Table of Contents
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: Total US unit sales of video game consoles, 2013-21 (est)
- Impact of COVID-19 on console gaming
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- Figure 2: Short-, medium- and long-term impact of COVID-19 on console gaming, April 2021
- Opportunities and challenges
- Console players want new consoles as quickly as they can
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- Figure 3: Next generation console ownership and purchase intent, February 2021
- Older consoles still have value during generational transition
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- Figure 4: Video game console ownership, February 2021
- Brand loyalty is strong but getting tested
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- Figure 5: Number of consoles and brands used, 2020-21
- Leading console brands will define market positions to satisfy audience
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- Figure 6: Correspondence analysis – Symmetrical map – Perceptions of console brands, February 2021
- COVID-19 strengthened community and social gaming among console players
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- Figure 7: Attitudes toward community and connected gameplay, December 2019 and February 2021
The Market – Key Takeaways
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- 2020 sales boom set to reverberate into 2021
- Nintendo in a strong position to hold off new arrivals
- PlayStation and Xbox enter the next generation with confidence
- Most adults incorporate video games into their lives
- Stumbling blocks in 2020 will likely be overcome throughout 2021
Market Size
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- Fluctuating sales saw big boost in 2020
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- Figure 8: Total US unit sales of video game consoles, 2013-21 (est)
- Figure 9: Total US unit sales and year-over-year change of video game consoles, 2013-21 (est)
- Impact of COVID-19 on console gaming
- Immediate impacts (2020)
- Short term (2021)
- Recovery (2022-25)
- Learnings from the Great Recession
- Strong console performance of previous generations points to success even in a downturn
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- Figure 10: Global unit sales of Nintendo Wii, PS3 and Xbox 360, 2006-08
Segment Performance
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- Nintendo pulls ahead of the competition with Switch
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- Figure 11: US video game console market share, 2013-20
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- Figure 12: US video game console market share, 2013-20
- New console releases lead to major gains for leading brands
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- Figure 13: US console unit sales, by brand, 2013-20
- Nintendo
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- Figure 14: Nintendo US unit sales, by console, 2013-20
- PlayStation
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- Figure 15: PlayStation US unit sales, by console, 2013-20
- Xbox
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- Figure 16: Xbox US unit sales, by console, 2013-20
Target Audience – The US Gamer
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- Who are gamers?
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- Figure 17: Profile of US gamers, by key demographics, February 2021
- Mobile attracts the largest audience
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- Figure 18: Gaming devices used, February 2021
- Gaming is a daily habit
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- Figure 19: Frequency of gaming and weekly hours, February 2021
- Casual gaming is common
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- Figure 20: Reasons to play video games, February 2021
- Puzzle and board games have the largest audience
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- Figure 21: Preferred gaming genres – Any rank, all gamers vs console gamers, October 2020
Market Factors
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- Economic recovery will encourage consumer spending
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- Figure 22: GDP change from previous period and personal consumption expenditures, Q1 2018-Q4 2020
- Employment may affect big ticket tech purchases
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- Figure 23: Unemployment and underemployment, January 2020-January 2021
- Promising holiday sales signal strong launch for new consoles…
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- Figure 24: New console unit sales, November 2020-December 2020
- …but supply issues could keep sales lagging behind last generation
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- Figure 25: PlayStation and Xbox console sales, 2013 vs 2020
- COVID-19 encourages gaming investments, online gaming
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- Figure 26: Online gaming activities done since COVID-19, August 2020
Companies and Brands – Key Takeaways
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- Nintendo: reaching families and promoting versatility
- PlayStation: elite and immersive
- Xbox: power and services
- Brands can provide value by emphasizing new experiences and community
Competitive Strategies – Nintendo
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- Nintendo player overview
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- Figure 27: Nintendo consumer profile, by key demographics, February 2021
- Current console: Nintendo Switch
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- Figure 28: Nintendo Switch US unit sales, 2017-20
- Marketing strategies: “My way to play”
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- Figure 29: Nintendo “My way to play” banner ad, July 2020
- Figure 30: Nintendo Switch My Way – Super Mario Odyssey commercial, June 2020
- What happened in 2020
- Animal Crossing became the game of the pandemic
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- Figure 31: Animal Crossing: New Horizons Facebook ad, May 2020
- New emphasis on cooperative, online gameplay
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- Figure 32: Nintendo Switch – Play Together commercial, May 2020
- Switch shortages shift focus to Switch Lite
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- Figure 33: Nintendo Switch Lite banner ad, July 2020
- What to watch in 2021 and beyond
Competitive Strategies – PlayStation
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- PlayStation player overview
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- Figure 34: PlayStation consumer profile, by key demographics, February 2021
- Current console: PS5
- Marketing strategies: “Play has no limits”
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- Figure 35: PS5 banner ad, November 2020
- The games
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- Figure 36: PS5 Launch – New Worlds to Explore – Play Has No Limits commercial, November 2020
- The technology
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- Figure 37: PS5 haptic feedback Instagram ad, September 2020
- What happened in 2020
- Building hype throughout the year
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- Figure 38: PS5 Facebook ad, October 2020
- Trying to get as many consoles out as possible
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- Figure 39: PlayStation PS5 launch tweet, November 2020
