Table of Contents
Overview
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- What you need to know
- Key issues covered in this Report
- Definition
- COVID-19: market context
- Economic and other assumptions
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: Gaming revenue, global vs US, 2016-20
- Impact of COVID-19 on gaming
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- Figure 2: Short-, medium- and long-term impact of COVID-19 on gaming, December 2020
- Opportunities and challenges
- Gaming competes with other entertainment
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- Figure 3: Changes in entertainment consumption due to COVID-19, October 2020
- Greater gaming emphasis doesn’t necessarily bring longer marathon sessions
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- Figure 4: Gaming compared to previous year, 2019 vs 2020
- Consoles will drive conversation in 2021
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- Figure 5: Video game devices played, October 2019 vs October 2020
- Non-competitive social gaming is essential for gamers looking to relax
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- Figure 6: Changes in gaming motivations due to COVID-19, October 2020
- Emphasizing community can foster a deeper connection
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- Figure 7: Attitudes toward gaming communities, October 2020
- What’s next
The Market – Key Takeaways
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- US gaming revenue continues to rise amidst downturn
- Mobile reaches largest audience, but consoles drive participation
- Shifts in gaming expectations could have long-term implications in the industry
- 2021 will see expansions to product lineups and brand collaborations
Market Size
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- US gaming growth outpaces the global market over the past five years
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- Figure 8: Gaming revenue, global vs US, 2016-20 (est)
- Gaming forecasting implications
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- Figure 9: Key drivers affecting Mintel’s market forecast, 2019-25 (prepared in November 2020)
- Impact of COVID-19 on gaming
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- Figure 10: Short-, medium- and long-term impact of COVID-19 on gaming, December 2020
- Lockdown
- Re-emergence
- Recovery
- Learnings from the last recession
- In-home entertainment remains a priority during economic uncertainty
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- Figure 11: Consumer spending on leisure and entertainment, by market segments, at current prices, 2000-25
- Strong console performance in previous generations points to continued success
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- Figure 12: Global unit sales of Nintendo Wii, PS3 and Xbox 360, 2006-08
Gaming Devices and Who’s Playing Them
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- Console performance drives growth in gaming audience
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- Figure 13: Video game devices played, October 2019 vs October 2020
- Smartphone spending bolsters global revenue
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- Figure 14: Global gaming revenue, by market segment, 2019 vs 2020 (est)
- Who’s playing every week?
- Active mobile gamers
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- Figure 15: Active mobile gamers, by key demographics, October 2020
- Active computer gamers
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- Figure 16: Active computer gamers, by key demographics, October 2020
- Active console gamers
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- Figure 17: Active console gamers, by key demographics, October 2020
Market Factors
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- Emphasis on entertainment helps gaming gain importance
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- Figure 18: Changes in entertainment consumption due to COVID-19, October 2020
- Online gameplay takes on new importance in pandemic
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- Figure 19: Online gaming activities done since COVID-19, August 2020
- An industry designed around “crunch” could unionize
- Amazon looks to expand its position in the gaming market
- Apple legal battles could shape gaming industry
- Higher-priced games lead to more revenue, but could also result in defectors to free-to-play
What’s Coming in 2021
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- New consoles invigorate interest in dedicated gaming devices
- Expansion of cloud gaming capabilities
- More integrated cross-category gaming collaborations
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- Figure 20: Bounty Twitch Commercial, June 2020
- New gaming content platforms will try to capture emerging audience
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- Figure 21: @watchvenn Launch Instagram post, August 2020
- Blurring lines between real world and gaming interactions
Companies and Brands – Key Takeaways
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- Look to breakout games to see what will be important in 2021
- Encourage large and small communities to try new games
Standout Games in 2020
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- Animal Crossing: New Horizon
- Half-Life: Alyx
- Fall Guys: Ultimate Knockout
- The Last of Us: Part II
- Dreams
- Valorant
Marketing Strategies
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- Bringing the gaming community together
- Further pushes into free-to-play
- Giving gamers a taste of something greater with free games
- Extending gaming brands into new industries
