In 2002 in the UK, more money was spent on games than on renting videos or going to the cinema.
Not surprising when you think a million copies of GTA: Vice City flew out of the shops in just eight weeks up to Christmas.
One downside is that developing games has got really expensive because each has to be so much better than the last.
So smaller game studios might struggle and it's only the big ones which end up making all the games.