Table of Contents
Overview
-
- What you need to know
- Key issues covered in this Report
- Definition
- COVID-19: market context
- Economic and other assumptions
Executive Summary
-
- Top takeaways
- Market overview
-
- Figure 1: Emerging gaming technology ownership and interest, December 2020
- Impact of COVID-19 on emerging gaming technology
-
- Figure 2: Short-, medium- and long-term impact of COVID-19 on emerging gaming technology, February 2021
- Opportunities and challenges
- Satisfied players aren’t looking for new enhancements
-
- Figure 3: Attitudes toward the release of new gaming technology, December 2020
- Seamless gameplay can immerse players in digital worlds
-
- Figure 4: Important features to improve gaming experience, December 2020
- Accessories offer incremental improvements for new and established players
-
- Figure 5: Gaming accessories purchase intent, December 2020
- Cloud gaming, social gamers set to benefit from 5G rollout
-
- Figure 6: 5G interest and usage, all vs gamers and social gamers, December 2020
- Action genres can help propel VR gaming
-
- Figure 7: Ideal genres to play in VR, December 2020
The Market – Key Takeaways
-
- Key segments of gaming tech show promise
- Seven in 10 adults play video games
- New ways to game are on the horizon
- Gamers look to enhance immersive elements and social capabilities
Market Segments Overview
-
- Virtual reality
- What’s happening
- What’s next
- Augmented reality
- What’s happening
- What’s next
- Cloud gaming
- What’s happening
- What’s next
- Gaming accessories
- What’s happening
- What’s next
Target Audience – The US Gamer
-
- Who are gamers?
-
- Figure 8: Profile of US gamers, by key demographics, December 2020
- Mobile attracts the largest audience
-
- Figure 9: Gaming devices used, December 2020
- Gaming is a daily habit
-
- Figure 10: Frequency of gaming and weekly hours, December 2020
- Casual gaming is common
-
- Figure 11: Reasons to play video games, December 2020
- Puzzle and board games have the largest audience
-
- Figure 12: Preferred gaming genres – Any rank, October 2020
Market Factors
-
- Relevant macroeconomic indicators
- Stimulus may not be enough to encourage extra spending
-
- Figure 13: Unemployment and underemployment rate, January 2019-November 2020
- Upgrades aren’t deemed necessary amidst economic uncertainty
-
- Figure 14: Tech cost-cutting measures, August 2020
- 5G networks and smartphones are starting to hit the market
-
- Figure 15: 5G smartphone adoption and interest, December 2020
- Impact of COVID-19 on emerging gaming technology
-
- Figure 16: Short-, medium- and long-term impact of COVID-19 on emerging gaming technology, February 2021
- Lockdown
- Re-emergence
- Recovery
- Learnings from the last recession
- In-home entertainment becomes a higher priority during economic uncertainty
-
- Figure 17: Consumer spending on leisure and entertainment, by market segments, at current prices, 2000-25
- State of gaming in 2008 points to continued investments in hardware
-
- Figure 18: Global unit sales of Nintendo Wii, PS3 and Xbox 360, 2006-08
Market Perspective
-
- Practical technology props up slowed spending in 2020
-
- Figure 19: Market size and forecast of technology and communications, at current prices, 2015-25
- Players are spending more time with games (along with other entertainment)
-
- Figure 20: Changes in entertainment consumption due to COVID-19, October 2020
- Video games among the most popular purchases during pandemic
-
- Figure 21: Devices purchased due to COVID-19, August 2020
- Free-to-play games may hurt value of gaming services
-
- Figure 22: Attitudes toward free games and gaming services, 2019 vs 2020
Market Opportunities
-
- Immersive elements can excite early adopters
- Promote 5G to emphasize connection over competitive edge
-
- Figure 23: 5G interest and usage, all vs gamers and social gamers, December 2020
- Offer budget versions of new tech to bring in price-conscious novices
- Find opportunities to showcase tech in person
Companies and Brands – Key Takeaways
-
- Key brands look to expand market positions in 2021
- New levels of immersion are coming
- Practicality is more important than novelty
Key Brands
-
- Cloud/subscription gaming
- Google Stadia
-
- Figure 24: Google Stadia banner ad, December 2020
- Amazon Luna
-
- Figure 25: Amazon Luna Twitter post, December 2020
- Xbox Game Pass Ultimate
-
- Figure 26: Xbox Game pass banner ad, December 2020
- NVIDIA GeForce NOW
-
- Figure 27: NVIDIA GeForce NOW Twitter post, January 2020
- Facebook Gaming
- VR
- Oculus
-
- Figure 28: Oculus Gaming Instagram post, December 2020
- PlayStation VR
-
- Figure 29: PlayStation VR banner ad, December 2020
- Accessories
- Razer
-
- Figure 30: Razer Instagram post, December 2020
- SteelSeries
-
- Figure 31: SteelSeries Instagram post, January 2021