- What to watch in 2021 and beyond
Competitive Strategies – Xbox
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- Xbox player overview
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- Figure 40: Xbox consumer profile, by key demographics, February 2021
- Current console: Xbox Series X/S
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- Figure 41: Xbox Series X/S announcement tweet, September 2020
- Marketing strategies: “Power your dreams”
- Emphasizing technical superiority
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- Figure 42: Xbox Series X|S Launch trailer – Us Dreamers – Power Your Dreams commercial, October 2020
- Everything tied in to service offerings
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- Figure 43: Xbox All Access banner ad, September 2020
- What happened in 2020
- Entering the cloud with Xbox Game Pass Ultimate
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- Figure 44: Xbox Game Pass Ultimate Instagram ad, December 2020
- Learning and responding to PlayStation missteps
- What to watch in 2021 and beyond
Market Opportunities
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- Utilize gaming services to extend the console gaming experience
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- Figure 45: Gaming services use and interest, by active gamer segments, December 2020
- Balance paid and free games for value-seeking players
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- Figure 46: Attitudes and behaviors related to the cost of games, November 2020
- Enhance console gameplay with new accessories
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- Figure 47: OtterBox accessories Instagram post, January 2021
- Create opportunities for the console community to come together
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- Figure 48: Attitudes toward gaming and connection, all gamers vs console gamers, October 2020
The Consumer – Key Takeaways
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- Typical hardcore gaming demographics represented in console gaming
- Console brands will utilize unique perceptions to strengthen audience and solidify brand image
- Nearly two thirds of console gamers are ready for new hardware
- Players want to see the improvements for new consoles
- Difficult console buying experiences won’t deter committed players
- Familiar experiences on older consoles remain valuable
- 2020 re-invigorated interest in consoles and community
Console Gamer Overview
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- Active console gamers represent engaged gamer groups
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- Figure 49: Active console gamer profile, by key demographics, February 2021
- New consoles have ground to make up, but PlayStation has a good start
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- Figure 50: Video game console ownership, February 2021
- Brand loyalty is strong now, but could weaken
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- Figure 51: Number of consoles and brands used, December 2019 and February 2021
Perceptions of Console Brands
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- PlayStation
- Xbox
- Nintendo
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- Figure 52: Correspondence analysis – Symmetrical map – Perceptions of console brands, February 2021
Purchasing Next Generation Consoles
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- PS5 set to have a big year if supply keeps up with demand
- PS5
- Xbox Series X/S
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- Figure 53: Next generation console purchase intent, February 2021
- Xbox efforts could bring PlayStation users over
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- Figure 54: Learning about consoles and switching brands, by console brands owned, February 2021
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- Figure 55: Xbox switching consoles tweet reply, September 2020
Reasons to Upgrade to New Consoles
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- High expectations for quality of next gen games
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- Figure 56: Attitudes toward the benefits of next generation consoles, February 2021
- Next generation needs to live up to the hype
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- Figure 57: Attitudes toward next generation hype, February 2021
- Graphics, gameplay will define a new generation of games
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- Figure 58: Most important reasons to upgrade to new consoles, February 2021
- Long-time players stick by brands they trust
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- Figure 59: Most important reasons to upgrade to new consoles – Brand, by key demographics, February 2021
Challenges to Buying Next Generation Consoles
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- Communication is key to easing stress of buying new consoles
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- Figure 60: Attitudes toward the challenges of buying new consoles, February 2021
- Purchase difficulties may not discourage potential console owners
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- Figure 61: Experience purchasing new consoles, February 2021
- Some cautious console buyers need to see other people’s praise
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- Figure 62: Cautiousness about new consoles, February 2021
Replacing Consoles
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- Old consoles hold value even when upgrades happen
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- Figure 63: Playing on old consoles vs upgrading to new ones, February 2021
- Players would rather game until their console breaks than sell early
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- Figure 64: Playing until a console breaks vs selling a used console, February 2021
Attitudes toward Console Gaming
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- A console rivalry exists, but PlayStation fans are a little more loyal
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- Figure 65: Loyalty and rivalry among console brands, by console brand owned, February 2021
- Community and social gameplay get stronger from 2020
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- Figure 66: Attitudes toward community and connected gameplay, December 2019 and February 2021
- The arrival of new consoles makes console gaming more important for Xbox, PlayStation players
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- Figure 67: The importance of console gaming, by console brand owned, February 2021
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 68: US console unit sales, by console, January 2020-February 2021
- Figure 69: US Nintendo console unit sales, 2013-20
- Figure 70: US PlayStation console unit sales, 2013-20
- Figure 71: US Xbox console unit sales, 2013-20
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Appendix – Correspondence Analysis
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- Methodology
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- Figure 72: Perceptions of console brands, February 2021
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- Figure 73: Correspondence analysis – Principal map – Perceptions of console brands, February 2021
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