Kagan Forecasts Microsoft's Xbox 360 To Sell 11 Mil. Consoles by 2007

Business Wire, June 21, 2005

MONTEREY, Calif. -- As New Consoles Boost Spending on Software and Accessories, the Videogame Industry is Expected to Generate $16 Bil. in 2007, a 61% Lift Over 2004 Sales of $9.9 Bil.

A new report from Kagan Research, Future of Video Games 2005, examines the impact of next-gen consoles on the growth of the industry and provides insightful assessments of potential market growth and detailed revenue projections for hardware and software sales from 2005 to 2010. Exclusive data provided by Future of Video Games 2005 includes:

--Total videogame industry sales will reach $16 bil. in 2007, a 61% increase over 2004 sales of $9.9 bil.

--U.S. software sales will pick up incrementally, reaching the $8 bil. mark in 2008 -- a 30% increase over 2004 industry sales of $6.3 bil.

--54 mil. U.S. households will own at least one console by 2010, and most will own both a fixed and a portable system.

Future of Video Games 2005 presents the first detailed forecasts of unit sales through 2010 for each of the major videogame platforms. According to Kagan analyst Irina Mulvey, "We believe Sony PS3 will be the strongest seller of next-generation videogame consoles. However, Microsoft's Xbox 360 will narrow the gap with Sony to come within 28% of the PS3 installed base -- selling almost twice as many next-gen consoles as Nintendo Revolution by 2010."

Highlights include:

--Comprehensive projections by console through 2010, including units sold, software titles, software $ sales and software spend per console household.

--Profiles and up-to-date financial information on videogame software and hardware companies.

--Information on upcoming console releases and their projected performance in the marketplace.

--Projected hardware sales, software sales, platform-by-platform analysis.

For Table of Contents and more information on Future of Video Games 2005 visit www.kagan.com.

About Kagan Research, LLC.

Kagan Research consulting and publishing services offer exclusive financial data and analysis, relevant market advisories, accurate 5- to 10-year projections and other actionable information on cable and DBS, broadcast television and radio, movies, entertainment and sports, digital, wireless and Internet technologies and media finance and law.