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Video-game market semiconductor opportunities to hit $12B in 2013
While much of the circuitry is still proprietary, significant design wins from the merchant market are proof that the OEMs are opening up more to outside sources for chip technology, Databeans reports.
By Suzanne Deffree, Managing Editor, News -- Electronic News, 8/21/2008
The served available market for semiconductors in the video-game market will grow from $7.5 billion in 2008 to more than $12 billion by 2013, according to Databeans.
The research company today made its estimates stating that major product categories include ARM-based processors, flash memory, battery management, and analog wireless transceivers.
Databeans specifically that noted Nintendo has recorded “truly remarkable” gaming hardware sales over the past few years. The Japan-based video game giant saw total shipments for the Wii hit 18.6 million units for the fiscal year ended in March, and more than 5 million units were shipped in the latest quarter, according to the Nevada-based research company.
And while the Wii often grabs headlines, Nintendo’s portable game unit, the Nintendo DS, has sold more than 77 million units worldwide since it was introduced in 2004 and has become the most popular handheld video game platform of all time, Databeans said.
Indeed, according to Databeans the DS has continued to outsell the Sony PSP by more than two to one, despite Sony’s PSP telecommunications ability, the capacity to play special DVD movies, and its upcoming GPS function.
Beyond hardware sales, Databeans noted motion sensors and touch screen controllers are also growing significantly in all segments for video games, adding fuel to the consumption of semiconductors. STMicroelectronics and Analog Devices Inc both provide MEMS technology to the Wii controllers.
“The gaming phenomenon has driven innovation which now extends beyond the console itself to companion electronics, such as handhelds, wireless nunchucks, controllers, and wireless guitars. Along with the consoles, the peripherals, handhelds, and displays, such as LCD TVs, the bill of materials value is growing, providing more opportunity for the merchant semiconductor suppliers,” Databeans said in its report today. “While much of the circuitry is still proprietary, significant design wins from the merchant market are proof that the OEMs are opening up more to outside sources for chip technology.”
