Table of Contents
Scope and Themes
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- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
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- Figure 1: U.S. home console unit sales, 2007-17
- Market factors
- The console cycle and game sales
- Teenage boys and young men still core
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- Figure 2: Teens’ viewpoints on video games as entertainment, by gender and age, October 2010-November 2011
- Mobile and social gaming pose threat
- Leading companies
- GameStop, Walmart, and Best Buy leading retailers
- Microsoft, Nintendo, and Sony fight it out
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- Figure 3: North American lifetime unit market share for current-generation consoles, August 2012
- Activision, Microsoft, and Nintendo leading publishers
- The consumer
- Adult ownership/play declines; teens and kids remain steady
- More gamers spending same or less time playing console games this year
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- Figure 4: Change in time playing console games, this year versus last, by age, June 2012
- Genre preferences differ based on age and gender
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- Figure 5: Kids’ main video game genre preferences, by gender, October 2010-November 2011
- Online networks affiliated with each console increasingly important
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- Figure 6: Online service activities for game consoles, by gender and age, June 2012
- Significant interest in next-generation consoles
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- Figure 7: Next-generation console purchase intent, by console, June 2012
- What we think
Issues in the Market
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- Can console gaming retain casual gamers as customers?
- How much longer can the blockbuster franchises thrive?
- Can the $60 price point survive?
- Will consumers be willing to buy a dedicated gaming device?
- Will the next-generation consoles be successful?
Insights and Opportunities
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- Leveraging the young man’s Facebook
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- Figure 8: Online service activities on games console, by gender and age, June 2012
- Games as therapy
- Advertising
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- Figure 9: North America forecast revenue from video game advertising, at current prices, 2011-15
- Brand extensions and licensing
- Companion apps
- Serving the installed base
Trend Application
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- Inspire trend: Who are the Joneses?
- Inspire trend: The Nouveau Poor
- Inspire 2015 trends
- Brand Intervention
Market Size and Forecast
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- Key points
- Anticipation for next-generation console launches
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- Figure 10: Total U.S. unit sales of home gaming console hardware, 2007-17
- Game sales growth dependent on blockbusters
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- Figure 11: Total U.S. unit sales of console games, 2007-17
Market Drivers
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- Key points
- Installed base
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- Figure 12: North America video game sales per for console unit as of Aug. 25, 2012
- Hits
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- Figure 13: North Americas’ best-selling games by franchises for current-generation consoles, as of Aug. 25, 2012
- Holiday sales and new releases
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- Figure 14: North Americas’ sales of Wii, Xbox 360, and PS3, Jan-Sept and Q4 sales and share of annual sales, 2011
- New releases
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- Figure 15: U.S. preorders of selected game titles, to week ending Sept. 15, 2012
- Boys to men
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- Figure 16: Attitudes toward video games as entertainment and relative spend vs. music and movies, teens and adults, by gender and age, January 2011-March 2012
- Figure 17: Video game genre preferences, teens and adults by gender and age, January 2011-March 2012
Competitive Context
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- Key points
- Mobile and social gaming coming on strong
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- Figure 18: Console game ownership, purchase intent and device play, June 2012
- Mobile gaming
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- Figure 19: Total U.S. sales of mobile games at current prices, 2006-16
- Social gaming
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- Figure 20: Incidence of gameplay, by platform, July 2011
- Competition for the casual gamer is stiff
- Teens (boys) gravitate to video games
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- Figure 21: Attitudes toward video games as a main source of entertainment, and spend vs. music/movies,, February 2007-March 2012
- Figure 22: Teens’ attitudes toward video games as a main source of entertainment, and spend vs. music/movies, January 2007-November 2011
- Cost-saving alternatives to list price
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- Figure 23: Attitudes toward video game acquisition, waiting till cheaper, borrowing or renting, February 2007-March 2012
Source of Purchases
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- Key points
- GameStop, Walmart, and Best Buy lead the way
- Brick-and-mortar retailers have significant online presence
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- Figure 24: Video game acquisition, purchase, rental, or trade, by retailer, June 2012
- Digital distribution provides ancillary revenue
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- Figure 25: Use of online game subscription for content download, by type of download, by gender and age, June 2012
- Loyalty through exclusive content
Leading Companies
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- Key points
- Nintendo Wii purchases collapse as customers await the Wii U
