Table of Contents
Introduction
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- Definition
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Forecast value of UK console sales, 2006-16
- Figure 2: Consumers who have purchased a next generation console in the past 12 months, 2007-11
- Market factors
- Growth of atypical market set to continue between 2011-16
- Increased functionality becoming more important for consumer electronics
- Strong software sales necessary to maintain interest in peripherals
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- Figure 3: Ownership of peripherals, July 2011
- The consumer
- Console ownership
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- Figure 4: Ownership of consoles, July 2011
- Peripheral ownership
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- Figure 5: Ownership of peripherals, July 2011
- Play time
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- Figure 6: Console owning consumers, by gamer type, July 2011
- Activities performed on a console
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- Figure 7: Activities performed on a console, July 2011
- Important factors in purchasing a new console
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- Figure 8: Important factors in purchasing a new console, July 2011
- Attitudes towards console activity
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- Figure 9: Attitudes towards consoles and gaming, July 2011
- Targeting opportunities
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- Figure 10: Target groups, July 2011
- What we think
Issues in the Market
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- How can console manufacturers convince consumers to purchase ageing consoles?
- Can traditional consoles steal some of the broader gaming consumer base initially lured in by the Wii?
- Can console-based streaming internet services see greater growth?
- Are traditional gaming controls a dying breed?
Future Opportunities
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- Inspire Insights
- Trend: Experience is all
- Trend: Make it mine
Internal Market Environment
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- Key points
- Family-oriented entertainment proves itself a success
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- Figure 11: Purchase of consoles in the last 12 months, 2010-11
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- Figure 12: Frequency of playing video games or consoles on weekdays and weekends, by family lifestage and by all adults, September 2009
- High definition graphical output now an expected feature
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- Figure 13: Ownership of HDTVs, April 2009-April 2011
- Sony retrofits old games with new graphics
- Popularity of tablets reflected in new console offerings
- Smartphones and portable media players encroach on portable console territory
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- Figure 14: Smartphone ownership, April 2009-August 2011
- Full-body-control solutions sell well, but are let down by software…
- … although it is popular with homebrew solutions
- Manufacturers move to accommodate broader social network use
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- Figure 15: Numbers of social networks ever used, March 2011
- Scope for piracy increased as Sony sues hacking group
- Difficult economic climate prompts a cut in R&D
- Positioning of the Wii as ‘must have toy’ prompts new Nintendo console
Broader Market Environment
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- Key points
- Slow economic recovery and price discounts will aid sales
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- Figure 16: GDP, PDI, consumer expenditure and savings, at current prices, 2006-16
- Appealing to atypical consumers widens available market
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- Figure 17: Forecast adult population trends, by lifestage, 2006-16
- Online console services to reach a wider audience
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- Figure 18: Broadband penetration, 2006-11
- Increase of 25-34s will require more multifunctional devices
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- Figure 19: Trends in the age structure of the UK population, 2006-16
Competitive Context
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- Key points
- Cinema attendance high, regardless of financial situation
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- Figure 20: Frequency of cinema-going, by current financial situation, February 2011
- Book sales suffer, but reading frequency increases
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- Figure 21: Any hardback or paperback purchaser in the last 12 months, 2006-10
- Figure 22: UK total sales of books, by value, 2005-10
- Television viewership also on the rise
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- Figure 23: Hours of viewership of television per head, per day, in the UK, 2005-10
Who’s Innovating?
