Ron Curry, CEO of the iGEA, said: "As Australians consume video games across a broader range of mediums, it’s becoming harder to get a true indication of the value of the industry via a single source."
"While there is a decline in traditional sales, the gaming industry as a whole remains buoyant as people shift towards a ‘hybrid’ model in their consumption of interactive entertainment.”
Analyst firm Telsyte projects AUD$730 million in digital downloads and subscription services in 2013 alone.
Senior Research Manager Sam Yip said: "The growth in digital gaming is driven by mobile app gaming on smartphones and tablets, which is offsetting the decline in physical purchases and even pushing the overall games market into growth”
Curry added: "Apart from the increasing move towards digital content, the figures released by NPD show a drop in physical sales due in part to the ageing gaming consoles, a trend we saw back in 2005 at the end of the last console cycle."
The rough tracking of an overall stagnation or decline in 2011-2012 is in line with PriceWaterhouseCoopers' Media Outlook report, which suggested that in spite of the impending dip, the industry was expected to show a compounded annual growth rate of 7.4% up to 2015.
Furthermore, the recent investment by the federal government of AUD$20 million into the games development sector shows a confidence on its part of the health of the industry as a whole.
Antony Reed, CEO of the GDAA, said: "The funds represent an investment in an industry that has continued to develop in Australia, with local game developers continuing to show their capabilities around the world."
"The continued success of Firemonkeys, 2K Games Australia, Halfbrick and Kumobius are clear examples of the strength of the industry here in Australia. The investment by the Government will be used to further secure jobs, encourage innovation and creativity, and promotes investment in Australian talent."