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- Figure 26: U.S. unit sales of home consoles, by manufacturer, 2009-11 and total lifetime ytd
- Game sales
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- Figure 27: Sales of U.S. leading publishers of top 100 games, by publisher, 2011
- Figure 28: Sales of select leading U.S. titles, by publisher, 2011
Innovations and Innovators
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- Sony Computer Entertainment, Microsoft, and Nintendo
- Valve Corporation
- Business model concepts
- Free-to-play games
- Subscriptions
- Quantic Dream
- Xbox SmartGlass
Marketing Strategies
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- Key points
- Overview
- Television ads
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- Figure 29: Microsoft—Halo 4, television ad, June 2012
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- Figure 30: EA Sports—Madden NFL 13, television ad, August 2012
- Figure 31: EA Sports—Tiger Woods PGA Tour 13, television ad, March 2012
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- Figure 32: Activision—Transformers: Fall of Cybertron, television ad, August 2012
- Figure 33: Microsoft—Kinect Star Wars, television ad, March 2012
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- Figure 34: Electronic arts—EA Sports Arena, television ad, August 2012
- Social media
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- Figure 35: Selected console games’/companies’ Facebook, Twitter, and YouTube likes, followers, subscribers, October 2012
- Gaming sites
- Other marketing initiatives
Usage
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- Key points
- Fewer adults own or play video games today than in 2007
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- Figure 36: Video game ownership or play, February 2007-March 2012
- Teen ownership/play as strong as ever
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- Figure 37: Video game ownership or play by teens, January 2007-November 2011
- Adults aged 45+ are still not gamers
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- Figure 38: Video game ownership or play, by age, January 2011-March 2012
- Video game ownership/play correlates with income
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- Figure 39: Video game ownership or play, by household income, January 2011-March 2012
Current-generation Console Ownership
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- Key points
- Nintendo Wii the generation winner
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- Figure 40: Video game ownership/play by console type, February 2007-March 2012
- Wii won over women
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- Figure 41: Video game ownership/play by console type, by gender, January 2011-March 2012
- Youngest adults favor Xbox 360, all others the Wii
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- Figure 42: Video game ownership/play by console type, by age, January 2011-March 2012
- Teens play Wii; Xbox 360 strong
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- Figure 43: Teen video game play, by console type, January 2007-November 2011
- Teens aged 12-14 flock to the Wii; older teen boys like the Xbox 360
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- Figure 44: Teen video gameplay by console type, by gender and age, October 2010-November 2011
Gaming by Platform
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- Key points
- Consoles and PCs are still the most popular gaming platforms
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- Figure 45: Devices used to play games in the last month, by age, June 2012
- Households with children most likely to play console games
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- Figure 46: Devices used to play games in the last month, by presence of children in household, June 2012
Hours of Game Play
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- Key points
- Signs of fatigue
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- Figure 47: Hours of video game play in past week, by console, February 2007-March 2012
- Xbox 360 leads hours of game play
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- Figure 48: Hours of video game play in past week, by console, by gender, January 2011-March 2012
- Overall teen hours of game play remains relatively steady over time
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- Figure 49: Hours of video game play in past week, by console, by teens, January 2007-November 2011
- Teen boys play for hours
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- Figure 50: Hours of video game play, by console, teens by gender, October 2010-November 2011
- Not all teen boys are created equal
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- Figure 51: Hours of video game play, by console, by teen boys and age, October 2010-November 2011
Console Gameplay Time Changes
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- Key points
- More gamers spending less time this year on console gaming
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- Figure 52: Change in time playing console games, this year versus last, by gender, June 2012
- One third of young adult gamers spend less time on console games
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- Figure 53: Change in time playing console games, this year versus last, by age, June 2012
Spending Overview
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- Key points
- Most adults who own consoles spend money on gaming
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- Figure 54: Level of spend on console games, hardware, and accessories for oneself, as gifts for others, and for own children, June 2012
- Spending on video gaming for oneself
- Key points
- Men more likely than women to spend on gaming for themselves
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- Figure 55: Spending on console games, hardware, and accessories for oneself, by gender, June 2012
- Most are spending on video games regardless of household income
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- Figure 56: Spending on console games, hardware, and accessories for oneself, by household income, June 2012
- Who is influencing whom?
