Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Market cyclical and hit driven
- A handful of publishers control sales
- Console sales dominate, PC shifts to digital distribution
- GameStop beats Walmart when it comes to young adults
- Competition from online and casual gaming
- Spending big to earn big
- Each child worth about four adults
- Price sensitivity runs high
- Young men and teens excited about Kinect and Move
Inspire Insights
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- Trend: Advertainment
Insights and Opportunities
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- Lower-priced games
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- Figure 1: Price sensitivity, by age, July 2009-March 2010
- Three dimensions
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- Figure 2: Ownership and purchase intent for 3DTV, by gender, June-July 2010
- Senior opportunity in functional gaming, social gaming and beyond
Market Size and Forecast
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- Key points
- New ‘shiny disc’ sales challenged
- Console and PC video game software sales and forecast
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- Figure 3: North American * packaged video game sales and forecast, 2005-13
- Figure 4: North American * packaged video game sales and forecast, at inflation-adjusted prices*, 2005-13
Market Drivers
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- Installed base of consoles
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- Figure 5: Americas* unit sales of video game consoles and software (excluding handhelds), 2007-09
- Kinect for Xbox 360 and PS3 Move
- Franchises keep delivering
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- Figure 6: Selected best selling game franchises* in the Americas**, from launch through September 2010
- Holiday sales
- Word of mouth central to sales
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- Figure 7: Factors that influence video game purchase choices, by age, June-July 2010
Competitive Context
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- Increasing competition from other platforms threatens mainstream sales
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- Figure 8: Penetration of online, casual, console and mobile gaming, by age, June 2010
- Trending toward social and group play
- Digital distribution and play
Segment Performance
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- Key points
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- Figure 9: North American* packaged video game software sales, by segment, 2008 and 2010
Segment Performance—Console Games
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- Key points
- Kinect and Move should help sales rebound
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- Figure 10: North American* sales and forecast of packaged console games, at current prices, 2005-13
Segment Performance—Packaged PC Games
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- Key points
- Digital distribution takes hold
- Sales and forecast of packaged PC games
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- Figure 11: North American* sales of packaged PC games, at current prices, 2005-13
Leading Retailers
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- Key points
- GameStop leading retailer; Walmart working hard to overtake it
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- Figure 12: Retailer of most recently purchased game, by age, June-July 2010
- GameFly: Try before you buy
- Digital distribution—is video game retailing a dinosaur?
- Console games
- PC games
Leading Companies
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- Key points
- Customs can drive console sales; but many publishers go cross-platform
- Leaders account for the majority of sales
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- Figure 13: Americas* unit sales of packaged console games (including handheld games), by publisher, 2007 and 2009
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- Figure 14: Americas* unit sales of leading console titles, by publisher and platform, January-September, 2010
- PC games
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- Figure 15: Leading PC game publishers/titles*, 2009-10
Innovations and Innovators
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- Microsoft Kinect for Xbox 360
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- Figure 16: Kinect demo links, 2010
- EA works in social networking
- Activision’s Guitar Hero most popular console game page
- Activision’s Call of Duty: Black Ops in 3D
- Free to play/micro transactions
Marketing Strategies
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- Overview
- Traditional media spend
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- Figure 17: U.S. traditional media ad spending—video game brands, 2008-09
- TV ads
- Key points
- Focus on: Desire/Features
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- Figure 18: EA Games Rock Band—Tragic Kingdom album that put No Doubt on the map, television ad, May 2010
- Figure 19: THQ—The Last Airbender—Your Destiny Awaits, television ad, June 2010
- Ads akin to movie trailers
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- Figure 20: Microsoft Xbox 360—Halo Reach—The Battle Begins, television ad, July 2010
- Focus on: Humor, humor and more humor
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- Figure 21: EA Sports—Madden NFL 11—Man and Boy Put Dog on a Treadmill, television ad, June 2010
- Figure 22: Activision—Call of Duty Modern Warfare 2—Everyone’s Doing It, television ad, April 2010
- About 5% of all adults read video game magazines online or in print
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- Figure 23: Use of video game news sources, by gender, July 2009-March 2010
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- Figure 24: Use of video game news sources, by age, July 2009-March 2010
- Other marketing initiatives
Playing and Purchasing
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- Key points
- About one-third own/play games but only two in 10 buy them annually
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- Figure 25: Game playing/purchasing, by gender, age, household income, and presence of children, July 2009-March 2010
- Console gaming more common than packaged PC gaming
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- Figure 26: PC and console gaming in past three months, by gender, June-July 2010
- Usage among over-55s limited
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- Figure 27: PC and console gaming in past three months, by age, June-July 2010
- 18-24s differ from older adults in choice of platforms
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- Figure 28: Video game consoles owned or played, by age, July 2009-March 2010
Spend on Games and Accessories
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- Key points
- 18-34s show highest level of spend
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- Figure 29: Spend on games and accessories, by age, June-July 2010
- Income less of a driver than age
