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Game Console
  • An interactive computerised system used to play video games.
  • Multiplayer Online Game
  • These games are played online, and enable gamers from various location to interact in real time.
  • Software As A Service (Saas)
  • Software licensing model that operates on a subscription basis where the client incurs a recurring fee for usage.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Online Video Game Sales market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Online Video Game Sales:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Online Video Game Sales market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Online Video Game Sales, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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