MARKET SIZE AND GROWTH
Considering both software and hardware, the market created by the demand for computer and video games totaled at
least $10.5 billion in 2000 (see Table 2, total sales). The total market consisted of game software sales of $7.8 billion in
producer prices, software and hardware trade mar-gins of $2.7 billion, and hardware transportation costs of $20
million. Growth in that market is robust. Between 1997 and 2000, the software publishing industry’s game software
sales grew 15 percent per year (see Figure 2). In contrast, the U.S. economy grew only 6 percent per year during the
same period. Moreover, game software sales grew at a faster rate than other major American industries including:
motion picture production, distribution and allied services; amusement parks; consumer electronics manufacturing;
and physical fitness facilities
Considering both software and hardware, the market created by the demand for computer and video games totaled at
least $10.5 billion in 2000 (see Table 2, total sales). The total market consisted of game software sales of $7.8 billion in
producer prices, software and hardware trade mar-gins of $2.7 billion, and hardware transportation costs of $20
million. Growth in that market is robust. Between 1997 and 2000, the software publishing industry’s game software
sales grew 15 percent per year (see Figure 2). In contrast, the U.S. economy grew only 6 percent per year during the
same period. Moreover, game software sales grew at a faster rate than other major American industries including:
motion picture production, distribution and allied services; amusement parks; consumer electronics manufacturing;
and physical fitness facilities