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- Figure 57: Spending on console games, hardware, and accessories for oneself, by presence of children in household, June 2012
- Bigger spenders more interested in buying next-generation consoles
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- Figure 58: Spending on console games, hardware, and accessories for oneself, by interest in next-generation consoles, June 2012
- Spending on console gaming gifts
- Key points
- Adults aged 18-34 more likely to spend money on gifts for others
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- Figure 59: Money spent on console video games, hardware, and accessories as gifts for others not living with you in your household, by age, June 2012
- Gift spending only loosely correlates with household income
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- Figure 60: Money spent on console video games, hardware, and accessories as gifts for others not living with you in your household, by household income, June 2012
Number of Games Bought or Rented
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- Key points
- Most adult gamers bought or rented one to five games in the last year
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- Figure 61: Number of games bought or rented, by age, January 2011-March 2012
- Teen gamers buy/rent more games than adults
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- Figure 62: Number of video games bought or rented in the last year by teens, by gender and age, October 2010-November 2011
Genres Played
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- Key points
- Venus and Mars—men and women play different games
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- Figure 63: Video game genre preferences, by gender, January 2011-March 2012
- Genre preferences differ by age group
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- Figure 64: Video game genre preferences, by age, January 2011-March 2012
- Teen boys and girls have very different preferences
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- Figure 65: Video game genre preferences by teens, by gender, October 2010-November 2011
Gaming Preferences—Console, Tablet, or Phone
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- Key points
- Most prefer console gaming; mobile gaming taking hold
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- Figure 66: Mobile phone versus console gaming, by gender, June 2012
- Tablet gaming winning over many
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- Figure 67: Tablet gaming versus console gaming, by gender, June 2012
Gaming Compared with Other Forms of Entertainment
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- Key points
- Many say video games are more entertaining than TV
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- Figure 68: Attitudes toward video games as entertainment and relative spend vs. music and movies, by gender, January 2011-March 2012
- Many young adults say video games are main source of entertainment
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- Figure 69: Attitudes toward video games as entertainment and relative spend vs. music and movies, by age, January 2011-March 2012
- Video games are main source of entertainment for half of teen boys
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- Figure 70: Teen attitudes toward video games as entertainment and relative spend vs. music and movies, by gender, October 2010-November 2011
- Boys aged 12-14 love video gaming
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- Figure 71: Teen attitudes toward video games as entertainment and relative spend vs. music and movies, by gender and age, October 2010-November 2011
Methods for Obtaining Games
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- Key points
- Price sensitivity greatest for adults aged 25-34
- Regular borrowing and renting games not that popular
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- Figure 72: Attitudes toward video game acquisition, waiting till cheaper, borrowing or renting, by age, January 2011-March 2012
- Teens more likely than adults to borrow games
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- Figure 73: Teens’ attitudes toward video game acquisition, waiting till cheaper, borrowing or renting, by gender and age, October 2010-November 2011
- Most adults buy games rather than rent
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- Figure 74: Incidence of purchase, trade-in, or rental of video games in past three months, by gender, June 2012
- Young adults very likely to buy video games
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- Figure 75: Incidence of purchase, trade-in, or rental of video games in past three months, by age, June 2012
- Adults with children more likely to buy, rent, or trade in games
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- Figure 76: Incidence of purchase, trade-in, or rental of video games in past three months, by presence of children in household, June 2012
Attitudes to Product Placement in Games
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- Key points
- Significant minority open to product placement in games
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- Figure 77: Attitudes to product placement in video games, by gender, January 2011-March 2012
- Younger adults less likely to object to product placements
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- Figure 78: Attitudes to product placement in video games, by age, January 2011-March 2012
- Many teens on board with product placements
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- Figure 79: Teen attitudes to product placement in video games, by gender, October 2010-November 2011
Types of Online Services Used with Consoles
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- Key points
- Most Xbox 360 and PS3 owners subscribe to affiliated network