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- Key points
- Sifteo
- Wii U Tablet
- The PlayStation Vita
- Industry leaders predict strong growth for 3D
Market Size and Forecast
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- Key points
- Market decline will see a gentler fall in 2011
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- Figure 24: UK sales of consoles, by value, 2006-11
- Microsoft and Sony products maintain steady interest
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- Figure 25: Next-generation consoles (fixed and portable) purchased by consumers in the past 12 months, 2007-11
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- Figure 26: Consumers who have in the house or who have purchased a Nintendo Wii, PlayStation, PlayStation 2, PlayStation 3, Xbox, or Xbox 360 in the last 12 months, 2007-11
- Microsoft global performance
- Sony global performance
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- Figure 27: Sales of PSP units worldwide, 2009-11
- Nintendo global performance
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- Figure 28: Worldwide like-for-like shipped fixed consoles, Q2 2010 and Q2 2011
- New Sony and Microsoft consoles expected to arrive in 2014
- Market forecast
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- Figure 29: Forecast value of UK console sales, 2006-16
Market Segmentation
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- Key points
- Fixed consoles outsell portable units
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- Figure 30: Total console market share (%), by value, 2010
- Microsoft leads in volume sales, but Sony equals its value share
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- Figure 31: Percentage of next generation fixed console sales in the UK, by volume, 2010
- Figure 32: Percentage of next generation fixed console sales in the UK, by value, 2010
- Figure 33: Percentage of next generation portable console sales in the UK, by volume, 2010
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- Figure 34: Percentage of next generation portable console sales in the UK, by value, 2010
- Nintendo consoles the most widely-owned in-home
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- Figure 35: Consoles owned in the home, 2007-11
- Figure 36: consoles purchased in the last 12 months, 2007-11
Companies and Products
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- Microsoft
- Sony
- Nintendo
Brand Communication and Promotion
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- Key points
- Higher adspend pays off for Kinect
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- Figure 37: Ad-spend: Microsoft Kinect vs PlayStation Move, by Advertiser, Jun 2010-Jun 2011
- Adspend in general increases into 2011
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- Figure 38: Console manufacturer adspend (for consoles and games) in the UK, 2010-11
- Nintendo outspend competitors
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- Figure 39: Console and game related adspend for Nintendo, Microsoft and Sony, 2010-11
- TV garners almost 8/10ths of all adspend
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- Figure 40: Adspend for consoles and peripherals, by medium, Jan-Sep 2011
Console Ownership
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- Key points
- Two out of three next generation consoles fail to match popularity of old favourite
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- Figure 41: Console ownership, July 2011
- Offspring more likely to own Xbox 360
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- Figure 42: Next generation console ownership either owned, or have in the home, July 2011
- Ownership trends not encouraging for 3DS
- Young professionals most likely to purchase the PS3
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- Figure 43: Consumers who do not currently own a console but who plan to purchase one, by age, July 2011
- Wii still most potentially popular with retirees
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- Figure 44: Ownership of consoles, by employment demographic, July 2011
- Figure 45: Consumers who do not own a console but who intend to purchase one, by employment demographic, July 2011
- Multiple console ownership show scope for ‘trade ins’
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- Figure 46: Ownership of consoles (side), by ownership of consoles (top), July 2011
- Nintendo devices show greatest popularity across all gamer types
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- Figure 47: Fixed console ownership, by player type, July 2011
- Figure 48: Portable console ownership, by player type, July 2011
Peripheral Ownership
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- Key points
- Practical peripherals most popular
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- Figure 49: Peripheral ownership, July 2011
- Future purchase trends differ from ownership
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- Figure 50: Ownership of peripherals, July 2011
- Figure 51: Consumers who do not currently own, but intend to purchase a peripheral, July 2011
- Peripheral sales potential
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- Figure 52: Ownership of peripherals, by those who own headsets and microphones, July 2011
Play Time
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- Key points
- Over half of console owners identify as casual gamers
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- Figure 53: Console owning consumers, by gamer type, July 2011
