Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Hardware launches drive sales cycle
- New competition from the web and multifunction devices
- Software to fuel near-term sales
- Dedicated stores, web play key roles in sales and marketing
- Uncertain economy, aging population could retard sales
- PS3 not living up to competing seventh-generation consoles
- Gaming is for the young
- Purchase model prevails
- Gaming as a new way to socialize
Insights and Opportunities
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- The media hub for the home?
- New realities
- Staying in motion—and pushing back
- New revenue models
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- Figure 1: Teen and adult attitudes towards in-game advertising, by age, October 2007-December 2008
- Not just for kids
- It’s all about the accessories
Inspire Insights
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- Edutainment
- What it means for the market
- Medical Wellness
- What it means for the market
Market Size and Forecast
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- Key points
- Launches drive sales
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- Figure 2: Total U.S. sales and forecast of gaming hardware and software, at current prices, 2004-12
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- Figure 3: Total U.S. sales and forecast of gaming hardware and software, at inflation-adjusted prices, 2004-12
Competitive Context
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- Online games
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- Figure 4: Online entertainment usage, by age, February 2009
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- Figure 5: Online, MMORPG, and social networking game usage, by key demographics, March 2008
- PCs move from work to play
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- Figure 6: Use of video games on home PCs vs. consoles, by key demographics, April 2007-June 2008
- Gaming on the go
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- Figure 7: Ownership of handheld gaming devices and game play on MP3 players and cell phones, by age and HH income, October 2007-December 2008
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- Figure 8: Flight control iPhone game, image
Segment Performance
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- Key points
- Software to drive near-term revenues
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- Figure 9: U.S. sales of gaming products at current prices, by segment, 2006 and 2008
Segment Performance—Gaming Hardware
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- Key points
- Proprietary model drives prices
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- Figure 10: Pricing as of launch for major gaming consoles, 2000-06
- New functions could help drive sales
- Hardware sales and forecast
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- Figure 11: U.S. sales and forecast of gaming hardware, at current prices, 2004-12
- Figure 12: Total U.S. sales and forecast of gaming hardware, at inflation-adjusted prices, 2004-12
- New risks for portables
Segment Performance—Gaming Software
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- Key points
- Software sales roughly track console launches
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- Figure 13: Top 10 console games, by U.S. sales, 2008
- Figure 14: Rockstar Games’ Grand Theft Auto IV image
- Secondary market, competing platforms could dampen sales
- Software sales and forecast
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- Figure 15: U.S. sales and forecast of gaming software, at current prices, 2004-12
- Figure 16: Total U.S. sales and forecast of gaming software, at inflation-adjusted prices, 2004-13
- Growing the audience for gaming
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- Figure 17: Video games played, by genre, by age, October 2007-December 2008
Retail Channels
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- Gaming benefits from relatively broad distribution
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- Figure 18: Channels through which video games are purchased, 2008
- Secondary market plays an important role
- Downloads take hold
Market Drivers
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- The recession
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- Figure 19: U.S. unemployment, October 2008-June 2009
- Figure 20: Disposable personal income and personal consumption, October 2009-May 2009
- Households with children
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- Figure 21: Gaming hardware ownership, by children in household, October 2007-December 2008
- Empowered consumers seek control over content
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- Figure 22: Desire for video content storage and recall, by age, November 2008
- An aging U.S. population
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- Figure 23: Population, by age, 2004-14
- Health and safety concerns
Leading Companies
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- Key points
- Three players compete for hardware dominance
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- Figure 24: Gaming console ownership, by brand, October 2007-December 2008
- Software a wider but narrowing field
Brand Qualities
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- Electronic Arts
- Microsoft
- Nintendo
- Sony Electronics
Innovation and Innovators
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- Project Natal
- Spore
- WildTangent
Advertising and Promotion
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- Traditional advertising
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- Figure 25: Advertising spending, by leading gaming brands, 2007 and 2008
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- Figure 26: Advertising spending, by leading gaming software and retailer brands, 2007 and 2008
- In-store promotions and bundled/special-edition products
- Online marketing
- Licensing partnerships
- Television advertising
- Apple iPod touch
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- Figure 27: Apple iPod touch television ad, 2009
- Nintendo DS
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- Figure 28: Nintendo DS television ad, 2008
- Nintendo Wii Fit
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- Figure 29: Nintendo Wii Fit television ad, 2008
- Sony PlayStation 3
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- Figure 30: Sony PlayStation 3 television ad, 2008
Ownership
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- Age more relevant than income in determining usage
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- Figure 31: Trended ownership/usage of video game consoles and handheld devices, by key demographics, January 2006-October 2006 and October 2007-December 2008
- Gaming nearly universal among 9-14s
