Table of Contents
Issues in the Market
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- Main issues
- Abbreviations
Future Opportunities
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- Growing a longer tail
- Life as science fiction
Market in Brief
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- Gaming a truly mainstream pastime now…
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- Figure 1: Type of video game console owned, May 2010
- … but sales fall sharply in 2009
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- Figure 2: Video game and console market size, 2006-10
- Wii continues its dominance of the nation’s living rooms…
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- Figure 3: Video game consoles owned for personal use and when bought, May 2010
- … but can new controllers break its dominance of the casual market?
- The battle for second hand sales
- How much of a threat are mobile phones?
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- Figure 4: Attitudes towards portable consoles, by ownership, May 2010
- Media features are important – but mainly to the gaming hardcore
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- Figure 5: Activities using games console(s) in the last 12 months, May 2010
Internal Market Environment
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- Key points
- A new gaming boom…
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- Figure 6: Have console in home, 2006-09
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- Figure 7: Bought console in last 12 months, 2006-09
- … and software sales follow suit
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- Figure 8: Bought games in last 12 months, 2004-09
- Changing main user hints at the new gaming mentality
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- Figure 9: Main user of games, 2006-09
- Will a new audience extend a console’s lifecycle?
- Piracy levels differ hugely between platforms
- Turning to the courts
- New channels can help combat copyright infringement
- Moving to a network-based model
- Second-hand sales…
- … and “Project Ten Dollar”
- Charging for what was once free?
- Benefits go beyond encouraging exercise…
- … but there are still concerns over the impact of violent games
- Hostile media heightens fears
- The impact of mobile devices
Broader Market Environment
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- Key points
- A long, slow recovery…
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- Figure 10: GDP, PDI, consumer expenditure and savings, at current prices, 2005-15
- … hitting the casual market…
- … and changing purchasing patterns
- Publishers need to reflect changing age structure
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- Figure 11: Trends in the age structure of the UK population, 2005-15
- Sidestepping the spending cuts by appealing to new demographics
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- Figure 12: Forecast adult population trends, by lifestage, 2005-15
- Growth of broadband drives the move to downloadable content
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- Figure 13: Broadband penetration, by demographics, 2004-09
- A contributor to childhood obesity…
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- Figure 14: Proportion of children in England aged 2-15 who are overweight or obese, by gender, 1995-2008
- Figure 15: Assessment of who/what is responsible for children becoming overweight or obese, May 2010
- … or a solution?
Competitive Context
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- Key points
- Out-of-home leisure dominates
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- Figure 16: Frequency of taking part in leisure activities in free time on weekdays and weekends: Family lifestage vs all adults, September 2009
Strengths and Weaknesses
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- Figure 17: Video games market – SWOT analysis, 2010
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Who’s Innovating?
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- Key points
- Kinect and Move aim to reposition the 360 and PS3
- Kinect – potentially revolutionary?
- Move adds additional precision to motion-based gaming
- The DS goes 3D…
- … as does the PS3
- Microsoft looks for cross-platform capabilities
Market Size and Forecast
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- Key points
- Another tough year in 2010
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- Figure 18: Video game and console market size, 2006-10
- Software growing in importance
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- Figure 19: Hardware/software split in the video game and console market, 2006-10
Market Share
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- Key points
- The Wii continues to thrive
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- Figure 20: Video game consoles owned for personal use and when bought, May 2010
Companies and Products
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- Major players
- Nintendo of Europe
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- Figure 21: Nintendo Co Ltd consolidated results, 2009-10
- Sony Computer Entertainment
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- Figure 22: Sony Computer Entertainment UK results, 2008-09
- Microsoft
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- Figure 23: Microsoft Entertainment and Devices Division consolidated results, 2008-09
- Figure 24: Microsoft Entertainment and Devices Division consolidated interim results, 2009-10
- Alienware
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- Figure 25: Dell Inc consolidated results, 2009-10
- Figure 26: Dell Inc consolidated results, Q1 FY2010-11
- Electronic Arts
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- Figure 27: Electronic Arts Limited UK results, 2008-09
- Activision Blizzard
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- Figure 28: Activision Blizzard Inc consolidated results, 2008-09
- Figure 29: Activision Blizzard Inc consolidated results, Q1 FY2009-10
- Game Group
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- Figure 30: Game Group Plc UK & Ireland store portfolio, 2009-10
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- Figure 31: Game Group Plc consolidated results, 2009-10
Brand Elements
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- Key points
- Brand map
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- Figure 32: Attitudes towards and usage of video game console brands, June 2010
- Brand qualities of video games console brands
- Wii rules the roost, but Xbox 360, PS3 best for performance
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- Figure 33: Personalities of various video games console brands, June 2010
- Experience of video games console brands
- Wii most used, Sony brands least so
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- Figure 34: Consumer usage of various video games console brands, June 2010
- Brand consideration for video games console brands
- Wii and PS3 most considered
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- Figure 35: Consideration of various video games console brands, June 2010
- Brand satisfaction for video games console brands
- Performance PS3 marginally most excellent, PSP lags behind
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- Figure 36: Satisfaction with various video games console brands, June 2010
- Brand commitment to video games console brands
- Wii has highest loyalty, PSP loses users
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- Figure 37: Commitment to various video games console brands, June 2010
- Brand intentions for video games console brands
- Wii and PS3 outdo Xbox 360
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- Figure 38: Future usage intentions for various video games console brands, June 2010
- Brand recommendation for video games console brands
- Handhelds less recommended
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- Figure 39: Recommendation of various video games console brands, June 2010
- Xbox 360
- What the consumer thinks
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- Figure 40: Attitudes towards the Xbox 360 brand, June 2010
- PSP (PlayStation Portable)
- What the consumer thinks
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- Figure 41: Attitudes towards the PSP (PlayStation Portable) brand, June 2010
- Nintendo DS
- What the consumer thinks
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- Figure 42: Attitudes towards the Nintendo DS brand, June 2010
- PS3 (PlayStation 3)
- What the consumer thinks
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- Figure 43: Attitudes towards the PS3 (PlayStation 3) brand, June 2010
- Wii
- What the consumer thinks
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- Figure 44: Attitudes towards the Wii brand, June 2010
Brand Communication and Promotion
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- Key points
- Adspend predictable – and slowly nudging upwards
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- Figure 45: Video game adspend, by quarter, 2005-10
- Mass market product, mass market media
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- Figure 46: Video game adspend, by media type, 2010
- Nintendo spends three times as much as its nearest rival
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- Figure 47: Video games adspend, 2009-10
- Leading with the console, or with the games?
