MSN reports that video games are likely to outsell sales of music, at least in the United States next year.

The report said that key growth sectors will include “online and wireless games, new-generation consoles and the burgeoning in-game advertising business.” That’s music to my ears (pardon the pun) since we here at Level Up are fast-tracking our advocacy on promoting our advergaming services.

The predictions are all part of the eighth annual edition of PwC’s “Global Entertainment and Media Outlook” report.

To quote; “By 2011, the worldwide gaming market will be worth $48.9 billion at a compound annual growth rate of 9.1% during the five-year period, with gains slowing every year because of the maturation of the current generation of consoles, according to the report. The compound gains handily exceed the 6.4% advance that PwC foresees for the overall entertainment economy during the period.”

“Video gaming is one of the most exciting stories in terms of pure growth numbers,” said Marcel Fenez, PwC’s global managing partner for its entertainment and media practice.

And no, that’s not an MMORPG boss! That’s Marlyn Manson in the photo above

More after one more click…

In-game advertising will be a key spark for U.S. gaming revenue, growing from an estimated $80 million last year to $950 million in 2011, according to PwC. But Fenez signaled that this estimate could prove conservative as “advertisers like to reach the younger males” that many games tend to attract.

He also said that the overall gaming audience continues to expand and become somewhat more female and older than in the past thanks to casual games and the arrival as games as an “important part of culture.”

Via MSN