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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- Current-generation consoles aging gracefully but nearing their end
- Game sales strongly tied to console sales and popular franchises
- Holiday season, new releases critical market drivers
- Gaming competition intensifies
- Three console companies and many publishers lead the way
- GameStop, Walmart and Best Buy are leading game retailers
- Advertising and marketing savvy
- Change is fast and furious
- Ancillary revenue opportunities
- Console gaming remains the domain of younger age groups
- Teens want their Wii U
- Six in 10 women gamers play fitness games
Insights and Opportunities
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- Advertising
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- Figure 1: North American* revenue from video game advertising, at current prices, 2006-15
- In-game purchasing and downloadable content
- Lowering up-front costs
- Serving the installed base
Inspire Insight
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- Inspire Trend: “Many Mes”
Market Size and Forecast
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- Key points
- Waiting for the next generation
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- Figure 2: U.S. sales to dealers of video game hardware and software, 2006-12
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- Figure 3: U.S. sales to dealers of video game hardware and software, at inflation-adjusted 2011 prices, 2006-12
Market Drivers
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- Key points
- The installed base
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- Figure 4: Americas’ video game sales per console unit, Q1-Q2 2011
- Franchises deliver
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- Figure 5: Americas’ best-selling games by franchise, 2011
- Holiday season
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- Figure 6: Americas’ Q4 sales of gaming hardware and software, and share of annual sales, 2010
Competitive Context
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- Key points
- Increasing competition from other platforms
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- Figure 7: Methods of gaming, teens and 18-24s, June 2011
- Figure 8: Total U.S. sales of phone/tablet games, at current prices, 2005-15
- Social Gaming
- Other entertainment expenditures
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- Figure 9: U.S. sales of video games, music, and movie tickets, 2009 and 2010
- Cost-saving alternatives to list price
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- Figure 10: Game related cost-saving efforts, adults by age, April 2010-December 2010
Segment Performance
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- Key points
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- Figure 11: Sales of video games to dealers, hardware vs. software, 2009-11
Segment Performance—Consoles
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- Key points
- Console sales down 33% from 2008
- Next-generation launch schedule murky
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- Figure 12: Total U.S. sales to dealers of home consoles, at current prices, 2006-12
Segment Performance—Games
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- Key points
- Hardcore and fitness titles battle it out
- Highly anticipated titles for the 2011 holiday season and beyond
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- Figure 13: Total U.S. sales to dealers of console games, at current prices, 2006-12
Retail Distribution
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- Key points
- GameStop, Walmart, and Best Buy lead game retailers
- GameStop the dominant retailer for young adults and teens
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- Figure 14: Where video games were purchased or rented in past three months, by age, May 2011
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- Figure 15: Where video games were purchased or rented in past three months, June 2011
- GameStop and teens
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- Figure 16: Use of GameStop, teens by gender and age, October 2009-December 2010
- GameFly: Try before you buy
- Digital distribution mostly for add-ons
- Loyalty through exclusive content
Leading Companies
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- Key points
- Nintendo first out with next-gen console
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- Figure 17: Americas’ unit sales of home consoles, by manufacturer, 2008 and 2010
- Game sales
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- Figure 18: Americas’ unit sales of console games (including handheld games), by publisher, 2008 and 2010
- Figure 19: Leading U.S. game titles, by publisher, 2011
Innovations and Innovators
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- Cross-platform play
- Activision adds social networking via subscription
- Wii U’s touch-screen controller
- Kinect hacks
- NVIDIA 3D Vision Surround Technology
Marketing Strategies
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- Television ads for games
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- Figure 20: Ubisoft—Assassin’s Creed: Brotherhood, TV ad, December 2010
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- Figure 21: EA Sports—Tiger Woods PGA Tour 12, TV ad, March 2011
- Figure 22: Ubisoft—Just dance 2, TV ad, April 2011
- Television ad for consoles
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- Figure 23: Microsoft Xbox 360—Children mimic animal poses and actions, TV ad, October 2010
- Figure 24: Sony PS3—Kevin Butler mocks man seeking Blu-ray player, TV ad, November 2010
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- Figure 25: Sony PS3 Move—Kevin Butler stays 90 days with the McGuire family, TV ad, September 2010
- Figure 26: Nintendo Wii—Jill’s parents come for holidays and only play video games, TV ad, November 2010
- Social networks as marketing tools
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- Figure 27: Fans/followers of games and gaming brands on Facebook & Twitter, July 2011
- Trailers, tournaments, tours, and more
Usage
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- Key points
- More than a third of adults play or own video games
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- Figure 28: Video game usage, adults by gender, April 2010-December 2010
- Generational differences
