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November 19, 2008 7:40 AM PST

PC game hardware worth $34 billion by 2012

by Dave Rosenberg
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The PC gaming market is much larger than the console market, and it is growing at a torrid pace, according to new research.

According to a report from Jon Peddie Research, "the total market value for PC gaming hardware in 2008 was just over $20 billion, and that will grow to over $34 billion by 2012--and those systems pull in an additional $6 billion in software and services sales."

Most PCs can play games, but for the serious gamer, the equipment matters. PC gaming hardware includes things like specialized keyboards and mice, as well as sophisticated graphics cards and hard-core gaming machines from vendors such as Alienware, a division of Dell.

This specialized hardware allows gamers to customize their setups--ranging from enhancing graphic processing to mapping keys on the keyboard to making game play more efficient.

Don't let the retail numbers fool you," said Ted Pollak, co-author of the report series. "Enthusiast PC gamers often latch on to one or two games that offer multiplayer options and stick to these titles for years. Hardware is where they spend the big bucks. The retail numbers don't capture the casual and digitally distributed games, either. Retail software figures are not an accurate barometer for the health of the PC gaming industry."

Those are some pretty amazing numbers--so large, in fact, that it makes me think that there are many opportunities for new companies to address the market.

Link: Gaming PC Market Bigger Than Thought Says Jon Peddie Research

Dave Rosenberg dishes up "Software, Interrupted" with nearly 15 years of technology and marketing experience that spans from Bell Labs to multiple start-up IPOs to open-source enterprise software companies. He is co-founder of MuleSource and currently serves as the general manager of Hardy Way. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can contact Dave via e-mail at softwareinterrupted@gmail.com or follow him on Twitter @daveofdoom.
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by sythara November 19, 2008 9:46 AM PST
PC gaming hardware includes things like specialized keyboards and mice, as well as sophisticated graphics cards and hardcore gaming machines from vendors like Alienware, a division of Dell.

yeah, $5.99 keyboard and parts build from newegg. Alienware is the biggest rip off ever to exist.
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by sanenazok November 19, 2008 11:06 AM PST
True some of the time. I bought a higher end Dell after realizing that it was only $75 more expensive than getting the parts on my own. There's no way 5+ hours of my life are worth it.
by ducttape36 November 19, 2008 11:22 AM PST
its mainly the graphics cards that get expensive. hardcore gamers can spend 400-500 dollars for a top of the line graphics card.

i wonder how much pc gaming piracy takes away from the market sales. i suspect thats the reason a lot of game studios prefer consoles- its hard to pirate them that way. I think the only pc games that make any real money are ones that require online multiplayer and/or subscriptions like wow.
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by joshbroton December 9, 2008 4:36 PM PST
The pirate download numbers are huge, but I think a large amount of downloads are "trials" to make sure your $50 is well spent.
by tipoo_ November 19, 2008 3:19 PM PST
and yet console fanboys keep insisting that PC gaming is dying...sigh.
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by ferretboy88 November 19, 2008 3:27 PM PST
I am doing my part. I just ordered a quad core intel with new motherboard and power supply. Fallout 3 and Crysis needed new hardware.
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About Software, Interrupted

In "Software, Interrupted," Dave Rosenberg discusses disruption in the software market, as well as the products and services that keep business technology norms in perpetual flux.

With nearly 15 years of technology and marketing experience spanning from Bell Labs to multiple start-up IPOs, Dave co-founded open-source software company MuleSource and now serves as general manager of Hardy Way. He also happens to be a U.S. patent holder and a workaholic. Technology is his best friend and mortal enemy.

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