Video Games and Consoles - UK - November 2014
Introduction
 
2014 sees the first full year of sales of the Xbox One and PlayStation 4, after their November 2013 release. The two consoles are selling well, with expectations high for a strong return to value growth for the industry despite the external pressures of smartphone and tablet gaming. Publisher release slates are shrinking to focus on fewer pieces of proven popular intellectual property, though this lack of novel content is balanced by a rich community of Indie developers on all main platforms.

This report examines the state of console gaming in the UK, including the consoles and peripherals consumer own, the premium console-side services they pay for, their attitude towards subscription style all-you-can-play services, and reasons that gamers have yet to purchase one of the new generation consoles.

Definitions
Payments to subscription services are not included in Mintel’s market size definition, which focuses only on revenue from the sale of games consoles and games (both physical and digital). 

Static consoles are devices designed primarily to play games through connection to a television, and are capable of playing games either from a disc or as a digital download. Steam Machines would be covered under this definition, but are not currently included in Mintel’s market sizing or consumer research. This may change in 2015 depending on when the devices start to filter onto the market.

Portable consoles are devices designed primarily to play games either from cartridges, smaller discs or as digital downloads. Smartphones and tablets – and the games played on them – are not included in this definition.

Current generation or new generation consoles refer to the Xbox One, Wii U and PlayStation 4. 

Previous generation or old generation consoles refer to all prior static consoles, including (but not limited to) the Xbox 360, PlayStation 3 and Wii.

AAA is a term used to describe games developed by major studios, which tend to have multi-million pound development and marketing budgets. AAA is not an acronym, rather a broad classification rating.

Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland.

Abbreviations
DICE	Design, Innovate, Communicate, Entertain	
DS	Dual Screen	
EA	Electronic Arts	
EU	European Union	
FIFA	Fédération Internationale de Football Association	
GPS	Global Positioning System	
GTA	Grand Theft Auto	
IP	Intellectual Property	
JRPG	Japanese Role Playing Game	
MTV	Music Television	
NFL	National Football League	
NMR	Nielsen Media Research	
OEM	Original Equipment Manufacturer	
OS	Operating System	
PS	PlayStation	
PSP	PlayStation Portable	
TV	Television	
US	United States	
USP	Unique Selling Point	
VR	Virtual Reality