May 16 — The PlayStation 3 was unveiled by Sony during a pre-E3 press conferece, at 21:25 GMT. At the same time, the press release[1] was released through the Japanese PlayStation website.
June 1 — IBM held the first virtual video game on-demand conference in which game developers and manufacturers were able to come together to discuss issues with online games, including management and distribution.
July - IEMA (Interactive Entertainment Merchants Association) hosts 6th annual Executive Summit.
January 12 — Video game companies and players worldwide donate money to the UNICEF South Asian Tsunami Relief Fund for rescue and reconstruction efforts upon the South Asian tsunami disaster. Electronic Arts pledges to donate $250,000 to the UNICEF South Asian Tsunami Relief Fund. CCP, the publisher of EVE Online, establishes a fund that video game players can contribute to.
January 17 — Electronic Arts and ESPN announced a 15-year partnership that would give EA access to ESPN's broadcast, print and online content.
February — Troika Games defunct after being unable to get contracts for development work.
March 2 — The Entertainment Software Rating Board or ESRB added the rating of "E10+" to its ratings system. E10+ was created in order to divide E ratings for younger and older children.
April 2 — Keiji Inafune, the creator of Mega Man series, was promoted from corporate officer to senior corporate officer.
May — Buena Vista Games announces that it had bought the rights to the Turok video game franchise and will be publishing new games. The rights were originally held by bankrupt Acclaim Entertainment.
July 20 — After coming under heavy fire from many politicians, most notably Hillary Clinton, the Entertainment Software Rating Board re-rated Rockstar Games' Grand Theft Auto: San Andreas Adults Only 18+ (AO) due to the sexually explicit minigame mod "Hot Coffee". Additionally, Rockstar Games ceased production of the game and has announced plans to offer a new version of the game that can't be affected by the mod, and plans to patch the PC version.
August 8— Abandon Mobile announces its formation through a partnership between Abandon Entertainment, Inc. and GF Capital Management and Advisors, LLC.
November 30 — Sony Computer Entertainment announce that PlayStation 2 breaks a record: the fastest console to reach cumulative shipment of 100 million units, beating the previous record holder, the PlayStation, by three years and nine months. The PS platform has until the present year the biggest sales of all times of video games history, with 120 million consoles shipped.
In 2005, the total U.S. sales of video game hardware, software and accessories rose 6% over 2004 to $10.5 billion USD ($9.9 billion, 2004) breaking 2002's $10.3 billion record for the industry.
The increase is largely due to the portable game market which counterbalanced sluggish console game sales. Delays, hardware shortages, and anticipation of next-generation video game consoles have been cited as reasoning for slow sales for both console games and console hardware. Console games and hardware dropped by 12% and 3% respectively.
The portable market of the video game industry rose to $1.4 billion, the second time sales have broke the $1 billion mark in the industry's history. Mostly due to the release of the Nintendo DS and the Sony PSP in North America, sales for portable hardware rose 96% over 2004. Although the release of the Nintendo DS and the Sony PSP aided in spurring growth in the portable market, the Game Boy Advance still represented 62% total portable software units sold and 52% of total portable software dollar sales. [2]
Computer games continued its trend and declined by 14%, dropping from $1.1 billion in 2004 to $953 million. Although sales did decrease, NPD claims that playing games on the PC is actually increasing through a variety of different mediums including online websites and MMO subscriptions. [3]