Analyst Predicts Bright Future for PC Gaming Hardware

Analyst Predicts Bright Future for PC Gaming Hardware

Jon Peddie Research has released a report pegging the total value of the PC gaming hardware market at some $27 billion in 2010, up from $20 billion in 2008. Currently, 'enthusiast' class hardware accounts for ~46 percent of that amount. JPR predicts that this will fall to 35 percent in 2013, but because that shift will occur in a growing industry, the total dollar value of hardware sales will grow from $9.5 billion in 2009 to $12.5 billion in 2013.

Ted Pollak, Video Game Industry Analyst for JPR, cites a number of influences for this phenomenon. "PC hardware has caught up to most of the software and people are able to play computationally intensive games on Performance level systems. Performance systems now even support high resolution for all but the most demanding simulations and FPS's. The frequency of Direct X updates is also driving some people toward mid-range GPU's. Some gamers are buying Performance GPUs at a higher refresh rate to engage the latest Direct X version, instead of a longer term investment for Enthusiast GPU's." (We're assuming that when Pollak refers to 'refresh rate', he's referring to the rate at which gamers replace their video card rather than the actual refresh rates the card can handle.)


And a chicken in every pot!

According to Jon Peddie himself, this market growth is driven by the appearance of hardware that couldn't be purchased for any price a few years ago. "gamers are ordering, building, and modding their rigs with components that just a few years ago were simply not available with any economy of scale. SSD's, water cooling, gaming mice and keyboards and other components have come to the Performance class and gamers are starting to snap them up. "

We're not willing to link the current availability of new technology as a special/unique causal factor in greater enthusiast expenditures—at least not across the board. It's a safe bet that SSDs will grow rapidly, but SSDs themselves appeal to everyone from office users to gamers; they may currently carry enthusiast-level prices, but their benefits are universal.

AMD has Eyefinity, NVIDIA has 3D, but neither company has demonstrated that their respective display technology is anything more than a niche product. Display manufacturers of all stripes want consumers to demand 3D; the mass market has yet to express an opinion. As far as computer monitors are concerned, AMD may have a bit of an advantage here; there are far more Eyefinity-capable displays on the market than there are 3D LCDs. Buyers who depend on a panel's color reproduction or clarity also might not be willing to drop money on a separate 3D display that can't match their current panel in those areas.

We'd like to put the question to you readers. Of all the potential "new" areas you might invest in, including SSDs, DX11, Eyefinity, 3D, water cooling, SLI/Crossfire, or high-end gaming peripherals, what are your top three—and what technologies do you not care about?
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This is proof positive the PC is not dead. I remember reading how the PC was going to be phased out because of laptops and netbooks ect ect. I thought then no way the PC will die out like that, as a powerful computer or RIG as we call them has no equal. The PC is where it's at you just have to get the right one built or configured for you. Once you experience a game on the PC and then see that same game on a PS3 or 360 it's a joke IMO. As far as what new hardware I am interested in 1) DX11 video card 2) SSD and 3) last but not least, a core i7 with a X58 motherboard. I care about anything hardware related that increases the user experience on a PC.

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It's a bit hard for the PC to die when people will always have them to work/browse the net etc.

Even though PC game sales aren't as high as consoles they're still profitable and the two platforms will only merge more and more in the future.

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My top three in order of preference would be SSDs, Water cooling and SLI/Crossfire. I think my bias toward the hardware components has to do with always wanting to build a better, faster and if possible more silent system. I'm a PC hobbyist first and gamer second. The software related improvements of DX11, Eyefinity and 3D don't appeal to me as much.

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I don't find eyefinity or 3D appealing either but it doesn't hurt to get it Smile lol.

pc will never end as they can do things no other system can. Gaming consoles can do only gaming while a PC can do that and so much more. I will always have a pc even if everyone decides to not have one :P.

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Me too Inspector.

I just find it surprising that people have money to spend on hardware during the recession.

Ironically looks like hardware is recession-proof.

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SSDs,

Water cooling

Peripherals

In that order.