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- Figure 54: Membership of gaming groups, by age demographic, July 2011
- Income has little influence on gamer type
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- Figure 55: Membership of gaming groups, by employment status, July 2011
- Figure 56: Membership of gaming groups, by gross annual household income, July 2011
Activities Performed on a Console
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- Key points
- Console use for non-gaming activity remains steady
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- Figure 57: Activities consumers perform on consoles, July 2011
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- Figure 58: Participation of nongame related activities on consoles in the last 12 months, 2010-11
- Investment in online gaming networks helps retain core following
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- Figure 59: Participation in online game related activities within the last 12 months, 2010-11
- Xbox 360 marginally more social console
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- Figure 60: Activities performed on a fixed or portable console in the last 12 months, by PS3 and Xbox 360 ownership, July 2011
- Demographic trends conform to typical patterns
- Purchasers of game downloads are console-based social networkers
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- Figure 61: activities performed on a console, by those who buy game downloads, July 2011
Important Factors in Purchasing a Console
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- Key points
- Games still most important factor in console purchases
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- Figure 62: Features desired on a console, July 2011
- Affluent consumers concerned with newer technology
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- Figure 63: Desire for online gaming facilities, download services or Blu-ray disc/DVD compatibility in a new console, by annual household income, July 2011
- Widest audience looking for cross-platform machines
Attitudes Towards Consoles and Gaming
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- Key points
- Widest appeal games are lightweight and social
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- Figure 64: Consumer attitudes towards consoles and gaming, July 2011
- Consumers tempted by money saving deals or offers
- Tendency to purchase online crosses formats
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- Figure 65: Attitudes towards console gaming, by consumers who purchase a game, television or film download, July 2011
Targeting Opportunities
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- Key points
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- Figure 66: Target groups, July 2011
- Patient Players
- Key characteristics
- Who are they?
- Marketing message
- Cutting Edgers
- Key characteristics
- Who are they?
- Marketing message
- The Casually Specifics
- Key characteristics
- Who are they?
- Marketing message
Appendix – Internal Market Environment
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- Figure 67: Ownership or purchase of portable and static games consoles in the last 12 months, 2007-11
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Appendix – Market Size and Forecast
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- Figure 68: Video game console market forecast, 2006-16
- Figure 69: Best and worst case video game console market forecasts, 2011-16
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Appendix – Console Ownership
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- Figure 70: Console ownership, July 2011
- Figure 71: Console ownership, by most frequently owned peripherals, July 2011
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- Figure 72: Console ownership, by next most frequently owned peripherals, July 2011
- Figure 73: Console ownership, by peripherals with the highest consumer intent to purchase, July 2011
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- Figure 74: Console ownership, by peripherals with the next highest consumer intent to purchase, July 2011
- Figure 75: Console ownership, by time spent playing video games, July 2011
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- Figure 76: Desire to purchase consoles, by time spent playing video games, July 2011
- Figure 77: Console ownership by purchase date, by time spent playing video games, July 2011
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- Figure 78: Console ownership, by the activities most frequently performed on a console, July 2011
- Figure 79: Console ownership, by activities next most frequently performed on a console, July 2011
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- Figure 80: Console ownership, by activities least frequently performed on a console, July 2011
- Figure 81: Console ownership, by most popular important factors when purchasing a console, July 2011
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- Figure 82: Console ownership, by next most popular important factors when purchasing a console, July 2011
- Figure 83: Console ownership, by least popular important factors when purchasing a console, July 2011
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- Figure 84: Console ownership, by consumer attitudes with the highest response, July 2011
- Figure 85: Console ownership, by consumer attitudes with the next highest response, July 2011
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- Figure 86: Console ownership, by consumer attitudes with the least response, July 2011