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- Figure 22: @atarihotels Instagram post, October 2020
- Indie games get pushed to reach smaller passionate fanbases
The Consumer – Key Takeaways
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- Technology, entertainment value and community drive gamers
- Casual gaming takes on greater importance during pandemic
- Daily gaming interactions encourage short sessions of play
- Only dedicated players appear to be interested in gaming content
- Action genres growing but puzzle games still dominate
- COVID-19 has strengthened a desire to balance the new with the familiar
- Hardware garners more excitement than services
- Gamers getting more skeptical of inauthentic brand sponsorships
- Appealing to community and connection can open up gaming engagement
Trend Drivers and Gaming
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- Figure 23: Mintel Trend Drivers and Pillars
- Technology
- Identity
- Value
- Rights
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Motivations for Gaming
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- Casual gaming is important for most players…
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- Figure 24: Motivations for gaming, 2019 vs 2020
- …especially during the stresses of COVID-19
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- Figure 25: Changes in gaming motivations due to COVID-19, October 2020
- Players gaming to compete and socialize drive engagement
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- Figure 26: Profile of competitors and social gamers, by key demographics, October 2020
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- Figure 27: Preferred gaming genres – Any rank, by competitors and social gamers, October 2020
Time Spent Gaming
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- Players frequently interact with games
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- Figure 28: Frequency of gaming, 2019 vs 2020
- Anticipation for increased gaming time is greater for 2021 than it was for 2020
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- Figure 29: Gaming compared to previous year, 2019 vs 2020
- Most players don’t dedicate lots of time to playing
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- Figure 30: Time spent gaming in an average week, 2019 vs 2020
Watching Gameplay
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- Most gamers consume some gaming content, but engagement is limited
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- Figure 31: Time spent watching gameplay in an average week, 2019 vs 2020
- Introducing new audiences to gaming content can grow engagement
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- Figure 32: Changes in watching gameplay due to COVID-19, October 2020
- Casual interactions can segue to content creation
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- Figure 33: Changes in contributing to gaming content due to COVID-19, October 2020
- Gaming content has potential to reach casual newcomers
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- Figure 34: Attitudes toward watching gameplay, October 2020
Preferred Gaming Genres
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- Puzzle, card games top the list of favorite genres
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- Figure 35: Preferred gaming genres, October 2020
- Little change in genre appeal, but battle royale gains some ground
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- Figure 36: Preferred gaming genres, 2019 vs 2020
Impact of COVID-19 on Gaming Habits
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- Free games take on greater importance in pandemic
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- Figure 37: Changes in gaming spending due to COVID-19, October 2020
- New and old games alike have value beyond COVID-19
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- Figure 38: Changes in types of games played due to COVID-19, October 2020
Interest in Gaming Innovations
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- New hardware is more eagerly anticipated than service offerings
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- Figure 39: Interest in gaming innovations ranked, October 2020
- Console gamers drive interest in gaming innovations
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- Figure 40: Attitudes toward new gaming technology, by active gamer segments, October 2020
- Interest in gaming services wanes vs 2019
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- Figure 41: Attitudes toward free games and gaming services, 2019 vs 2020
Marketing in Gaming
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- Brands entering the gaming space meet a (sometimes) welcoming audience
- Continued investment brings a more favorable response
- Interest in key categories has decreased from 2019
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- Figure 42: Marketing in gaming, 2019 vs 2020
- Active gamers want more variety in gaming sponsorships
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- Figure 43: Repertoire of number of industries gamers would like to see sponsor gaming, October 2020
Gaming and Connection
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- Gaming can be a source of connection
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- Figure 44: Attitudes toward the appeal of video games, October 2020
- Community keeps players engaged
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- Figure 45: Attitudes toward gaming communities, October 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Consumer
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- Figure 46: Genres played by gamers, 2016-20
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