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- Figure 80: Online subscriptions used, by console type, June 2012
- More men than women subscribe
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- Figure 81: Online subscriptions used, by console type, by gender, June 2012
- Most premium level subscribers are aged 25-44
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- Figure 82: Online subscriptions used, by console type, by age, June 2012
- Teens most likely to log onto Xbox Live
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- Figure 83: Teen online subscriptions used, by console type, by gender, October 2010-November 2011
Types of Online Activities Game Consoles Used For
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- Key points
- Men play multiplayer games; women stream movies
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- Figure 84: Online service activities for game consoles, by gender, June 2012
- Younger adults use gaming and non-gaming options
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- Figure 85: Online service activities for game consoles, by age, June 2012
- Subscribers with children use full range of network offerings
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- Figure 86: Online service activities for game consoles, by presence of children in household, June 2012
Purchase Intent for Next-generation Consoles
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- Key points
- Significant interest in next-generation consoles
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- Figure 87: Next-generation console purchase intent, June 2012
- Men significantly more interested in next gen than women
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- Figure 88: Next-generation console purchase intent, by gender, June 2012
- Adults aged 18-34 are most interested in next gen
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- Figure 89: Next-generation console purchase intent, by age, June 2012
- Adults with children want the new consoles
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- Figure 90: Next-generation console purchase intent, by presence of children in household, June 2012
Kids and Gaming
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- Key points
- Majority of kids play video games
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- Figure 91: Kids’ video game play, by gender, October 2010-November 2011
- Trends in kids’ console gaming
- Wii is played by more kids aged 6-11 than other consoles
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- Figure 92: Kids’ video gameplay, by console type, January 2007-November 2011
- Since 2010, Xbox 360 leads in hours played
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- Figure 93: Hours of video gameplay by kids, January 2007-November 2011
- Wii play popular with all kids; Xbox and PS with older boys
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- Figure 94: Kids’ video gameplay, by console type, by gender, October 2010-November 2011
- Boys play more hours than girls
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- Figure 95: Hours of video game play by kids, by gender, October 2010-November 2011
- Kids bought or received four games in the last year
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- Figure 96: Number of video games bought or received by kids in last year, by gender, October 2010-November 2011
- Kids’ genre preferences largely follow stereotypes
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- Figure 97: Kids’ video game genre preferences, by gender, October 2010-November 2011
- Many boys like video games more than TV, other entertainment
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- Figure 98: Kids’ attitudes toward video games as entertainment and relative spend vs. music and movies, by gender, October 2010-November 2011
Impact of Race/Hispanic Origin
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- Key points
- Usage
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- Figure 99: Video game ownership or play, by race/Hispanic origin, January 2011-March 2012
- Current generation ownership
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- Figure 100: Video game ownership or play, by console type, by race/Hispanic origin, January 2011-March 2012
- Gaming by platform
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- Figure 101: Devices used to play games in the last month, by race/Hispanic origin, June 2012
- Change in time spent on console game play
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- Figure 102: Change in time playing console games, this year versus last, by race/Hispanic origin, June 2012
- Spending on video gaming for oneself
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- Figure 103: Spending on console games, hardware, and accessories for oneself, by race/Hispanic origin, June 2012
- Genre preferences
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- Figure 104: Video game genre preferences, by race/Hispanic origin, January 2011-March 2012
- Gaming and other forms of entertainment
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- Figure 105: Attitudes toward video games as entertainment and relative spend vs. music and movies, by race/Hispanic origin, January 2011-March 2012
- Methods for obtaining games
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- Figure 106: Attitudes toward video game acquisition, waiting till cheaper, borrowing or renting, by race/Hispanic origin, January 2011-March 2012
- Hispanics more likely to have recently bought, traded in, or rented a game
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- Figure 107: Incidence of purchase, trade-in, or rental of video games in past three months, by race/Hispanic origin, June 2012
- Online service interest is strong regardless of race or Hispanic origin
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- Figure 108: Online subscriptions used, by console type, by race/Hispanic origin, June 2012