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- Figure 32: Ownership/usage of video games—kids/teens, by age and age/gender, January 2006-October 2006 and October 2007-December 2008
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- Figure 33: Ownership of handheld gaming devices—kids/teens, by age and age/gender, October 2007-December 2008
- PS2 still the most commonly owned console
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- Figure 34: Top 10 consoles/portables owned—adults, by gender, October 2007-December 2008
- PS2 dominates amongst 18-24s
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- Figure 35: Top 10 consoles/portables owned or played, by age, October 2007-December 2008
- Wii the only console for which penetration increases with household income
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- Figure 36: Top 10 consoles/portables owned or played, by HH income, October 2007-December 2008
- Kids take gaming to go
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- Figure 37: Top 10 consoles/portables owned or played—kids, by age and age/gender, October 2007-December 2008
- Interest in handhelds declines amongst teens
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- Figure 38: Top 10 consoles/portables owned/played—teens, by age and age/gender, October 2007-December 2008
Purchase Behavior
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- Average annual spend on video games—$63
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- Figure 39: Mean annual spend on video games, by gender, age, and HH income, March 2009
- Only two games purchased per year on average
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- Figure 40: Frequency of video game purchase/rental, by gender, age and HH income, October 2007-December 2008
- Borrowing and rental rare amongst younger kids
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- Figure 41: Kids’ attitudes towards purchasing/renting games, by age and age/gender, October 2007-December 2008
- Figure 42: Teen attitudes towards purchasing/renting games, by age and age/gender, October 2007-December 2008
- Women more likely to buy games as gifts than for themselves
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- Figure 43: Buying to play vs. gift purchases, by gender, age and HH income, March 2009
- Timing of purchase
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- Figure 44: Timing of new game purchases—adults, by age, October 2007-December 20008
- Teens buy early but not on day of release
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- Figure 45: Timing of new game purchases—teens, by age and gender/age, October 2007-December 20008
Usage Patterns
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- Xbox 360 owners most engaged
- Men play nearly twice as many hours as women
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- Figure 46: Hours of game play—adults, by gender, October 2007-December 2008
- 25-34 year olds spend most time gaming
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- Figure 47: Hours of game play—adults, by age, October 2007-December 2008
- Highest-income households spend less time gaming
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- Figure 48: Hours of game play—adults, by HH income, October 2007-December 2008
- Boys aged 9-11 the true gaming champions
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- Figure 49: Hours of game play—kids, by age and age/gender, October 2007-December 2008
- Children graduate from simpler platforms to more complex ones
- Games too solitary for teen girls
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- Figure 50: Hours of game play—teens, by age and age/gender, October 2007-December 2008
Games as Social Media
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- Console gaming typically more social than PC gaming
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- Figure 51: Who adults play games with, by platform, March 2009
- Men seeking to connect via gaming
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- Figure 52: Attitudes towards gaming with others, by gender, March 2009
- The younger the gamer, the more social the gamer
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- Figure 53: Attitudes towards gaming with others, by age, March 2009
- Social games for high-income households
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- Figure 54: Attitudes towards gaming with others, by HH income, March 2009
- Kids play alone or with peers—not with older/younger kids
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- Figure 55: Who kids play games with, by age and gender/age, October 2007-December 2008
- It’s a family affair, and especially so for women
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- Figure 56: Level of game play and social game play, by gender, March 2009
- 18-34 year olds most likely to game as a social activity
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- Figure 57: Level of game play and social game play, by age, March 2009
Avatars and Micro-transactions
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- Women virtually neck and neck with men
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- Figure 58: Gaming avatar usage and virtual gaming purchases, by gender, March 2009
- Youngest adults most keen on avatars and virtual purchases
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- Figure 59: Gaming avatar usage and virtual gaming purchases, by age, March 2009
Genres Played
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- Action/adventure still number one
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- Figure 60: Game genres played—adults, by gender, October 2007-December 2008
- Cards, casino games a good bet for seniors
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- Figure 61: Game genres played—adults, by age, October 2007-December 2008
- Action/adventure tops with kids
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- Figure 62: Game genres played—kids, by age and age/gender, October 2007-December 2008
- Interest in most genres declines among older teens
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- Figure 63: Game genres played—teens, by age and age/gender, October 2007-December 2008
Gaming and the Web
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- Incidence of game play connected to the web—adults and kids/teens
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- Figure 64: Incidence of game play while connected to the web—adults, by gender, age and HH income, October 2007-December 2008
- Kids and teens more likely to play games connected to the web
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- Figure 65: Incidence of game play while connected to the web—kids/teens, by age and gender/age, October 2007-December 2008
- Online console gaming behavior
