Total videogame industry sales are expected to reach $16 billion in 2007, a 61 percent increase over 2004 sales of $9.9 billion, according to a report by Kagan Research. The company predicts the North American market will grow from $6.3 billion in 2004 sales to $8 billion in industry sales by 2008. Finally, 54 million U.S. households are predicted to own at least one console by 2010, while most will own both a fixed and a portable system.
"We believe Sony PS3 will be the strongest seller of next-generation videogame consoles," said Kagan analyst Irina Mulvey. "However, Microsoft's Xbox 360 will narrow the gap with Sony to come within 28 percent of the PS3 installed base -- selling almost twice as many next-gen consoles as Nintendo Revolution by 2010."