San Francisco, Calif. — Consumer spending on video game software and hardware is expected to hit $74 billion this year, research group Gartner predicted Tuesday.

Up 10.4 percent from $67 billion spent last year, Gartner estimates that consumers across the world will spend $44.7 billion on game software and $18 billion on game hardware, while online gaming revenue will reach $11.9 billion this year.

According to Gartner, the online gaming market will see a 27 percent compound annual growth rate in revenue to $28.2 billion by 2015. In the same time period, it predicts hardware to climb up to $27.4 billion and software revenue to reach $56.5 billion the same year. The company estimates that consumers will spend over $112 billion on the gaming industry by 2015.

“This large market size means that many consumers embrace gaming as a core piece of their entertainment budget and will continue to play as long as game publishers deliver compelling and fun games,” said Fabrizio Biscotti, research director at Gartner.

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