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- Figure 66: Online console gaming behavior, by gender, March 2009
- Youngest adults most keen on web activities
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- Figure 67: Online console gaming behavior, by age, March 2009
Attitudes and Motivations
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- Self-perception as “hardcore” vs. “casual” gamers
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- Figure 68: Perceived game skill level, by age, March 2009
- Women want self-improvement, men like advertising
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- Figure 69: Attitudes toward newer elements of gaming, by gender, March 2009
- Improving dexterity and brain fitness popular across age groups
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- Figure 70: Attitudes toward newer elements of gaming, by age, March 2009
Gaming and Viral Marketing
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- Men more invested in viral marketing
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- Figure 71: Additional attitudes towards gaming—the impact of friends, by gender, March 2009
- 18-24s keen on spreading the word
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- Figure 72: Additional attitudes towards gaming—the impact of friends, by age, March 2009
Impact of Race/Hispanic Origin
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- Ownership and usage
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- Figure 73: Gaming on handheld gaming devices, MP3 players and cell phones, by race/Hispanic origin, March 2009
- Asians most keen on Wii
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- Figure 74: Top 10 gaming consoles/portables owned or played—adults, by race/Hispanic origin, October 2007-December 2008
- Blacks spend twice as much as Asians on games
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- Figure 75: Mean spend on video games, by race/Hispanic origin, March 2009
- Blacks and Hispanics buy and rent more games
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- Figure 76: Frequency of video game purchase/rental, by race/Hispanic origin, October 2007-December 2008
UGC
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- One in four give thumbs up to UGC gaming
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- Figure 77: Attitudes towards user-generated content in games, by gender, March 2009
- One in three 18-34s like UGC gaming
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- Figure 78: Attitudes towards user-generated content in games, by age, March 2009
Cluster Analysis
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- Core Gamers
- Who they are
- Opportunity
- Websters
- Who they are
- Opportunity
- Loners
- Who they are
- Opportunity
- Cluster characteristics
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- Figure 79: Gaming clusters, April 2009
- Figure 80: Methods of game play, by gaming clusters, April 2009
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- Figure 81: Engagement in gaming, by gaming clusters, April 2009
- Figure 82: Self-perception of engagement with games, and word-of-mouth marketing, by gaming clusters, April 2009
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- Figure 83: Interest in UGC, by gaming clusters, April 2009
- Figure 84: Spend, by gaming clusters, April 2009
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- Figure 85: Gaming attitudes and interests, by gaming clusters, April 2009
- Cluster demographics
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- Figure 86: Gaming clusters, by gender, April 2009
- Figure 87: Gaming clusters, by age, April 2009
- Figure 88: Gaming clusters, by HH income, April 2009
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- Figure 89: Gaming clusters, by race/Hispanic origin, April 2009
- Cluster methodology
Custom Consumer Groups
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- How console and handheld gaming hardware use the PC for gaming
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- Figure 90: Online/offline PC game usage, by dedicated gaming device ownership, October 2007-December 2008
- Sony lagging in getting installed base to purchase current console
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- Figure 91: Current gaming console ownership, by brand ownership, October 2007-December 2008
- Stereotypes about gender and age remain largely accurate
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- Figure 92: Methods and types of game play, by age and age/gender, October 2007-December 20008
- Young women play with family, young men on board avatars and connectedness
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- Figure 93: Attitudes towards game play and social gaming behavior, by age and gender, march 2009
- Young Hispanics most keen on mobile gaming
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- Figure 94: Methods and types of game play, by age and race/Hispanic origin, March 2009
Appendix: Survey Results for Online Teens
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- Figure 95: Dedicated gaming device ownership among teens, by age and gender, March 2009
- Figure 96: Gaming as a social activity among teens, by age and gender, March 2009
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- Figure 97: Avatars and micro-transactions among teens, by age and gender, March 2009
- Figure 98: PC gaming among teens, by age and gender, March 2009
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- Figure 99: Dedicated gaming handheld vs. cell phone gaming among teens, by age and gender, March 2009
- Figure 100: PC vs. console game play in the past month among teens, by age and gender, March 2009
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- Figure 101: Purchasing habits and word of mouth marketing among teens, by age and gender, March 2009
- Figure 102: Interest in UGC gaming, among teens, by age and gender, March 2009
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Appendix: Other Useful Consumer Tables
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- Gaming and types of games played
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- Figure 103: Incidence of handheld and cell phone gaming, by age and HH income, March 2009
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- Figure 104: Game genres played—adults, by HH income, October 2007-December 2008
- Genre preferences by race/Hispanic origin
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- Figure 105: Game genres played—adults, by race/Hispanic origin, October 2007-December 2008
- Asians more likely to play video games
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- Figure 106: Ownership/usage of video games, by race/Hispanic origin, October 2007-December 2008
Appendix: Trade Associations
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