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- Figure 30: Spend on games and accessories, by household income, June-July 2010
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- Figure 31: Number of games bought or rented in last year, by household income, July 2009-March 2010
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- Figure 32: Number of games bought or rented in last year, by age, July 2009-March 2010
- Men spend more
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- Figure 33: Spend on games and accessories for consoles and PCs, by gender, June-July 2010
Genre
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- Key points
- Action/adventure most popular
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- Figure 34: Genres most often played in last six months, by gender, July 2009-March 2010
- Opportunity to expand market to 45+ with kids/family, sports genres
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- Figure 35: Genres most often played in last six months, by age, July 2009-March 2010
Attitudes and Motivations
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- Key points
- Updates and extensions account for only a minority of sales
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- Figure 36: Interest in buying updates and expansions, by age, June-July 2010
- Violence in games not an issue for vast majority
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- Figure 37: Interest in buying updates and expansions, by age, June-July 2010
- Men, 18-24s more likely to rate gaming above other media
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- Figure 38: Attitudes toward video games as a form of entertainment, by gender, July 2009-March 2010
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- Figure 39: Attitudes toward video games as a form of entertainment, by age, July 2009-March 2010
- Borrowing/renting most common among 18-24s
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- Figure 40: Price sensitivity, borrowing and renting, by age, July 2009-March 2010
- Games viral among friends
- Adults 25-34 buy games earlier
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- Figure 41: Video game adoption among friends, by age, June-July 2010
- Vast majority committed to learning complex games
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- Figure 42: Motivations for gaming, by age, June-July 2010
- Playing with kids sole motivation for only a limited minority
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- Figure 43: Motivations for gaming, by age, June-July 2010
- Two thirds of console gamers describe themselves as “casual” gamers
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- Figure 44: Hardcore vs. casual console gamers, by gender, June-July 2010
- Minority use consoles to watch videos, browse internet
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- Figure 45: Non-traditional uses for gaming consoles, by gender, June-July 2010
In-Game Ads
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- 25-34s most likely to have seen in-game ads
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- Figure 46: Reach of in-game product placement, by age, June-July 2010
Purchase Intent for Consoles
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- Key points
- Consoles part of consumers’ purchasing plans
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- Figure 47: Wii, PS3, and Xbox purchase intent, as a gift or for oneself, June-July 2010
- Women, over-55s continue to buy in to Wii
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- Figure 48: Wii, PS3, and Xbox purchase intent, by gender, age, and household income, June-July 2010
- Plans to “gift” consoles consistent across demographic groups
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- Figure 49: Purchase intent for game hardware as a gift, by gender, age and household income, June-July 2010
Kinect and Move
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- Key points
- Kinect and Move offer new UI for Xbox and PS
- Teen interest in trying Kinect and Move three times higher than adults
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- Figure 50: Interest in trying Move and Kinect among adults, by age, June-July 2010
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- Figure 51: Interest in trying Move and Kinect among teens, by gender, June-July 2010
- Both products on the purchase and gift radar
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- Figure 52: Purchase intent for Kinect and Move, as a gift or for oneself, June-July 2010
- Core gaming groups more interested in Kinect than Move
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- Figure 53: Purchase intent for Kinect and Move for personal use, by gender, age and household income, June-July 2010
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- Figure 54: Purchase intent for Kinect and Move as gifts, by gender, age and household income, June-July 2010
Functional Gaming
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- Key points
- Games that increase brain activity or improve memory desired by all ages
- Young adults mostly interested in video games for functional purposes
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- Figure 55: Interest in functional gaming, by age, June-July 2010
Game Selection
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- Price and recommendations leading factors
- Ads and brand influence younger adults most
- One in five games bought on impulse
- Gift purchasing frequent reason for selection among older respondents
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- Figure 56: Factors that influence video game purchase choices, by age, June-July 2010
Game Gifting
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- Women and 25-44s more likely to gift games
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- Figure 57: Game gifting plans, by gender, June-July 2010
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- Figure 58: Game gifting plans, by age, June-July 2010
Massively Multiplayer Online Games (MMOGs)
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- Women play MMOGs
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- Figure 59: MMOG gaming on PC and console, by gender, June-July 2010
Race and Hispanic Origin
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- Key points
- Video games equally popular regardless of race/Hispanic origin
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- Figure 60: Playing and purchasing in last year, by race/Hispanic origin, July 2009-March 2010
- Wii more popular with Asians, Xbox with blacks
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- Figure 61: Console and packaged PC systems played/owned, by race/Hispanic origin, July 2009-March 2010
- Action/adventure top genre across all groups
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- Figure 62: Genre most often played in last six months, by race/Hispanic origin, July 2009-March 2010
- Minorities more likely to prefer games to television
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- Figure 63: Attitudes toward video games as a form of entertainment, by race/Hispanic origin, July 2009-March 2010
