Western games market stagnating, warns analyst

Chinese market seeing growth thanks to focus on PC and mobile

Western games market stagnating, warns analyst

Speaking at the Edinburgh Interactive Conference, BMO Capital Markets's Edward Williams has warned the western games industry that "...profitability hasn't grown at all in the past few years and that's before we take 2009 into account."

The factors behind this stagnation, said Williams, are the reliance on traditional retail and distribution methods, hardware fragmentation and ever-escalating development costs.

He went on to compare the western industry with that of China, which has a primary focus on PC and mobile and is "still seeing improved profit". These Asian developers therefore make further savings by not having to pay royalties to console manufacturers.

Speaking to the BBC, president of EA Sports Peter Moore agreed that China's carefully targeted games industry is prospering though PC and mobile titles, but insisted the west is rapidly changing its approach to meet the demands of a new breed of digital shopper.

"In Europe we are going to see more content that's delivered electronically, be that through Steam, Xbox Live or whatever."