Table of Contents
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: Gaming revenue, global vs US, 2016-20 (est)
- Impact of COVID-19 on gaming retail
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- Figure 2: Short-, medium- and long-term impact of COVID-19 on free and paid video games, January 2021
- Opportunities and challenges
- Reach out to the gamers directly
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- Figure 3: Types of games purchased, all adults vs all gamers, November 2020
- Digital stores aim straight for players’ needs
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- Figure 4: Online vs in-store purchases, November 2020
- Players are willing to spend on quality games
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- Figure 5: Amount spent on video games, November 2020
- Buyers are decisive, but have no sense of urgency
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- Figure 6: Gaming purchase behaviors – Retailer indifference, November 2020
- Utilize resale market to provide more value
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- Figure 7: Attitudes toward the value of new and used games, November 2020
The Market – Key Takeaways
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- Video game sales continue to rise
- More than two thirds of adults play video games
- Smartphone, console games drive global growth
- Retail slowdown shifts focus to ecommerce revenue
- Retailers can find value in new narratives and old games
Market Size
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- Gaming revenue growth accelerates in 2020
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- Figure 8: Gaming revenue, global vs US, 2016-20 (est)
- Gaming forecast indicators
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- Figure 9: Key drivers affecting Mintel’s market forecast, 2019-25 (prepared in December 2020)
- Impact of COVID-19 on gaming retail
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- Figure 10: Short-, medium- and long-term impact of COVID-19 on free and paid video games, January 2021
- Lockdown
- Re-emergence
- Recovery
- Learnings from the last recession
- In-home entertainment becomes a higher priority during economic uncertainty
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- Figure 11: Consumer spending on leisure and entertainment, by market segments, at current prices, 2000-25
- People kept buying games but in smaller quantities
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- Figure 12: Number of games bought in the past 12 months, 2008-11
Target Audience – The US Gamer
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- Who are gamers?
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- Figure 13: Profile of US gamers, by key demographics, November 2020
- Mobile attracts the largest audience
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- Figure 14: Gaming devices used, November 2020
- Gaming is a daily habit
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- Figure 15: Frequency of gaming and weekly hours, November 2020
- Casual gaming is common
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- Figure 16: Reasons to play video games, November 2020
- Puzzle and board games have the largest audience
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- Figure 17: Preferred gaming genres – Any rank, October 2020
Global Segment Performance
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- Growth in key gaming segments signals promising sales in the future
- Mobile gaming
- Console gaming
- PC gaming
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- Figure 18: Global gaming revenue, by market segment, 2019 vs 2020 (est)
Market Factors
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- Gaming will have more competition from other entertainment
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- Figure 19: Changes in entertainment consumption due to COVID-19, October 2020
- Retail recovery could take a few years
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- Figure 20: Total US retail sales and forecast, including ecommerce, at current prices, 2015-25
- eCommerce makes up small portion of retail, but will continue to grow
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- Figure 21: eCommerce share of total US retail sales, 2015-25
- Gaming spending a small, but growing, part of ecommerce
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- Figure 22: eCommerce sales, all vs computer/video game software and audio/video recordings, 2016 and 2018
- COVID-19 has changed how people purchase games, especially for boxed PC players and gaming subscribers
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- Figure 23: Impact of COVID-19 on gaming purchases, by type of gaming purchase, November 2020
- Shift to free-to-play hurts interest in purchases, services
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- Figure 24: Attitudes toward free games and gaming services, 2019 vs 2020
Market Opportunities
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- Retailers and gaming companies can create mutually beneficial relationships
- Put game creators in the spotlight
- Expand on traditional retail holidays to make room for new ones
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- Figure 25: GameStop Cyber Weekend Instagram post, September 2020
- Exclusive titles will become a greater selling point
- Find ways to encourage a digital resale market
Companies and Brands – Key Takeaways
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- Online retail drives gaming purchases
- Key retailers differentiate on exclusives and convenience
- Entertainment ecosystems make for a valuable offer
Market Share
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- Downloads dominate discs in a digital world
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- Figure 26: Physical discs vs digital downloads, November 2020
- Online purchases are the most common route
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- Figure 27: Online vs in-store purchases, November 2020
Key Retailers
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- Amazon
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- Figure 28: Amazon Luna Twitter post, December 2020
- Digital stores
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- Figure 29: PlayStation Store Call of Duty banner ad, November 2020
- Electronics retailers
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- Figure 30: GameStop Facebook ads, 2020
- Mass merchandisers
Competitive Strategies
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- A steady stream of free games to bring in users