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- Figure 29: Video game usage, adults by age, April 2010-December 2010
- Teens
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- Figure 30: Video game usage, teens by gender and age, October 2009-December 2010
- Ownership/play correlates with household income
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- Figure 31: Video game usage, adults by household income, April 2010-December 2010
Platforms
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- Key points
- Over-45s more likely to play on platforms other than consoles
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- Figure 32: Methods of gaming, by age, May 2011
- Gamers play across platforms
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- Figure 33: Methods of gaming, by gaming method, May 2011
- Boys 12-14 most engaged with consoles
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- Figure 34: Methods of gaming used by teens, by gender and age, June 2011
- Consoles owned/played
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- Figure 35: Video game systems played, by gender, April 2010-December 2010
- Wii soars with 25-44s
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- Figure 36: Video game systems played, by age, April 2010-December 2010
Hardware Purchase Intent
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- Key points
- Consumers still buying current-generation consoles
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- Figure 37: Gaming hardware purchase intent, by age, May 2011
- Teens want Wii U
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- Figure 38: Gaming hardware desired by teens, June 2011
- Kinect and Move purchase intent
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- Figure 39: Ownership and interest in acquiring the PS Move, by age, May 2011
- Figure 40: Ownership and interest in acquiring the Microsoft Kinect, by age, May 2011
- Traditional interface vs. motion control
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- Figure 41: Preference for types of controllers, by gender, May 2011
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- Figure 42: Preference for types of controllers, by age, May 2011
- Kinect making greater headway than Move
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- Figure 43: Experience with Kinect and Move, by age, May 2011
- Figure 44: Experience with Kinect and Move, by gender, May 2011
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- Figure 45: Teen ownership and interest in acquiring a PS move, by gender, June 2011
- Figure 46: Teen ownership and interest in acquiring a Microsoft Kinect, June 2011
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- Figure 47: Kinect or Move play among teens, by gender and age, June 2011
Spend
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- Key points
- Amount of spend
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- Figure 48: Spend on gaming, by gender, May 2011
- Spend higher in households with children
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- Figure 49: Spend on gaming, by presence of children in household, May 2011
- Number of games purchased/rented
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- Figure 50: Purchased a game in last 12 months, by age, April 2010-December 2010
- Women buy/rent as many titles as men
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- Figure 51: Number of games purchased or rented, adults by gender, April 2010-December 2010
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- Figure 52: Number of games purchased, adults by age, April 2010-December 2010
- Boys 12-14 heaviest buyers
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- Figure 53: Number of games rented/purchased in last 12 months, teens by gender and age, October 2009-December 2010
- Gifting
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- Figure 54: Gift spend on game hardware/software, by age, May 2011
- Game gift-giving more prevalent among adults with children
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- Figure 55: Gift spend on game hardware/software, by presence of children in household, May 2011
- Gamers give game-related presents
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- Figure 56: Gift spend on game hardware/software, by type of games played, May 2011
- Most games teens own were given to them as gifts
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- Figure 57: Game purchasing habits, teens by gender and age, June 2011
Genre
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- Key points
- Sports and action/adventure most popular
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- Figure 58: Types of games played, by gender, April 2010-December 2010
- Genre preferences based on age
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- Figure 59: Types of games played, adults by age, April 2010-December 2010
- Fitness games played by about half of adult gamers
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- Figure 60: Fitness gaming, by age, May 2011
- Figure 61: Fitness gaming, by gender, May 2011
- Action/adventure favorite genres for teens
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- Figure 62: Type of games played in last six months, teens by gender and age, October 2009-December 2010
Purchasing Habits
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- Key points
- Men more active downloaders
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- Figure 63: Game purchasing habits, by gender, May 2011
- Youngest adults most frequent downloaders
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- Figure 64: Game purchasing habits, by age, May 2011
Connectivity
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- Key points
- Taking console gaming online still relatively uncommon
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- Figure 65: Incidence of playing consoles online, by age, April 2010-December 2010
- Figure 66: Incidence of playing consoles online, by gender, April 2010-December 2010
- Playing online province of teen boys
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- Figure 67: Incidence of playing consoles online, teens by gender and age, October 2009-December 2010
- Gaming sites visited by small but important share of adults
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- Figure 68: Use of gaming information websites in the last 30 days, by gender, April 2010-December 2010
