The PC gaming industry pulled in $10.7 billion in 2007, with only 30 percent of that coming from retail sales, the president of the PC Gaming Alliance said today. Speaking at the Games Convention Developer's Conference in Leipzig, Rand Stude said that online PC gaming was the top revenue earner in 2007 for PCs, pulling in $4.8 billion, nearly double the worldwide retail sales for PC games. Digital distribution sales approached $2 billion, while advertising revenues from websites, portals, and in-game ads accounted for $800 million. "Our analysis clearly shows incredible growth in online PC gaming, proof that this industry is far stronger than anyone has reported," said Stude. "Today's consumers shop where they live - online." These numbers, I think, will be much more meaningful next year when we have something to compare them to. Hit the jump for the full release.PC Gaming Alliance Illuminates State of PC Gaming Worldwide with Release of Horizons Report Exclusive PCGA Study Shows PC Gaming a $10.7B Industry, Reveals Explosive Online Growth LEIPZIG, Germany—(BUSINESS WIRE)—The PC Gaming Alliance (PCGA) today unveiled the key findings from its first "Horizons" Report, an exclusive research study of the PC gaming industry worldwide. Speaking at the Games Convention Developer's Conference in Leipzig, PCGA president Randy Stude announced that PC gaming was a $10.7 billion industry during the year of 2007, with retail sales accounting for just 30 percent of total revenues. According to the report, growth was largely driven by online revenues from Asia, the world's largest market, which is approaching half of total worldwide sales. Online PC gaming revenue led the way in 2007 with $4.8 billion, nearly double the worldwide retail sales numbers for PC games. Digital distribution sales approached $2 billion, while advertising revenues from websites, portals, and in-game ads accounted for $800 million. Both are expected to grow substantially as major developers and publishers begin to adopt formal strategies to take advantage of new online opportunities. "Our analysis clearly shows incredible growth in online PC gaming, proof that this industry is far stronger than anyone has reported," said Stude. "Today's consumers shop where they live - online." According to DFC Intelligence, there is even more room for growth as the broadband market matures. "By pioneering new business models, the PC has quietly remained the single leading platform for games, not only in terms of consumer usage, but revenue generation," said David Cole, an analyst with DFC Intelligence. "The most fascinating thing about PC gaming is its ability to attract such a diverse audience, both demographically and geographically. The real key has been the rapid growth in penetration of broadband-connected PCs in all markets around the world. Broadband-connected PCs are the key driver of growth for PC gaming. DFC Intelligence estimated that by the end of 2007 less than one-third of households in the top 20 markets for games had a high-speed Internet connection. That clearly indicates that there is still plenty of growth to come. The initiatives of the PCGA will be a key enabler of growth as they will help the industry identify key trends and opportunities in this rapidly emerging market." Updated bi-annually, the full Horizons Report is available to all PCGA members. It encompasses sales from every region around the world, and from every part of the PC gaming industry compiled by the PCGA from internal resources through a third party. This includes retail, online gaming, digital distribution, and online advertising. Those interested in joining can find membership details and additional information about the PCGA and its role as the voice of the PC gaming industry at www.pcgamingalliance.org. Anyone interested in the state of the PC gaming industry will also be able to see Randy Stude present the key findings of the Horizons report during NVISION 08 in San Jose, Calif. on August 25 in the San Jose Hilton adjacent to the convention center at 3:30 p.m. in San Carlos rooms 1 & 2. More NVISION details can be found at www.nvision2008.com. About the PCGA The PC Gaming Alliance (PCGA) is a nonprofit corporation whose mission is to drive worldwide growth of PC gaming. With high-profile members such as Microsoft, Intel, AMD, NVIDIA, and Dell, the PCGA provides an open forum where companies can cooperate to develop and promote solutions that drive the PC gaming industry forward. The PCGA encourages the exchange of information and views to promote PC gaming, and shares promotional activity designed to grow the PC gaming industry.

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