- Figure 87: PlayStation 2 ownership, by demographics, July 2011
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- Figure 88: PlayStation 3 ownership, by demographics, July 2011
- Figure 89: Xbox ownership, by demographics, July 2011
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- Figure 90: Xbox 360 ownership, by demographics, July 2011
- Figure 91: Nintendo Wii ownership, by demographics, July 2011
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- Figure 92: PSP ownership, by demographics, July 2011
- Figure 93: Nintendo DS or DSi (includes DSi XL) ownership, by demographics, July 2011
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- Figure 94: Nintendo 3DS ownership, by demographics, July 2011
- Figure 95: GameBoy ownership, by demographics, July 2011
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- Figure 96: Intent to purchase a yet to be released portable console (such as the PS Vita), by demographics, July 2011
- Figure 97: Intent to purchase a non-portable console (such as the Wii U), by demographics, July 2011
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Appendix – Peripheral Ownership
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- Figure 98: Peripheral ownership, July 2011
- Figure 99: Peripheral ownership, by peripherals with the highest ownership level, July 2011
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- Figure 100: Peripheral ownership, by peripherals with the next highest ownership level, July 2011
- Figure 101: Peripherals which consumers do not own but intend to buy, by the most frequently owned peripherals, July 2011
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- Figure 102: Peripherals which consumers do not own but intend to buy, by the next most frequently owned peripherals, July 2011
- Figure 103: Time spent playing video games, by most frequently owned peripherals, July 2011
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- Figure 104: Time spent playing video games, by peripherals with the next highest levels of ownership, July 2011
- Figure 105: Time spent playing video games, by the most popular peripherals that are not currently owned, but which consumers intend on purchasing, July 2011
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- Figure 106: Time spent playing video games, by the next most popular peripherals that are not currently owned but which consumers intend on purchasing, July 2011
- Figure 107: Activities consumers perform on consoles, by Microsoft Kinect (for Xbox 360) ownership, July 2011
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- Figure 108: Activities consumers perform on consoles, by PlayStation Move ownership, July 2011
- Figure 109: Activities consumers perform on consoles, by Nintendo Wii Remote plus ownership, July 2011
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- Figure 110: Activities consumers perform on consoles, by Nintendo Wii ‘game enhancers’ ownership, July 2011
- Figure 111: Activities consumers perform on consoles, by dance mat ownership, July 2011
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- Figure 112: Activities consumers perform on consoles, by health or fitness aid ownership, July 2011
- Figure 113: Activities consumers perform on consoles, by headset and microphone ownership, July 2011
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- Figure 114: Activities consumers perform on consoles, by webcam ownership, July 2011
- Figure 115: Activities consumers perform on consoles, by keyboard ownership, July 2011
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- Figure 116: Important factors when purchasing a console, by Microsoft Kinect (for Xbox 360) ownership, July 2011
- Figure 117: Important factors when purchasing a console, by PlayStation Move ownership, July 2011
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- Figure 118: Important factors when purchasing a console, by Nintendo Wii Remote plus ownership, July 2011
- Figure 119: Important factors when purchasing a console, by Nintendo Wii ‘game enhancers’ ownership, July 2011
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- Figure 120: Important factors when purchasing a console, by dance mat ownership, July 2011
- Figure 121: Important factors when purchasing a console, by health or fitness aid ownership, July 2011
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- Figure 122: Important factors when purchasing a console, by headset and microphone ownership, July 2011
- Figure 123: Important factors when purchasing a console, by webcam (for online gaming with consoles) ownership, July 2011
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- Figure 124: Important factors when purchasing a console, by keyboard (for online gaming with consoles) ownership, July 2011
- Figure 125: Attitudes towards consoles and gaming, by Microsoft Kinect (for Xbox 360) ownership, July 2011
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- Figure 126: Attitudes towards consoles and gaming, by PlayStation Move ownership, July 2011
- Figure 127: Attitudes towards consoles and gaming, by Nintendo Wii Remote plus ownership, July 2011
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- Figure 128: Attitudes towards consoles and gaming, by Nintendo Wii ‘game enhancers’ ownership, July 2011
- Figure 129: Attitudes towards consoles and gaming, by dance mat ownership, July 2011
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- Figure 130: Attitudes towards consoles and gaming, by health or fitness aid ownership, July 2011
- Figure 131: Attitudes towards consoles and gaming, by headset and microphone ownership, July 2011