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- Figure 31: Epic Games Store “Keep It Forever” banner ads, May and June 2020
- Utilizing gaming ecosystems to bring convenience, value
- Creating more equitable revenue sharing with gaming creators
- Pop-ups can spur excitement for new releases
The Consumer – Key Takeaways
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- Nearly everyone who buys video games is a player
- Gaming buyers are spending big
- Retailers that deliver good prices, convenience stand out
- Social media conversations inform players about new games
- Retailers need to create a sense of urgency
- The value in used games is underutilized in digital gaming retail
- Segmentation highlights unique opportunities among game purchasers
Video Game Purchases
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- Game purchases represent market preferences
- Cheap mobile games make for quick investments
- The digital/disc dichotomy flips for PC and console gamers
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- Figure 32: Types of games purchased, November 2020
- Gamers are the ones buying the games
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- Figure 33: Types of games purchased, all adults vs all gamers, November 2020
- Device crossover shows lack of limitations for what people will purchase
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- Figure 34: Types of games purchased, by type of game purchased, November 2020
- Most people are giving the gift of games to themselves
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- Figure 35: Who video games were purchased for, by type of game purchased, November 2020
Spending on Video Games
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- High prices may not deter gamers seeking quality
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- Figure 36: Attitudes toward the cost of games, November 2020
- Most buyers drop big bucks on games
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- Figure 37: Amount spent on video games, November 2020
- Large households invest in different interests
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- Figure 38: Amount spent on video games, by number of children in the household, November 2020
Where People Buy Video Games
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- Players don’t need to buy from a variety of stores
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- Figure 39: Number of gaming retailers shopped, November 2020
- Digital stores create convenient paths for all gamers
- Mobile: Large libraries of inexpensive games
- Console: PlayStation delivers exclusives to large audience
- PC: Steam holds edge over Epic Games Store
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- Figure 40: Gaming retailers – Digital stores, November 2020
- Amazon dominates, while specialty retailers appeal to gamers
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- Figure 41: Gaming retailers – Major retailers, November 2020
- Price, game availability are primary deciding factors for retailers
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- Figure 42: Factors for deciding gaming retailers – Ranked, November 2020
- Online purchases preferred at most gaming retailers
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- Figure 43: Gaming purchase behaviors – Online purchases and retailer variety, November 2020
Video Game Purchase Influencers
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- Social media is important, but not all social is created equal
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- Figure 44: Video game purchase influencers – Social media, November 2020
- Influential gaming generations seek out different social outlets
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- Figure 45: Video game purchase influencers – Social media, by Gen Z and Millennials, November 2020
- Twitter users listen before they buy
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- Figure 46: The impact of word of mouth on gaming purchases, by social media platform used, November 2020
- Formal sources, word of mouth don’t connect as much
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- Figure 47: Video game purchase influencers – Other influencers, November 2020
Video Game Purchase Behaviors and Preferences
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- Most buyers don’t need a new game right away
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- Figure 48: Gaming purchase behaviors – Waiting for new games, November 2020
- Impact of free games has lessened the need to purchase games
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- Figure 49: Gaming purchase behaviors – Free vs paid games, November 2020
- Gender highlights difference in browsing, spending behaviors
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- Figure 50: Gaming purchase behaviors – Browsing and free games, by gender, November 2020
Attitudes toward Gaming Retail
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- Urgency is not much of a factor in gaming purchases
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- Figure 51: Attitudes toward urgency and preference in retailer, November 2020
- Players look to new games but they’re happy holding on for a long time
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- Figure 52: Attitudes toward the cost of games, November 2020
- Digital download distrust can hamper online market
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- Figure 53: Attitudes toward digital games, November 2020
Gaming Retail Consumer Segments
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- Factors
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- Figure 54: Video game purchaser segmentation, November 2020
- Retro Retrievers (36%)
- Demographics
- Characteristics
- Opportunities
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- Figure 55: Profile of Retro Retrievers, November 2020
- Disc Jockeys (31%)
- Demographics
- Characteristics
- Opportunities
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- Figure 56: Profile of Disc Jockeys, November 2020
- Digital Darlings (18%)
- Demographics
- Characteristics
- Opportunities
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- Figure 57: Profile of Digital Darlings, November 2020
- Bargain Hunters (15%)
- Demographics
- Characteristics
- Opportunities
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- Figure 58: Profile of Bargain Hunters, November 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
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