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Revenue in enthusiast market will grow significantly despite lost market share

Computer and hardware manufactures know that consumers willing to spend vast sums of cash can most often be found in the enthusiast and gamer markets. These people will spend hundreds of dollars on the latest video cards and processors in pursuit of every last ounce of performance.

Jon Peddie Research (JPR) has announced new data on the PC gaming hardware market and the worldwide DIY market segments of the computer industry. According to JPR, 46% of the dollars spent in 2009 on gaming-motivated PC hardware was from the enthusiast class. The money was spent on gear like boutique PCs, high-end processors, and SSDs.

JPR is predicting that a shift in the product mix is coming to the PC gaming market. By 2013, the enthusiast class will lose market share to the performance and mainstream classes. However, the money spent in the enthusiast hardware segment will grow significantly from $9.5 billion to almost $12.5 billion in 2013 making the enthusiast class one of the most important for manufacturers.

JPR video game analyst Ted Pollak said, "PC hardware has caught up to most of the software and people are able to play computationally intensive games on Performance level systems. Performance systems now even support high resolution for all but the most demanding simulations and FPS's. The frequency of Direct X updates is also driving some people toward mid-range GPU's. Some gamers are buying Performance GPUs at a higher refresh rate to engage the latest Direct X version, instead of a longer term investment for Enthusiast GPU's."

JPR president Jon Peddie said, "Gamers are ordering, building, and modding their rigs with components that just a few years ago were simply not available with any economy of scale. SSD's, water cooling, gaming mice and keyboards and other components have come to the Performance class and gamers are starting to snap them up. "

The firm also announced that the global market analysis for DIY PC builds covering gamer segments and business segments has predicted robust growth as well. The market will be worth about $10.4 billion in sales annually and much of the sales will be driven by businesses looking to get better performance from their enterprise applications.

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RE: Soo PC gaming isn't dead or dying?
By wempa on 3/24/2010 12:26:39 PM , Rating: 2
What he is saying is that anybody can run a pirated PC game because the cracks are all in the software. With consoles, they have to be opened up and some modification performed. You also lose your warranty when you open up the console. With a PC, it's MUCH easier. Still, I don't buy the piracy argument either. Good games will sell. I used to be a huge fan of the Blizzard games. There was enough play value in them to make them worth the $50 investment. Sure, piracy plays a part, but there are ways to limit the damage done by it.

RE: Soo PC gaming isn't dead or dying?
By themaster08 on 3/24/2010 12:35:33 PM , Rating: 2
What he is saying is that anybody can run a pirated PC game because the cracks are all in the software. With consoles, they have to be opened up and some modification performed. You also lose your warranty when you open up the console.

I understand the argument, and it is absolutely valid. However, it's becoming increasingly difficult to pirate PC games. Sure, there are cracks and whatnot, but online gaming will be non-existent, and in some cases, the crack will leave them with some form of malware.

And there's always that fundamental argument. If they couldn't pirate, would they buy the game then? I don't condone pirating, but developers aren't losing money on people that wouldn't buy their game anyway.

By wempa on 3/24/2010 12:49:50 PM , Rating: 2
I agree with what you are saying. If the companies focus on making great games with great online play and not inconvenience us with these ridiculous DRM protection schemes, then they would continue to be very successful. I never had a problem paying for Blizzard games like Diablo/Warcraft/Starcraft. The $50 cost was nothing to have a legitimate copy of a game that provided hundreds or thousands of hours of entertainment. In fact, nobody I knew even wanted a pirated copy of those games.

By GodisanAtheist on 3/24/2010 6:32:22 PM , Rating: 2
All the same, the logic that if someone was never going to buy it they should get it for free is equally tortured. Of course they weren't going to buy it THEY CAN GET IT FOR FREE! If someone is handing out free Lemon-aid every bit as good as the stuff you have to pay 5 bucks a cup for... would you ever spend the $5? Would anyone?

I remember seeing this round table debate about what to do about Movie or Television piracy and one quote that always stuck out to me was "Its hard to build an economic model that's more tempting than free."

"If they're going to pirate somebody, we want it to be us rather than somebody else." -- Microsoft Business Group President Jeff Raikes

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