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- Figure 132: Attitudes towards consoles and gaming, by webcam ownership, July 2011
- Figure 133: Attitudes towards consoles and gaming, by keyboard ownership, July 2011
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- Figure 134: Microsoft Kinect (for Xbox 360) ownership, by demographics, July 2011
- Figure 135: PlayStation Move ownership, by demographics, July 2011
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- Figure 136: Nintendo Wii Remote Plus ownership, by demographics, July 2011
- Figure 137: Nintendo Wii ‘game enhancers’ ownership, by demographics, July 2011
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- Figure 138: Dance mat ownership, by demographics, July 2011
- Figure 139: Health or fitness aid ownership, by demographics, July 2011
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- Figure 140: Headset and microphone ownership, by demographics, July 2011
- Figure 141: Webcam ownership, by demographics, July 2011
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- Figure 142: Keyboard ownership, by demographics, July 2011
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Appendix – Playtime
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- Figure 143: Time spent playing video games, July 2011
- Figure 144: Console ownership, by time spent playing video games, July 2011
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- Figure 145: Peripheral ownership, by time spent playing video games, July 2011
- Figure 146: Time spent playing video games, by demographics, July 2011
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Appendix – Activities Performed On A Console
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- Figure 147: Activities consumers perform on consoles, July 2011
- Figure 148: Console ownership, by most frequently performed activities on consoles, July 2011
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- Figure 149: Console ownership, by next most frequently performed activities on consoles, July 2011
- Figure 150: Console ownership, by least frequently performed activities on consoles, July 2011
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- Figure 151: Peripheral ownership, by most frequently performed activities on consoles, July 2011
- Figure 152: Peripheral ownership, by next most frequently performed activities on consoles, July 2011
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- Figure 153: Peripheral ownership, by least frequently performed activities on consoles, July 2011
- Figure 154: Time spent playing video games, by most frequently performed activities on consoles, July 2011
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- Figure 155: Time spent playing video games, by next most frequently performed activities on consoles, July 2011
- Figure 156: Time spent playing video games, by least most frequently performed activities on consoles, July 2011
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- Figure 157: Activities consumers perform on consoles, by most frequently performed activities on consoles, July 2011
- Figure 158: Activities consumers perform on consoles, by next most frequently performed activities on consoles, July 2011
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- Figure 159: Activities consumers perform on consoles, by least frequently performed activities on consoles, July 2011
- Figure 160: Important factors when purchasing a console, by most frequently performed activities on consoles, July 2011
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- Figure 161: Important factors when purchasing a console, by next most frequently performed activities on consoles, July 2011
- Figure 162: Important factors when purchasing a console, by least frequently performed activities on consoles, July 2011
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- Figure 163: Attitudes towards consoles and gaming, by most frequently performed activities on consoles, July 2011
- Figure 164: Attitudes towards consoles and gaming, by next most frequently performed activities on consoles, July 2011
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- Figure 165: Attitudes towards consoles and gaming, by least frequently performed activities on consoles, July 2011
- Figure 166: Most frequently performed activities on consoles, by demographics, July 2011
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- Figure 167: Next most frequently performed activities on consoles, by demographics, July 2011
- Figure 168: least frequently performed activities on consoles, by demographics, July 2011
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Appendix – Important Factors when Purchasing a Console
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- Figure 169: Important factors when purchasing a console, July 2011
- Figure 170: Console ownership, by most important factors when purchasing a console, July 2011
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- Figure 171: Console ownership, by next most important factors when purchasing a console, July 2011
- Figure 172: Console ownership, by least important factors when purchasing a console, July 2011
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- Figure 173: Peripheral ownership, by most Important factors when purchasing a console, July 2011
- Figure 174: Peripheral ownership, by next most important factors when purchasing a console, July 2011
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- Figure 175: Peripheral ownership, by least important factors when purchasing a console, July 2011
