Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Previous generation consoles are still the most played
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- Figure 1: Video game console ownership, July 2016
- Graphics quality tops consumers’ console improvement wish lists
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- Figure 2: Desired video game console improvements, July 2016
- Game bundles drive hardware sales
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- Figure 3: Attitudes toward console games, July 2016
- The opportunities
- Older Millennials are willing to explore brands
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- Figure 4: Console upgrade vs. new brand purchase, by age, July 2016
- Backward compatibility would heighten the value of new consoles
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- Figure 5: Importance of games vs. hardware specifications, by household income, July 2016
- Online services present revenue opportunities
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- Figure 6: Desired video game console improvements (online multiplayer), by consoles owned or played, July 2016
- What it means
The Market – What You Need to Know
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- Market revenue growth driven more by software than hardware
- Televisions to impact consoles
- Virtual reality to boost interest in higher-end hardware
Market Size
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- The console isn’t dead, but it’s evolving
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- Figure 7: Total US unit sales of gaming consoles, 2011-16
Market Factors
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- Maturation of smart TVs, 4K video, and the implications for console gaming
- Augmented and virtual reality have strong implications for hardware
Key Players – What You Need to Know
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- Leading brands see revenue growth from online services
- Nintendo Wii U struggles to establish itself in the console market
- Leading brands diverge in strategy
What’s Working?
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- Online services driving console brand revenue
What’s Struggling?
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- Nintendo’s Wii U struggles to gain traction
What’s Next?
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- Paths diverge for the leading brands
The Consumer – What You Need to Know
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- Current generation in competition with previous generation consoles
- Room for supporting older generation consoles longer
- 28% of console gamers will buy games as soon as they come out
Video Game Console Ownership and Purchase Intent
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- Current generation has not yet surpassed previous generation
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- Figure 8: Video game console ownership, July 2016
- Gender gap smaller in previous generation consoles
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- Figure 9: Video game consoles ownership (previous generation), by gender, July 2016
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- Figure 10: Video game consoles ownership (current generation), by gender, July 2016
- Younger consumers more likely to play current generation than own
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- Figure 11: Video game consoles ownership (PlayStation 4), by household income, July 2016
- Console life cycle is extended among Hispanics
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- Figure 12: Video game consoles ownership (Nintendo Wii), by race and Hispanic origin, July 2016
- Consumers discuss their favorite consoles
Desired Improvements to Video Game Consoles
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- Better graphics quality is the most desired console improvement
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- Figure 13: Desired video game console improvements, July 2016
- PlayStation, Xbox gamers want more online multiplayer support
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- Figure 14: Desired video game console improvements (online multiplayer), by consoles owned or played, July 2016
- Older console gamers value accessibility
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- Figure 15: Desired video game console improvements (easier controls), by age, July 2016
Behaviors during Most Recent Console Purchase
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- Console purchasing decisions shaped by wives
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- Figure 16: Console upgrade vs. new brand purchase, by gender and relationship status, July 2016
- Youngest adults less willing to explore new console brands
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- Figure 17: Console upgrade vs. new brand purchase, by age July 2016
- Games trump console hardware for all income groups
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- Figure 18: Importance of games vs. hardware specifications, by household income, July 2016
- Hispanic consumers divided between hardware and games
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- Figure 19: Importance of games vs. hardware specifications, by race and Hispanic origin, July 2016
Attitudes toward Console Gaming
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- Game bundles’ impact on console sales
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- Figure 20: Attitudes toward console games, July 2016
- High interest in gaming tournaments for console games
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- Figure 21: Attitudes toward console games, by gender and age, July 2016
- Social console gaming could engage Hispanics
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- Figure 22: Attitudes toward console games, by race and Hispanic origin, July 2016
Behaviors When Buying New Console Games
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- Many consumers willing to buy console games as soon as they come out
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- Figure 23: Video game purchasing habits, July 2016
- Free and paid game downloading habits
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- Figure 24: Video game purchasing habits, by gender and age, July 2016
- Console gifting higher among married consumers
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- Figure 25: Video game purchasing habits, by gender and relationship status, July 2016
- Consumers explain their path to purchase
Attitudes toward Gaming Consoles
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- VR and game mods would create opportunity for the console market
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- Figure 26: Attitudes toward video game consoles, July 2016
- Younger consumers interested in the design of console hardware
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- Figure 27: Attitudes toward video game consoles, by gender and age, July 2016
- Hispanics show heightened interest in newer consoles
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- Figure 28: Attitudes toward video game consoles, by race and Hispanic origin, July 2016
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- Figure 29: Attitudes toward video game consoles, by household income, July 2016
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
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