Analysts: games industry to overtake music industry

In its annual report covering various entertainment industries, consulting group PricewaterhouseCoopers predicts the video game spending to overtake music spending as early as this year.

The report, covering 2007 through 2011, predicts the video game industry will grow globally at an annual rate of 9.1 percent, from $37.5 billion this year to $48.9 billion in 2011. While the analysis speaks well for the games industry, it also highlights the decline in the music industry. As Ars Technica points out, should EMI's sales from their DRM-free iTunes catalog outpaces their losses in CD sales, the rest of the industry could follow suit.

In-game advertising will grow at an enormous rate, according to the report, predicting a jump from $80 million in 2006 to $950 million in 2011.