Teens
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- Key points
- Usage
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- Figure 64: Incidence of gaming among teens, by gender and age, November 2008-December 2009
- Older teen boys move away from Wii
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- Figure 65: Consoles owned/played among teens, by gender and age, November 2008-December 2009
- Wiimote resonates with Asian teens
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- Figure 66: Gaming platforms owned/played by teens, by race/Hispanic origin, November 2008-December 2009
- Teens keen on consoles
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- Figure 67: Incidence of packaged video game play among teens in last three months, by gender, June-July 2010
- Teens purchase twice as many games as youngest adults
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- Figure 68: Number of games bought or rented in last year among teens, by gender and age, November 2008-December 2009
- Black teens buy and rent more
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- Figure 69: Number of games bought or rented by teens in last year, by race/Hispanic origin, November 2008-December 2009
- Teen boys more engaged than teen girls
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- Figure 70: Attitudes toward video games as a form of entertainment among teens, by gender and age, November 2008-December 2009
- Attitudes toward price, borrowing and renting
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- Figure 71: Price sensitivity, borrowing, and renting among teens, by gender and age, November 2008-December 2009
- Fighting genre more popular with black and Hispanic teens
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- Figure 72: Genre played most often by teens in last six months, by race/Hispanic origin, November 2008-December 2009
Kids
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- Key points
- Usage
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- Figure 73: Video game penetration among kids 6-11, by gender and age, November 2008-December 2009
- Asian kids much less likely to play video games
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- Figure 74: Video game penetration among kids 6-11, by race/Hispanic origin, November 2008-December 2009
- Wii and PS2 lead among kids
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- Figure 75: Consoles owned/played among kids 6-11, by gender and age, November 2008-December 2009
- Figure 76: Video game consoles owned or played among kids 6-11, by race/Hispanic origin, November 2008-December 2009
- Children buy/receive four games per year on average
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- Figure 77: Number of games bought/received in last year among kids 6-11, by gender and age, November 2008-December 2009
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- Figure 78: Number of games bought/received by kids in last year, by race/Hispanic origin, November 2008-December 2009
- Preferences between entertainment media
- Girls more likely to favor TV over gaming
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- Figure 79: Preferences between gaming and television among kids 6-11, by gender and age, November 2008-December 2009
- Black children more likely to prefer games to television
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- Figure 80: Preference between games and tv among kids 6-11, by race/Hispanic origin, November 2008-December 2009
- Children engaged in cost-savings efforts
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- Figure 81: Price sensitivity, borrowing and renting, by gender and age, November 2008-December 2009
- Black and Hispanic kids rent/borrow more
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- Figure 82: Price sensitivity, borrowing and renting among kids 6-11, by race/Hispanic origin, November 2008-December 2009
- Internet connectivity while gaming limited
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- Figure 83: Internet connectivity during gaming among kids 6-11, by gender and age, November 2008-December 2009
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- Figure 84: Internet connectivity during gaming among kids 6-11, race/Hispanic origin, November 2008-December 2009
Cluster Analysis
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- Brain Teasers
- Demographics
- Characteristics
- Opportunity
- Functionalists
- Demographics
- Characteristics
- Opportunity
- Bargain Hunters
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 85: PC and console games clusters, July 2010
- Figure 86: Attitudes toward gaming, by clusters, July 2010
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- Figure 87: Factors motivating most recent game purchase, by clusters, July 2010
- Figure 88: Spend on games and accessories, by clusters, June-July 2010
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- Figure 89: Attitudes to functional gaming, by clusters, July 2010
- Figure 90: Attitudes toward product placement, by clusters, July 2010
- Cluster demographics
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- Figure 91: PC and console games clusters, by gender, July 2010
- Figure 92: PC and console games clusters, by age group, July 2010
- Figure 93: PC and console games clusters, by household income group, July 2010
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- Figure 94: PC and console games clusters, by race, July 2010
- Figure 95: PC and console games clusters, by Hispanic origin, July 2010
- Cluster methodology
Custom Consumer Groups
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- Key points
- Xbox360 and online PC gamers most engaged
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- Figure 96: Attitudes toward video games as a form of entertainment, by systems owned or played, July 2009-March 2010
- Spend on games largely consistent between platforms
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- Figure 97: Spend on video games by systems owned or played, July 2009-March 2010
Appendix: Other Useful Consumer Tables
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- Figure 98: Video game adoption among friends, by gender, June-July 2010
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- Figure 99: Systems owned or played, tabulated by systems owned or played, July 2009-March 2010
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- Figure 100: Attitudes to in-game product placement, by age, June-July 2010
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- Figure 101: Game borrowing, by race/Hispanic origin, July 2009-March 2010
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- Figure 102: Attitudes toward video games as a form of entertainment, all adults vs. gamers, July 2009-March 2010
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- Figure 103: Genre preferences among teens, by gender and age, November 2008-December 2009
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Appendix: Trade Associations
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