PC software accounts for 27 per cent of the $4.4 billion European games market and is growing at around 18 per cent, according to Datamonitor's report launched at the European Computer Trade Show in London this week.
The boom in dedicated consoles, such as Sony's Playstation and Nintendo's N64, expanded the whole games market through 1996 and 1997, but PC software is set to take an ever-growing share, the report predicts, with PC games software hitting $2.5 billion of revenue in Europe by 2002.
There will be over 27 million PCs installed in households across Europe by the end of the year, the report predicts, although there is no indication of how many of these will be able to run Windows 95 and other modern software.
But the increasing dominance of the PC will fuel further growth in games software as developers see it as an ever broadening market for their products.
The speed at which the PC evolves will inhibit some consumers from buying, fearing rapid obsolescence, the report warns. But this is balanced by the quality of graphics available from the latest processors and 3D add-ons and the harmonisation of APIs under Windows' strong dominance of the PC.
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