According to the report, PC gaming was a $10.7 billion industry in 2007, with sales from digital distribution nearing $2 billion and in-game and web advertising bringing in $800 million. Online PC gaming brought in $4.8 billion, almost double that of retail PC sales.

"Our analysis clearly shows incredible growth in online PC gaming, proof that this industry is far stronger than anyone has reported," explained Stude. "Today's consumers shop where they live--online."

Overall, the study found that growth was driven by online revenue from Asia, which accounted for almost half of the total worldwide sales, and noted that revenues are expected to grow as developers embrace online distribution and other opportunities.

"By pioneering new business models, the PC has quietly remained the single leading platform for games, not only in terms of consumer usage, but revenue generation," commented DFC Intelligence analyst David Cole. "The most fascinating thing about PC gaming is its ability to attract such a diverse audience, both demographically and geographically."