Channels to Market
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- Key points
- The rise and rise of digital distribution
- Valve dominates the PC download market
- Consoles increasing the revenue generated online
- The boxed/download interface
- The high street specialists are under pressure
Console Ownership
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- Key points
- Static consoles still lead the way
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- Figure 48: Type of video game console owned, May 2010
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- Figure 49: Type of video game console owned, by gender, age and socio-economic group, May 2010
- Nintendo’s wooing of the casual gamer reaps rewards
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- Figure 50: Video game consoles owned for personal use and when bought, May 2010
- The difference between ‘must-have’ and ‘nice-to-have’…
- … and the scope for cross-marketing
Gaming on the Move
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- Key points
- The rise of the mobile phone gamer
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- Figure 51: Attitudes towards portable consoles, by ownership, May 2010
- Younger people going mobile
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- Figure 52: Selected attitudes towards portable consoles, by age, May 2010
Game and Console Buying Behaviour
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- Key points
- Console buying
- A hunt for value – but people still prefer to buy new
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- Figure 53: Attitudes towards brand of static or portable console, May 2010
- It’s not all about the machine
- Careful shoppers, or creatures of habit?
- Game purchasing
- Signs of a price-conscious consumer…
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- Figure 54: Statements on buying games for a console, May 2010
- … and it’s still a market that’s driven by offline play
- Blood and guts a turn-off for non-traditional segments
Console Use
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- Key points
- Games still dominate usage…
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- Figure 55: Activities using games console(s) in the last 12 months, May 2010
- … but a third are starting to take advantage of new possibilities
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- Figure 56: Repertoire of activities using games console(s) in the last 12 months, May 2010
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- Figure 57: Activities using games console(s) in the last 12 months, by repertoire of activities using games console(s) in the last 12 months, May 2010
- PS3 gets closer to becoming a media hub
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- Figure 58: Activities using games console(s) in the last 12 months among static console owners, May 2010
- Microsoft and Sony driving digital distribution…
- … making the Wii even more important to high street retailers
Key Product Features
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- Key points
- Getting the basics right
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- Figure 59: Hardware features influencing purchase of a static games console, May 2010
- Demanding? Or “that will do”?
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- Figure 60: Number of hardware features influencing purchase of a static games console, May 2010
- The hardcore are looking for media features
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- Figure 61: Hardware features influencing purchase of a static games console, by repertoire of hardware features influencing purchase of a static games console, May 2010
- What does the split mean for the Kinect?
- Online gaming still most attractive to the gaming stalwarts
Appendix – Console Ownership
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- Figure 62: Most common console ownership, by demographics, May 2010
- Figure 63: Next most common console ownership, by demographics
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- Figure 64: Type of console owned, by demographics, May 2010
- Figure 65: Video game consoles owned for personal use and bought between 1 and 2 years ago, by demographics, May 2010
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- Figure 66: Video game consoles owned for personal use and bought between 2 and 4 years ago, by demographics, May 2010
- Figure 67: Video game consoles owned for personal use and bought more than four years ago, by demographics, May 2010
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Appendix – Game and Console Buying Behaviour
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- Figure 68: Most popular attitudes towards brand of static or portable console (any agree), by demographics, May 2010
- Figure 69: Next most popular attitudes towards brand of static or portable console (any agree), by demographics, May 2010
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- Figure 70: Most popular attitudes towards brand of static or portable console (any disagree), by demographics, May 2010
- Figure 71: Next most popular attitudes towards brand of static or portable console (any disagree), by demographics, May 2010
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- Figure 72: Most popular statements on buying games for a console, by demographics, May 2010
- Figure 73: Next most popular statements on buying games for a console, by demographics, May 2010
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Appendix – Key Product Features
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- Figure 74: Most popular hardware features influencing purchase of a static games console, by demographics, May 2010
- Figure 75: Next most popular hardware features influencing purchase of a static games console, by demographics, May 2010
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Appendix – Gaming on the Move
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- Figure 76: Most popular attitudes towards portable consoles, by demographics, May 2010
- Figure 77: Next most popular attitudes towards portable consoles, by demographics, May 2010
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Appendix – Console Use
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- Figure 78: Activities using games console(s) in the last 12 months, by demographics, May 2010
- Figure 79: Activities using games console(s) in the last 12 months, by demographics, May 2010
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