Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Migration to current-generation consoles keeps declines in the software segment low
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- Figure 1: Value of the UK console video games market, 2011-16
- Hardware segment to be boosted by new wave of consoles
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- Figure 2: Forecast for the value of the UK video games market, 2011-21
- In 2016, seven out of every 10 consoles sold in the UK is an Xbox One or PS4
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- Figure 3: Estimated share of the UK console hardware market, by volume, 2015 and 2016 (to date)
- Microsoft and Sony adopt a new upgrade paradigm for static consoles
- Software for the previous generation still accounts for a third of software sales
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- Figure 4: Estimated platform share of the UK console software market, by volume, 2015 and 2016 (to date)
- Pokémon GO gives minor boost to the ailing handheld segment
- Static console alternatives arrive on the scene
- The consumer
- PS4 is the UK’s most popular console; Wii U continues to lag behind competitors
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- Figure 5: Ownership of gaming devices July 2016
- Digital sales fail to catch physical
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- Figure 6: Mode of video games software purchase, July 2016
- Disengaged console owners are disproportionately female
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- Figure 7: Ownership of games consoles and frequency of playing, by gender, July 2016
- More than one in 10 have never owned a current-generation static console despite gaming regularly
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- Figure 8: Ownership of current-generation consoles among regular gamers (once a week or more), July 2016
- Sony’s innovation scores points with gamers
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- Figure 9: Console ownership, by interest in new gaming technology, July 2016
- What we think
Issues and Insights
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- The continuing influence of previous-generation consoles
- The facts
- The implications
- Sony strengthens position as market leader with new gaming technology
- The facts
- The implications
The Market – What You Need to Know
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- Migration to current-generation consoles keeps declines in the software segment low
- Growth expected in 2017 and beyond
- In 2016, seven out of every 10 consoles sold in the UK is an Xbox One or PS4
- Software for the previous generation still accounts for a third of software sales
- Pokémon GO gives minor boost to the ailing handheld segment
- Static console alternatives arrive on the scene
- Microsoft and Sony adopt a new upgrade paradigm for static consoles
Market Size and Forecast
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- Migration to current-generation consoles keeps declines in the software segment low
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- Figure 10: Market value for the UK console video games market, 2011-16
- Growth expected in 2017 and beyond
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- Figure 11: Forecast for the value of the UK video games market, 2011-21
- Average price increase set to reinvigorate hardware value growth
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- Figure 12: Forecast for the value of the UK video games hardware market, 2011-21
- New hardware to stimulate software sales
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- Figure 13: Forecast for the value of the UK video games software market, 2011-21
- Forecast methodology
Market Drivers
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- Microsoft and Sony adopt a new upgrade paradigm for static consoles
- Cloud gaming technologies bring the console gaming experience to PCs
- Static console alternatives arrive on the scene
- Continuing support for old systems
- Pokémon GO gives minor boost to the ailing handheld segment
- eSports struggles to establish itself on the console platform
Market Share
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- Seven out of every 10 consoles sold in the UK is an Xbox One or PS4
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- Figure 14: Estimated share of the UK console market (hardware), by volume, 2015 and 2016 (to date)
- Software for the previous generation still accounts for a third of software sales
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- Figure 15: Estimated share of the UK console market (software), by volume, 2015 and 2016 (to date)
Launch Activity and Innovation
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- The Nintendo NX: A two-in-one for gaming
- Quantum Break tries to marry video games and television…
- …while GINX gives gaming its own TV channel
- PlayStation leads the way in console VR
- Microsoft to link Xbox and Windows gaming platforms with ‘Play Anywhere’ programme
- Nintendo goes after the retro market with the NES Classic
- Indie games break into the mainstream
Advertising and Marketing Activity
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- Publishers account for more than half of advertising expenditure
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- Figure 16: Total above-the-line, online display and direct mail advertising expenditure on video games (hardware and software), 1 September 2015-1 September 2016
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- PS4 edges out Xbox One as UK’s most popular console
- An abundance of exclusive titles on the Wii U fails to compensate for the lack of cross-platform AAA titles
- Digital sales fail to catch physical
- Disengaged console owners are disproportionately female
- More than one in 10 consumers have never owned a current-generation static console even though they game once per week or more
- Sony’s innovation scores points with gamers
Console Ownership
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- PS4 edges out Xbox One as UK’s most popular console; Nintendo falls behind in living rooms but continues to dominate the handheld segment
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- Figure 17: Ownership of gaming devices, 2015 and July 2016
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- Figure 18: Purchasing intentions, July 2015 and growth in ownership, July 2015 and 2016
- Key static console-owning demographics
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- Figure 19: Key demographics for static console ownership, July 2016
Factors in Console Purchasing Decisions
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- An abundance of exclusive titles on the Wii U fails to compensate for the lack of cross-platform AAA titles
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- Figure 20: Console purchase decision influences, July 2016
- There is a retro market, but it’s not based on nostalgia
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- Figure 21: Backwards compatibility as an influence on console purchase decision, July 2016
Ways of Buying Console Games
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- Digital sales fail to catch physical
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- Figure 22: Software purchase modality, July 2016
- Single-channel buyers prefer physical copies
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- Figure 23: Software purchase modality repertoire, July 2016
- Frequent gamers favour the same channels as other consumers
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- Figure 24: Software purchase modality, by gaming frequency, July 2016
- Second-hand retail keeps gamers’ libraries fresh and fosters engagement
- In-game incentives can help turn console owners into frequent gamers
Gaming Frequency
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- Half of gaming device owners play more than once per week
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- Figure 25: Gaming frequency, July 2016
- Disengaged console owners are disproportionately female
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- Figure 26: Ownership of games consoles and frequency of playing, by gender, July 2016
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- Figure 27: Attitudes towards gaming among disengaged female console owners, July 2016
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- Figure 28: Genres of games played – Females vs all, July 2015
- 12% of consumers have never owned a current-generation console despite gaming once per week or more
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- Figure 29: Console ownership among regular gamers (once a week or more), July 2016
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- Figure 30: Gaming PC ownership and agreement that “consoles offer a better gaming experience than PCs’ among regular gamers who don’t own current-generation consoles, July 2016
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- Figure 31: Interest in social interaction and agreement that playing games online can be fun among regular gamers who don’t own current-generation consoles, July 2016
Attitudes towards Gaming
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- Some 45% would play video games more if they had more time
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- Figure 32: Preferences and interests in gaming and gaming technology, July 2016
- Sony’s innovation scores points with gamers
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- Figure 33: Interest in new gaming technology, by console ownership, July 2016
- General population not engaged with gaming
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- Figure 34: Attitudes towards gaming, July 2016
- eSports
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- Figure 35: Interest in eSports coverage, July 2016
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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