Innovations to Watch
-
- Mobile accessories
-
- Figure 32: OtterBox accessories Instagram post, January 2021
- All-in-one gaming stations
-
- Figure 33: Razer Project Brooklyn Instagram post, January 2021
- Haptic suits
-
- Figure 34: bHaptics Instagram post, December 2020
Competitive Strategies
-
- Acquisitions spur innovations
- Cloud gaming services compete on exclusives, price
- The games need to be the stars to showcase tech
-
- Figure 35: Gaming hardware Facebook ads
The Consumer – Key Takeaways
-
- Players look to accessories for incremental improvements
- New consoles will dominate conversation
- 5G expansion may drive adoption of gaming services
- Practicality trumps novelty for new tech
- VR games will need to lean on action
- New tech is exciting (but unnecessary) for most players
- Segmentation highlights unique opportunities for new technology
Gaming Accessories
-
- Less expensive peripherals can enhance gameplay…
-
- Figure 36: Gaming accessories purchase intent, December 2020
- …and they make good gifts for tweens
-
- Figure 37: Gaming accessories purchase intent, by age of children in household, December 2020
- Advanced controllers could break through
-
- Figure 38: Video game controller purchase intent, December 2020
- 8K is still far away
-
- Figure 39: Gaming monitor purchase intent, December 2020
Gaming Hardware Ownership and Interest
-
- New consoles will be big ticket items of 2021
-
- Figure 40: Console and computer ownership and interest, December 2020
- VR hardware has potential…
-
- Figure 41: VR/AR headsets ownership and interest, December 2020
- …especially in the console world
-
- Figure 42: VR/AR headsets ownership and interest, by active gamer segments, December 2020
Gaming Services
-
- Gaming services still have to bridge the gap of indifference
-
- Figure 43: Gaming services use and interest, December 2020
- Console players will drive subscription service model and cloud gaming
-
- Figure 44: Gaming services use and interest, by active gamer segments, December 2020
- Cloud gaming will benefit from 5G, but 5G will be the main selling point
-
- Figure 45: Attitudes toward 5G and cloud gaming, December 2020
- 5G can be positioned to connect players
-
- Figure 46: Attitudes toward 5G and cloud gaming, by Mintel gamer segments, December 2020
Important Features for New Gaming Technology
-
- Speedy gaming will be an important selling point
-
- Figure 47: Important features to improve gaming experience, December 2020
-
- Figure 48: TURF Analysis – Tech features, November 2020
- Rural gamers missing speed, while urban players want to connect
-
- Figure 49: Important features to improve gaming experience – Select items, by living area, December 2020
- Function outshines flash in gaming hardware
-
- Figure 50: Important features for gaming hardware ranked, December 2020
Interest in VR Genres
-
- VR can break through with action entries
-
- Figure 51: Ideal genres to play in VR, December 2020
- Console players want action in VR, computer players look for immersion
-
- Figure 52: Ideal genres to play in VR, by active gamer segments, December 2020
Attitudes toward New Gaming Technology
-
- Excitement doesn’t always translate to early adoption
-
- Figure 53: Attitudes toward the release of new gaming technology, December 2020
- AR, cloud gaming interest are signs of early adopters
-
- Figure 54: Attitudes toward new gaming technology – CHAID – Tree output, December 2020
- Inclusion, compatibility get players excited about the future of gaming
-
- Figure 55: Attitudes toward inclusion in gaming technology, December 2020
- New gaming technology needs to justify high cost
-
- Figure 56: Attitudes toward the barriers to new gaming technology, December 2020
- Further steps toward immersion intrigue players
-
- Figure 57: Attitudes toward realism in gaming, December 2020
Consumer Segmentation – Emerging Gaming Technology
-
- Factors
-
- Figure 58: Emerging gaming technology consumer segmentation, December 2020
- Sensible Supporters (35%)
- Demographics
- Characteristics
- Opportunities
-
- Figure 59: Profile of Sensible Supporters, December 2020
- Easygoing Explorers (26%)
- Demographics
- Characteristics
- Opportunities
-
- Figure 60: Profile of Easygoing Explorers, December 2020
- Active Adopters (19%)
- Demographics
- Characteristics
- Opportunities
-
- Figure 61: Profile of Active Adopters, December 2020
- Peaceful Players (19%)
- Demographics
- Characteristics
- Opportunities
-
- Figure 62: Profile of Peaceful Players, December 2020
Appendix – Data Sources and Abbreviations
-
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – TURF Analysis
-
- Methodology
-
- Figure 63: TURF Analysis – Tech features, December 2020
Appendix – CHAID Analysis
-
- Methodology
-
- Figure 64: Attitudes toward new gaming technology – CHAID – Table output, December 2020
Back to top