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
- Video game market to return to growth in 2017
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- Figure 1: Value of the UK video game and console market, 2012-17
- Figure 2: Forecast for the value of the UK video game and console market, 2012-22
- Nintendo Switch launch drives hardware sales growth
- The Netflix of video games
- The mobile model for video games
- Companies and brands
- Microsoft reveals Project Scorpio as the Xbox One X
- Sony launches PS VR and the PS4 Pro for the 2016 holiday season
- Twitch aims to put itself at the heart of the video game market
- Overwatch League set to launch in late 2017
- Switch launch sees Nintendo lead advertising expenditure
- Launch of the Switch helps Nintendo boost its position in the market
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- Figure 3: Estimated share of UK games console sales, by volume, 2016 and 2017 (to date: 01/01/2017-03/06/2017)
- PS4 and Xbox One continue to dominate software sales
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- Figure 4: Estimated share of UK video game sales, by volume, 2016 and 2017 (to date: 01/01/2017-03/06/2017)
- The consumer
- Static and portable console ownership both up in Q2 2017
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- Figure 5: Static and portable console ownership, December 2013-June 2017
- Xbox One S outperforming PS4 Pro in the UK so far
- Switch in as many homes as the PS4 Pro
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- Figure 6: Static games console ownership, June 2017
- Figure 7: Portable games console ownership, June 2017
- Purchase plans suggest strong holiday season for PS VR and Nintendo Switch
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- Figure 8: Console and video game technology purchase plans, June 2017
- Digital retail on par with physical for gamers who buy games regularly
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- Figure 9: Video game purchasing frequency, June 2017
- 55% of portable owners play games multiple times a week
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- Figure 10: Gaming frequency, June 2017
- Infrequent players demonstrate the importance of retention for console games
- Local multiplayer could boost the Nintendo Switch’s proposition for younger consumers
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- Figure 11: Attitudes to gaming, June 2017
- One in four gamers watches eSports tournaments
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- Figure 12: Attitudes to eSports, broadcasting gameplay and viewing gameplay, June 2017
- What we think
Issues and Insights
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- The mobile model for console gaming
- The facts
- The implications
- Developing an eSports audience
- The facts
- The implications
The Market – What You Need to Know
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- Video game market to return to growth in 2017
- Nintendo Switch boosts hardware sales
- The Netflix of video games
- The mobile model for video games
Market Size, Segmentation and Forecast
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- Video game market to return to growth in 2017
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- Figure 13: Value of the UK video game and console market, 2012-17
- Figure 14: Forecast for the value of the UK video game and console market, 2012-22
- Nintendo Switch expected to reinvigorate hardware sales…
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- Figure 15: Volume of the UK games console market, 2012-17
- Figure 16: Forecast for the value of the UK games console market, 2012-22
- Figure 17: forecast for the volume of the UK games consoles market, 2012-22
- …but decline in software sales likely to continue
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- Figure 18: Volume of the UK video game software market, 2012-17
- Software sales expected to become more consistent over the next five years
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- Figure 19: forecast for the value of the UK video game software market, 2012-22
- Figure 20: Forecast for the volume of the UK video game software market, 2012-22
- Forecast methodology
Market Drivers
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- Nintendo Switch launch boosts hardware sales
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- Figure 21: the Nintendo Switch
- ‘The Netflix of video games’
- The mobile model for PC and console games
- Brexit pushes up the prices of in-game items
Companies and Brands – What You Need to Know
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- Launch of the Switch helps Nintendo boost its position in the market
- PS4 and Xbox One continue to dominate software sales
- Microsoft reveals Project Scorpio as the Xbox One X
- Sony launches PS VR and the PS4 Pro for the 2016 holiday season
- Twitch aims to put itself at the heart of the video game market
- Overwatch League set to launch in late 2017
- Switch launch sees Nintendo lead advertising expenditure
Market Share
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- Launch of the Switch helps Nintendo boost its position in the market
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- Figure 22: Estimated share of UK games console sales, by volume, 2016 and 2017 (to date: 01/01/2017-03/06/2017)
- PS4 and Xbox One continue to dominate software sales
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- Figure 23: Estimated share of UK video game sales, by volume, 2016 and 2017 (to date: 01/01/2017-03/06/2017)
Launch Activity and Innovation
