Table of Contents
Overview
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- What you need to know
- Key issues covered in this Report
- COVID-19: Market context
- Economic and other assumptions
- Products covered in this Report
Executive Summary
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- Impact of COVID-19 on video games and consoles
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- Figure 1: Short, medium and long-term impact of COVID-19 on video games and consoles, 10 August 2020
- The market
- Video games and consoles market valued at £1.8 billion in 2020
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- Figure 2: Value of UK video games and console market, 2015-20
- COVID-19 lockdown contributes to higher games console sales in the first half of 2020
- Companies and brands
- Game streaming platforms gain prominence as a console alternative
- Google adds array of new features to Stadia after initial launch
- Xbox reveals Series X specifications ahead of November 2020 launch
- PlayStation also showcases PS5 ahead of holiday launch
- The consumer
- Growth in ownership for Nintendo Switch
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- Figure 3: Ownership of static games consoles, June 2019-June 2020
- Around two in 10 PS4 owners have PSVR
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- Figure 4: Ownership of PlayStation virtual reality headset, June 2020
- Over a quarter of portable console owners have a Nintendo Switch Lite
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- Figure 5: Ownership of portable games consoles, June 2020
- Majority of static and portable console owners buy physical games
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- Figure 6: Use cases for static games consoles, June 2020
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- Figure 7: Use cases for portable games consoles, June 2020
- COVID-19 causes growth in media viewing on static consoles
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- Figure 8: Usage of static games consoles since COVID-19 outbreak, June 2020
- Online gaming growth for portable consoles
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- Figure 9: Usage of portable games consoles since COVID-19 outbreak, June 2020
- Over half of static console owners will upgrade to the next generation
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- Figure 10: Intent to upgrade to next-generation console, June 2020
- Next-generation consoles address consumer demand for quality and user experience
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- Figure 11: Purchase motivators for games consoles, June 2020
- Over a third of console owners had actively tried to reduce game time before COVID-19
- Younger Millennials drive purchases of in-game content for consoles
- A quarter of console owners would prefer to use a streaming service for games
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- Figure 12: Reducing time spent on consoles and attitudes towards in-game purchases and streaming services, June 2020
COVID-19 and Video Games and Consoles
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- Impact on the market
- Lockdown a key driver of much higher console sales H1 2020
- Financial uncertainty unlikely to affect early purchases of next-gen consoles
- Impact on companies and brands
- Manufacturers offer free access during lockdown
- Charity initiatives and developer support also helping generate goodwill
- Impact on consumers
- COVID-19 causes growth in media viewing on static consoles
- Online gaming for portable consoles during COVID-19
Issues and Insights
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- How COVID-19 is shaping the video games and consoles industry
- Developers will need to take a responsible approach to loot boxes, even at the expense of game time
The Market – Key Takeaways
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- COVID-19 provides substantial boost to the market despite consumers’ financial concerns
- Streaming-based gaming platforms have arrived but won’t replace traditional consoles just yet
Market Size and Forecast
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- Video games and consoles market to perform well despite COVID-19
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- Figure 13: Short, medium and long-term impact of COVID-19 on video games and consoles, 10 August 2020
- Video games and consoles market valued at £1.8 billion in 2020
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- Figure 14: Value of UK video games and consoles market, 2015-20
- Figure 15: Forecast for value of UK video games and console market, 2020-25
- COVID-19 lockdown contributes to higher game console sales in first half of 2020
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- Figure 16: Volume of games console sales in the UK, 2015-20
- Nintendo Switch sees significant growth in sales between 2018 and 2019
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- Figure 17: Share of UK console sales, 2018-19
- Console manufacturers highlight substantial growth in software sales
- Market drivers and assumptions
- Learnings from the last recession
Market Drivers
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- Game streaming platforms gain prominence as console alternative
- Growing popularity of video streaming also a plus for consoles
- Early signs that COVID-19 financial uncertainty won’t dampen enthusiasm for console purchases
- Rise of social gaming venues help to take gaming out of the home
- Concern grows over loot boxes and links to gambling
- NHS director also critical over loot boxes
- Over 30% of static console owners buy in-game content
Companies and Brands – Key Takeaways
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- Google developing its Stadia offering
- Details of the next-generation consoles are revealed
Launch Activity and Innovation
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- Google adds array of new features to Stadia after initial launch
- Support for any Android device
- Gameplay over 4G and 5G
- Cross platform gaming support
- Two months of Stadia Pro offered for free as part of COVID-19 lockdown
- Xbox reveals Series X specifications ahead of November 2020 launch
- Next-generation games Halo Infinite and Deathloop delayed due to COVID-19
- Halo Infinite
- Deathloop
Brand Research
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- Brand map
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- Figure 18: Attitudes towards and usage of selected brands, June 2020
- Key brand metrics
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- Figure 19: Key metrics for selected brands, June 2020
- Brand attitudes: PlayStation leads in consumer trust and delivering high quality
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- Figure 20: Attitudes, by brand, June 2020
- Brand personality: Fun ranks top in consumers’ opinion of PlayStation, Xbox and Nintendo
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- Figure 21: Brand personality – macro image, June 2020
- PlayStation leads rivals in positive consumer opinions
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- Figure 22: Brand personality – micro image, June 2020
- Brand analysis
- PlayStation edges out Xbox in being viewed as the most reliable and cutting-edge console
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- Figure 23: User profile of PlayStation, June 2020
- Xbox is close to PlayStation across a variety of consumer opinions
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- Figure 24: User profile of Xbox, June 2020
- Affordability of Nintendo could be important during COVID-19 financial uncertainties
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- Figure 25: User profile of Nintendo, June 2020
The Consumer – Key Takeaways
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- Static console ownership stable as consumers prepare for next-generation
- Concerns over loot boxes and gaming addiction
Impact of COVID-19 on Consumer Behaviour
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- COVID-19 causes growth in media viewing on static consoles
- Interest in media shows potential value of picture-in-picture
- Online gaming growth
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- Figure 26: Usage of static games consoles since COVID-19 outbreak, June 2020
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- Figure 27: Usage of portable games consoles since COVID-19 outbreak, June 2020
Ownership of Games Consoles
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- Growth in ownership for Nintendo Switch
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- Figure 28: Ownership of static games consoles, June 2019-June 2020
- Around two in 10 PS4 owners have PSVR
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- Figure 29: Ownership of PlayStation virtual reality headset, June 2020
- Over a quarter of portable console owners have a Nintendo Switch Lite
- Rise of mobile gaming linked to drop in portable consoles
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- Figure 30: Ownership of portable games consoles, June 2020
Activities on Games Consoles
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- Majority of static and portable console owners buy physical games
- Streaming service bundles can encourage take-up of new consoles
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- Figure 31: Use cases for static games consoles, June 2020
- Figure 32: Use cases for portable games consoles, June 2020
Intent to Upgrade Consoles and Purchase Drivers
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- Over half of static console owners will upgrade to the next generation
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- Figure 33: Intent to upgrade to next-generation console, June 2020
- Next-generation consoles address consumer demand for quality and user experience
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- Figure 34: Purchase motivators for games consoles, June 2020
Attitudes Towards Games Consoles
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- Over a third of console owners had actively tried to reduce game time before COVID-19
- Social gaming to thrive as COVID-19 lockdown eases
- Younger Millennials drive purchases of in-game content for consoles
- A quarter of gamers would prefer to use a streaming service for games
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- Figure 35: Reducing time spent on consoles and attitudes towards in-game purchases and streaming services, June 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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