Table of Contents
Introduction And Abbreviations
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- Introduction
- Other relevant reports
- Definition
- Abbreviations and terms
- Terms
Executive Summary
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- A growing, cyclical market
- The games are the real key to the market, but new consoles will provide another cyclical boost in 2005-2006
- Three leading manufacturers all with reasons for optimism
- Big budgets and big changes for advertising and promotion of games
- Electronics stores and specialty retailers lead in new sales growth among retailers
- Consumer survey shows that kids and teens are fully engaged—making young adults and older adults the new key market
- Future sales growth remains both strong and cyclical
Market Drivers
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- Age influences
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- Figure 1: U.S. population projections, 2000-2009
- Kids’ ownership of video games
- Fastest-growing market is aged 25-34
- “Gray Gamers”
- Females not to be discounted as gamers
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- Figure 2: Hours spent playing video games by college-age men and women, 2003
- Hispanics spending more on entertainment
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- Figure 3: Ownership of cameras and video game hardware, by Hispanic origin, 2002 and 2003
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- Figure 4: U.S. population projections, by race/ethnicity, 2000-2009
- Much competition for leisure time activity
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- Figure 5: Consumer leisure time activities, 1999-2003
- Game consoles competing with computer/Internet games…
- ...and converging with them
- Multiple game console ownership more common
- Falling hardware prices a main driver in 2003-2004
- Industry backlash
- Are video games influencing behavior?
- Protests against game violence ongoing, but unlikely to slow the overall market even if successful
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- Figure 6: ESRB ratings, 2004
- Availability of games drives console purchases
- Video games a key player in popular culture
Market Size & Trends
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- Figure 7: Sales of video game consoles and games, 1998-2003
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- Graph 1: Sales of video game consoles and games, current and constant prices, 1998-2003
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Market Segmentation
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- Overview
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- Figure 8: Sales of video game consoles and games, segmented by product type, 2001 & 2003
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- Graph 2: Sales of video game consoles and games, segmented by product type, 1998-2003
- Console software
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- Figure 9: Sales of video game console software, 1998-2003
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- Figure 10: Sales of video game titles ranked by total U.S. units, 2003
- Console hardware
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- Figure 11: Sales of video game console hardware, 1998-2003
- Accessories
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- Figure 12: Sales of video game console accessories, 1998-2003
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- Figure 13: Top selling video game console accessories, 2003
- Portable software
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- Figure 14: Sales of portable video software, 1998-2003
- Portable hardware
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- Figure 15: Sales of portable hardware, 1998-2003
- Online-capable game software
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- Figure 16: Unit sales of online-capable video game titles for Sony, Microsoft, and Nintendo combined, 2002-2003
Supply Structure
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- Overview
- Sales by manufacturer
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- Figure 17: Sales of video game consoles (only), by manufacturer, 2001 & 2003
- Major companies and brands
- Console manufacturers
- Nintendo of America, Inc.
- Sony Computer Entertainment America, Inc.
- Microsoft Corporation
- Software developers
- Acclaim Entertainment, Inc.
- Activision, Inc.
- Capcom, Inc.
- Electronic Arts, Inc.
- Infogrames Entertainment S.A.
- LucasArts Entertainment Company, LLC
- Midway Games, Inc.
- Sega of America, Inc.
- Take-Two Interactive
- THQ, Inc.
- Vivendi Universal Games, Inc.
Advertising & Promotion
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- Nintendo
- Sony
- Microsoft
Retail Distribution
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- Overview
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- Figure 18: Sales of video game consoles and games, by channel, 2001 & 2003
- Mass merchandisers and club stores
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- Figure 19: Top mass merchandiser operating statistics, latest fiscal year-end
- Figure 20: Percentage change from latest fiscal year-end versus year prior
- Toy stores and specialty retailers
- Toy stores
- Specialty retailers
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- Figure 21: Top toy retailer statistics, latest fiscal year-end
- Figure 22: Percentage change from latest fiscal year-end versus year prior
- Electronics stores
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- Figure 23: Top electronics stores’ operating statistics, latest fiscal year-end
- Figure 24: Percentage change from latest fiscal year-end versus year prior
- Online stores
The Consumer
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- Introduction
- Ownership of video game consoles
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- Figure 25: Game console ownership, June 2004
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- Figure 26: Game console ownership, by age, May 2004
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- Figure 27: Game console ownership, by presence of children, May 2004
- Type of game console owned
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- Figure 28: Type of game consoles owned, June 2004
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- Figure 29: Type of game consoles owned, by educational attainment, May 2004
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- Figure 30: Type of game consoles owned, by presence of children, May 2004
- Age of primary and secondary game console players
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- Figure 31: Age of players for whom latest console was bought, June 2004
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- Figure 32: Estimated number of game console players, by age, 2004-2009
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- Figure 33: Age of player for whom latest console was bought, by presence of children, May 2004
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- Figure 34: Age of player for whom latest console was bought, by urban/rural status, May 2004
- Most recently purchased type of game console
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- Figure 35: Most recently purchased game console, June 2004
- Place of purchase of game console
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- Figure 36: Place of purchase of most recently bought game console, June 2004
- Rental and later purchase of rented games for game consoles
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- Figure 37: Rental and later purchase of games for game consoles, June 2004
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- Figure 38: Rental and later purchase of games for game consoles, by presence of children, May 2004
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- Figure 39: Rental and later purchase of games for game consoles, by marital status, May 2004
- Kids’ and teens’ ownership of video game consoles and handheld video games
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- Figure 40: Game console ownership profile of kids and teens, January-September 2003
- Frequency of video game play for kids and teens
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- Figure 41: Frequency of vide game play for kids and teens, January-September 2003
- Summary
Future & Forecast
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- FUTURE TRENDS
- As the market continues to grow, stiffer competition is inevitable
- Online gaming is picking up speed
- New technologies…
- …but still a disposable product…
- …until further morphing into multi-capable, upgrade-able units
- MARKET FORECAST
- Video game consoles and games
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- Figure 42: Forecast of U.S. sales of video game consoles and games, at current and constant prices, 2003-2008
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- Graph 3: U.S. sales of video game consoles and games, 1998-2003, and forecast, 2004-2008
- Video game titles (console and portable software combined)
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- Figure 43: Forecast of U.S. sales of games played on video game consoles and handhelds, at current and constant prices, 2003-2008
- Video game console and handheld hardware
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- Figure 44: Forecast of U.S. sales of video game consoles and handhelds, at current and constant prices, 2003-2008
- Video game accessories
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- Figure 45: Forecast of U.S. sales of video game accessories, at current and constant prices, 2003-2008
- Forecast factors
Appendix: Trade Associations
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