- Figure 176: Time spent playing video games, by most important factors when purchasing a console, July 2011
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- Figure 177: Time spent playing video games, by next most important factors when purchasing a console, July 2011
- Figure 178: Time spent playing video games, by least important factors when purchasing a console, July 2011
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- Figure 179: Activities consumers perform on consoles, by most important factors when purchasing a console, July 2011
- Figure 180: Activities consumers perform on consoles, by next most important factors when purchasing a console, July 2011
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- Figure 181: Activities consumers perform on consoles, by least important factors when purchasing a console, July 2011
- Figure 182: Important factors when purchasing a console, by most important factors when purchasing a console, July 2011
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- Figure 183: Important factors when purchasing a console, by next most important factors when purchasing a console, July 2011
- Figure 184: Important factors when purchasing a console, by least important factors when purchasing a console, July 2011
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- Figure 185: Attitudes towards consoles and gaming, by most Important factors when purchasing a console, July 2011
- Figure 186: Attitudes towards consoles and gaming, by next most important factors when purchasing a console, July 2011
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- Figure 187: Attitudes towards consoles and gaming, by least important factors when purchasing a console, July 2011
- Figure 188: Most important factors when purchasing a console, by demographics, July 2011
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- Figure 189: Next most important factors when purchasing a console, by demographics, July 2011
- Figure 190: Least important factors when purchasing a console, by demographics, July 2011
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Appendix – Attitudes Towards Consoles and Gaming
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- Figure 191: Attitudes towards consoles and gaming, July 2011
- Figure 192: Console ownership, by most popular attitudes towards consoles and gaming, July 2011
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- Figure 193: Console ownership, by next most popular attitudes towards consoles and gaming, July 2011
- Figure 194: Console ownership, by least popular attitudes towards consoles and gaming, July 2011
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- Figure 195: Peripheral ownership, by most popular attitudes towards consoles and gaming, July 2011
- Figure 196: Peripheral ownership, by next most popular attitudes towards consoles and gaming, July 2011
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- Figure 197: Peripheral ownership, by least popular attitudes towards consoles and gaming, July 2011
- Figure 198: Time spent playing video games, by most popular attitudes towards consoles and gaming, July 2011
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- Figure 199: Time spent playing video games, by next most popular attitudes towards consoles and gaming, July 2011
- Figure 200: Time spent playing video games, by least popular attitudes towards consoles and gaming, July 2011
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- Figure 201: Activities consumers perform on consoles, by most popular attitudes towards consoles and gaming, July 2011
- Figure 202: Activities consumers perform on consoles, by next most popular attitudes towards consoles and gaming, July 2011
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- Figure 203: Activities consumers perform on consoles, by least popular attitudes towards consoles and gaming, July 2011
- Figure 204: Important factors when purchasing a console, by most popular attitudes towards consoles and gaming, July 2011
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- Figure 205: Important factors when purchasing a console, by next most popular attitudes towards consoles and gaming, July 2011
- Figure 206: Important factors when purchasing a console, by least popular attitudes towards consoles and gaming, July 2011
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- Figure 207: Attitudes towards consoles and gaming, by most popular attitudes towards consoles and gaming, July 2011
- Figure 208: Attitudes towards consoles and gaming, by next most popular attitudes towards consoles and gaming, July 2011
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- Figure 209: Attitudes towards consoles and gaming, by least popular attitudes towards consoles and gaming, July 2011
- Figure 210: Most popular attitudes towards consoles and gaming, by demographics, July 2011
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- Figure 211: Next most popular attitudes towards consoles and gaming, by demographics, July 2011
- Figure 212: Least popular attitudes towards consoles and gaming, by demographics, July 2011
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Appendix – Targeting Opportunities
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- Figure 213: Time spent playing video games, by target groups, July 2011
- Figure 214: Attitudes towards consoles and gaming, by target groups, July 2011
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- Figure 215: Target groups, by demographics, July 2011
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