- Xbox 720 and Wii U anticipated by Hispanics
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- Figure 109: Next-generation console purchase intent, by race/Hispanic origin, June 2012
Custom Consumer Groups
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- No surprises—young men are core market for video gaming
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- Figure 110: Video game play, by gender and age, January 2011-March 2012
- Young women/moms favor the Wii
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- Figure 111: Video game ownership/play, by console type, by gender and age, January 2011-March 2012
- Half of all men aged 18-24 played a game on a console in past month
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- Figure 112: Devices used to play games in the last month, by gender and age, June 2012
- Men aged 18-44 most likely group to spend more time console gaming
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- Figure 113: Change in time playing console games, this year versus last, by gender and age, June 2012
- Men aged 18-44 are biggest spenders on video gaming
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- Figure 114: Spending on console games, hardware, and accessories for oneself, by gender and age, June 2012
- Young adults more likely to spend $100 or less on gifts
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- Figure 115: Money spent on console video games, hardware, and accessories as gifts for others not living with you in your household, by gender and age, June 2012
- Genre preferences by age/gender
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- Figure 116: Video game genre preferences, by gender and age, January 2011-March 2012
- Young men like multiplayer games
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- Figure 117: Game preferences, by gender and age, June 2012
- Men and women aged 18-24 less likely to pay full price for games
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- Figure 118: Attitudes toward video game acquisition, waiting till cheaper, borrowing or renting, by gender and age, January 2011-March 2012
- Product placements will reach young men
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- Figure 119: Attitudes to product placement in video games, by gender and age, January 2011-March 2012
- Vast majority of 18-24 year old gaming men recently bought a game
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- Figure 120: Incidence of purchase, trade-in, or rental of video games in past three months, by gender and age, June 2012
- More activities on gaming networks for men aged 18-34
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- Figure 121: Online service activities for game consoles, by gender and age, June 2012
- Almost 70% of men aged 18-24 show interest in buying the Xbox 720
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- Figure 122: Next-generation console purchase intent, by gender and age, June 2012
Appendix—Other Useful Tables
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- Figure 123: Video game play, by gender, January 2011-March 2012
- Figure 124: Video game play, by race and age, January 2011-March 2012
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- Figure 125: Video game play, by Hispanic origin and age, January 2011-March 2012
- Figure 126: Video game ownership/play by console type, by household income, January 2011-March 2012
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- Figure 127: Video game play by console type, by gender, October 2010-November 2011
- Figure 128: Device used to play games in the last month, by household income, June 2012
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- Figure 129: Spending on console games, hardware, and accessories for oneself, by age, June 2012
- Figure 130: Change in time playing console games, this year versus last, by spending on console games, hardware, and accessories for oneself, June 2012
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- Figure 131: Money spent on console video games, hardware, and accessories as gifts for own children, by gender, June 2012
- Figure 132: Spending on console games, hardware, and accessories for oneself, by console game ownership; device play, June 2012
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- Figure 133: Video game genre preferences, by household income, January 2011-March 2012
- Figure 134: Teen video game genre preferences, by gender and age, October 2010-November 2011
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- Figure 135: Mobile gaming versus console gaming, by gender and age, June 2012
- Figure 136: Attitudes to product placement in video games, by gender and age, October 2010-November 2011
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- Figure 137: Number of video games bought or rented in the last year by teens, by gender, October 2010-November 2011
- Figure 138: Online subscriptions used, by console type, by household income, June 2012
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- Figure 139: Online subscriptions used, by console type, by presence of children in household, June 2012
- Figure 140: Teens’ video game online service activities—connecting with others, October 2010-November 2011
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- Figure 141: Teens’ video game online service activities— download games, October 2010-November 2011
- Figure 142: Teens’ video game online service activities—watched movies, October 2010-November 2011
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- Figure 143: Teens’ video game online activities—watched TV shows, October 2010-November 2011
- Figure 144: Kids’ video game play by console type, by age, October 2010-November 2011
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Appendix—Trade Associations
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