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- Microsoft reveals Project Scorpio as the Xbox One X
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- Figure 24: The Xbox One X
- Sony launches PS VR and the PS4 Pro for the 2016 holiday season
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- Figure 25: PS VR Headset with PS Move controllers
- Twitch aims to put itself at the heart of the video game market
- Microsoft develops its own livestreaming platform, Mixer
- Overwatch League set to launch in late 2017
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- Figure 26: The Overwatch League Logo
- GAME Belong
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- Figure 27: Belong gaming space
- Atari announces the Ataribox
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- Figure 28: The Ataribox
Advertising and Marketing Activity
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- Switch launch sees Nintendo lead advertising expenditure
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- Figure 29: Total above-the-line, online display and direct mail advertising expenditure on video games and consoles, 01/08/2016-01/08/2017
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Static and portable console ownership both up in Q2 2017
- Xbox One S out performing PS4 Pro in the UK so far
- Switch in as many homes as the PS4 Pro
- Purchase plans suggest strong holiday season for PS VR and Nintendo Switch
- Digital retail on par with physical for gamers who buy games regularly
- Over half of portable owners play games multiple times a week
- Infrequent players demonstrate the importance of retention for console games
- Local multiplayer could boost the Nintendo Switch’s proposition for younger consumers
- One in four gamers watches eSports tournaments
Console Ownership
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- Static and portable console ownership both up in Q2 2017
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- Figure 30: Static and portable console ownership, December 2013 - June 2017
- Xbox One S outperforming PS4 Pro in the UK so far
- Switch in as many homes as the PS4 Pro
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- Figure 31: Static games console ownership, June 2017
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- Figure 32: Portable games console ownership, June 2017
- Almost all Switch owners own at least one other console brand
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- Figure 33: Repertoire of console ownership, June 2017
- PS VR adoption low but not insignificant
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- Figure 34: Virtual reality headset usage, by static console ownership, June 2017
Video Game and Console Awareness and Purchasing
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- Awareness of Xbox One X is low
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- Figure 35: Awareness of new consoles and gaming technology, June 2017
- Purchase plans suggest strong holiday season for PS VR and Nintendo Switch
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- Figure 36: Console and video game technology purchase plans, June 2017
- Xbox One owners more likely than PS4 owners to consider upgrading
- Nintendo Switch has strong appeal for 3DS owners
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- Figure 37: Console and video game technology purchase plans, by console ownership, June 2017
- Digital retail on par with physical for gamers who buy games regularly
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- Figure 38: Video game purchasing frequency, June 2017
Gaming Frequency
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- Over half of portable owners play games multiple times a week
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- Figure 39: Gaming frequency, June 2017
- Infrequent players demonstrate the importance of retention for console games
- Expansion packs and time-limited events are effective retention tools
- Alternative ways of retaining players
Attitudes to Gaming
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- Local multiplayer could boost the Nintendo Switch’s proposition for younger consumers
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- Figure 40: Attitudes to gaming, June 2017
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- Figure 41: Interest in hybrid console concept, by those aware of Nintendo Switch vs all gamers, June 2017
- One in four gamers watches eSports tournaments
- Xbox One a more popular broadcasting platform than PS4
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- Figure 42: Attitudes to eSports, broadcasting gameplay and viewing gameplay, June 2017
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Total market value forecast
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- Figure 43: Forecast for the value of the UK video game and console market, 2012-22
- Hardware value forecast
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- Figure 44: Forecast for the value of the UK games console market, 2012-22
- Hardware volume forecast
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- Figure 45: Forecast for the volume of the UK games console market, 2012-22
- Software value forecast
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- Figure 46: Forecast for the value of the UK video game software market, 2012-22
- Software volume forecast
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- Figure 47: Forecast for the volume of the UK video game software market, 2012-22
- Forecast methodology
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