DFC predicts bright future for games, dim one for Xbox 360

Another day, another extremelylong-rangeanalysis of the video game market's future. This time the prediction comes from DFC Intelligence through a press release stating the total worldwide market for video games could grow to a staggering $47 billion by 2009 (from $33 billion in 2006). DFC foresees the strongest growth coming from the PC market (driven by online game revenue) and the portable market (driven by the Nintendo DS, which "could eventually become the best selling game system ever in five years" according to DFC's David Cole).

That's nice about the industry growth and all, but the real red meat for the fanboys comes later in the release, when DFC reveals they've lowered their forecast for the performance of the Xbox 360. The currently-hot system "will need to build a strong base outside North America to avoid being in a fairly distant third," Cole said in a statement sure to rile up the Microsoft Defense Forces. As for the battle for first, Cole thinks the Wii will dominate through 2008 with the PS3 coming on strong in 2009, possibly leading to an odd long-term situation where Nintendo has sold more hardware but Sony generates more software revenue.

We at Joystiq think this all this prognosticating is a bit shortsighted. After all, it doesn't take into account how the surging interest in the Dreamcast will lead to Sega's triumphant return to the hardware market and eventual domination of the same by 2023. Hey, if analysts can make wild, long-term predictions, then so can we!