- Figure 69: Use of gaming information websites in last 30 days, by age, April 2010-December 2010
Word of mouth and video chatting
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- Figure 70: Word of mouth and video chatting, by age, May 2011
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Product Placement
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- Key points
- Product placement viewed positively by large minority
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- Figure 71: Attitudes toward product placement in video games, by gender, May 2011
- Adults 18-24 feel most positive about in-game product placement
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- Figure 72: Attitudes toward product placement in video games, by age, May 2011
- Teens enamored of real-world brands in games
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- Figure 73: Attitudes toward product placement in video games among teens, by gender and age, June 2011
Kids and Gaming
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- Usage
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- Figure 74: Video game penetration, kids by gender and age, October 2009-December 2010
- Figure 75: Video game console owned or played, kids by gender and age, October 2009-December 2010
- Genre played
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- Figure 76: Types of video games played, kids by gender and age, October 2009-December 2010
- Number of games bought or received
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- Figure 77: Video games bought or received in past year, kids by gender and age, October 2009-December 2010
- Figure 78: Plan to buy or receive video games, kids by gender and age, October 2009-December 2010
Race/Hispanic Origin
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- Key points
- Usage
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- Figure 79: Methods of gaming, by race/Hispanic origin and age, May 2011
- Figure 80: Methods of gaming, teens by race/Hispanic origin, June 2011
- Hardware ownership and purchase intent
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- Figure 81: Gaming hardware and 3DTV owned or plan to buy, by race/Hispanic origin and age, May 2011
- PS Move and Kinect
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- Figure 82: Ownership and interest in acquiring the PS Move, by race/Hispanic origin, May 2011
- Figure 83: Ownership and interest in acquiring Microsoft Kinect, by race/Hispanic origin, May 2011
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- Figure 84: Kinect and Move gaming experience among teens, by race, June 2011
- Connectivity
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- Figure 85: Play video games on internet, adults by race/Hispanic origin, April 2010-December 2010
- Blacks, Hispanics buy more games
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- Figure 86: Number of games purchased or rented, adults by race/Hispanic origin, April 2010-December 2010
- Genre
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- Figure 87: Types of games played, adults by race/Hispanic origin, April 2010-December 2010
- Game acquisition among teens
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- Figure 88: Gaming acquisition among teens, by race, June 2011
- Attitudes toward product placement
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- Figure 89: Attitudes toward product placement in video games among teens, by race, June 2011
Custom Consumer Groups
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- Methods of gaming by age and gender
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- Figure 90: Methods of gaming, by gender and age, May 2011
- Ownership and purchase intent
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- Figure 91: Gaming hardware and 3DTV owned or plan to buy, by gender and age, May 2011
Cluster Analysis
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- Traditionals
- Characteristics
- Demographics
- Opportunity
- Fitness Gamers
- Characteristics
- Demographics
- Opportunity
- Savers
- Characteristics
- Demographics
- Opportunity
- Cluster characteristic tables
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- Figure 92: Console gaming clusters, May 2011
- Figure 93: Methods of gaming by console gaming clusters, May 2011
- Figure 94: Total spending on gaming in past three months, by console gaming clusters, May 2011
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- Figure 95: Gaming gift spending in past six months, by console gaming clusters, May 2011
- Figure 96: Attitudes toward video games, by console gaming clusters, May 2011
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- Figure 97: Attitudes to product placement, by console gaming clusters, May 2011
- Figure 98: Motion control vs. traditional control preference by console gaming clusters, May 2011
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- Figure 99: Game purchasing habits, by console gaming clusters, May 2011
- Figure 100: Hardware owned and intent to purchase hardware, by console gaming clusters, May 2011
- Cluster demographic tables
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- Figure 101: Console gaming clusters, by gender, May 2011
- Figure 102: Target clusters, by age, May 2011
- Figure 103: Console gaming clusters, by household income, May 2011
- Figure 104: Console gaming clusters, by race, May 2011
- Figure 105: Console gaming clusters, by Hispanic origin, May 2011
- Cluster methodology
Appendix: Other Useful Tables
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- Figure 106: Game related cost-saving efforts, by household income, April 2010-December 2010
- Figure 107: Attitudes toward motion controllers, by household income, May 2011
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- Figure 108: Gift spending on video game hardware/software, by race/Hispanic origin, May 2011
- Figure 109: Attitudes toward video games, by presence of children in household, May 2011
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- Figure 110: Attitudes toward product placement in video games, by presence of children in household, May 2011
- Figure 111: Attitudes and opinions about brand names in video games, by age, April 2010-December 2010
- Figure 112: Attitudes and opinions about brand names in video games, by household income, April 2010-December 2010
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Appendix: Trade Associations
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