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This is great news, but I don't think it is only because of gamers. I had a customer who owns a rather small company. His company assembles systems that are bought up by military companies. He showed me a few pics on his iPhone and one of the systems was used to control 2 UAVs. He claims that the U.S. military has decided to buy consumer electronics instead of spending all that time and money doing what companies like Nvida already has done.

 

Whether this is true, I'm not sure. I don't see why not though.

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I think the introduction of mainstream water cooling is not a bad idea. I, personally, have never used water cooling because of its complexity and cost. If a manufacturer can come with a cost-friendly and user-friendly method of producing water cooling to the mainstream, I would hop in on board because my P4 prescott micro-ATX is on life support that desperately needs its plugged to be pulled out.

 

I can't say I am a fan of DX11 since it is nothing more than an upgrade. Eyefinity and 3D are gimmicks at best. SLI/Crossfire needs to find way to reduce the massive size it is taking on cases because it is just ridiculously big. SSDs reminds me of the debate between LCDs and plasma. My judgment is up in the air on that until a new competitor arrives that poses a threat against SSDs. Until then, I'll stick with HDDs.

 

High-end gaming peripherals? Those are for fanatics...like The World of Warcraft Wireless Headset by Creative Labs.

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I consider mainstream water cooling to be the pre-done ones like the Corsair H50. There is really no need to check for leaks and you don't have to fill it or bleed the bubbles out. Everything is already connected and done. Only thing to do is install it like a normal heatsink.

 

I don't buy "high-end" gaming peripherals like Fatality branded stuff or the WoW Wireless headset you mentioned. But I am a victim to other stuff. I love my Logitech G7 and I would happily pay for another one when my current one ever breaks. It is just so comfortable over those generic $10-$20 mice I see everywhere.

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The technology is there. Right now we can all have "ONE SYSTEM"!

The perspective companies really do not want everyone to have only one units. Yes the PS3 does everything. The problem is with the software and how much control Sony can exert over its minions, XBox as well. Those GPU's in the consoles are very impressive, and we have yet to see them operate at even a fraction of their full potential.

Right now we are seeing more and more people turning to create a singular solution for all their entertainment needs. Much like the Origin Eon systems. Those things can replace all your Home Theatre components minus the receiver and screen. The only problem is, in a few years they might be outdated.

That is where the love affair with the Desktop PC comes into play. At least there you can upgrade to your hearts content with the changing weather of technology. It is exciting, because we are getting to the point where we will have one box to rule them all. Even if we have to set up a separate room to house the home system. In essence we can have a HAL900 in the closet. out of site yet controlling everything from the house lighting/temperature, to the radios/TV's and all manner of gaming that we want!

The main problem here is companies like Microsoft don't want you to just build one system with one OS and be happy. Just like with the introduction of the Xbox, which is basically a PC that is a stand alone gamer. Which is now reversing to be able to do everything a PC does. They want everyone to buy a multitude of new products every year with only a slight improvement by making you think you are getting the latest and greatest.

If everyone is so concerned about being Green. then why aren't they standing up where it really counts. I would love for a company like Origin to lead the way. If they sold us a One System, then provided services (even subscription) like a recycling and upgrade program. I am sure many people would turn them into the next Sony AMD Intel! Instead all the companies want people to buy a new IPhone every six months, and toss that old one because a guy in a turtleneck tells you to!

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Whether you are changing the box or just parts in it, you are still changing things out with things that you bought. So in essence, the guy next door buying up the new iPhone every six months isn't too different from the guy buying a new video card every 6 months - 1 year.

I think that if ever we get to a point where there is a "one system," then it would be along the lines of an Xbox 360 or Playstation 3. You just plug it in and you are set. There is no need to deal with driver issues or anything like that. It is just plain simple. Simple is good for the majority. To keep it simple, the easy upgrade is to just buy a new unit like the next generation Microsoft or Sony console.

Not sure what being green has anything to do with this topic... But here is a nice link that helps you recycle your old electronics.

http://www.epa.gov/osw/conserve/materials/ecycling/donate.htm

Either that or give it to your friend. I'm sure a few of you out there still has a friend who is still sitting on an old card or a really old laptop that can't play any games. Any part will be an upgrade for them.

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