Video Games and Consoles - UK - August 2019

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Market declining but will be boosted significantly in 2020
Figure 1: Forecast for the value of the video games and consoles market, 2014-2024
Figure 2: Forecast for the volume of the video games and consoles market, 2014-2024
Traditional console gaming becoming an activity for all devices…
...but high quality internet speeds needed as a result
Esports driving the need for more powerful consoles
Companies and brands
Google announces internet-based gaming platform Stadia
Xbox launches Xbox One S All Digital Edition and reveals Project Scarlett details
Nintendo unveils cheaper alternative to Switch with Switch Lite
Epic Games drives significant increase in video games advertising spend
The consumer
Over 50% of Generation Z and Millennials have a static console at home
Figure 3: Ownership of static games consoles, June 2019
PlayStation still clear as most popular static console
Figure 4: Type of static console owned, June 2019
Portable console ownership stays level compared to 2018
Figure 5: Ownership of portable games consoles, June 2019
Significant growth in ownership of PSVR
Figure 6: Use or interest in VR for PlayStation owners, June 2019
First-person shooter games edge out other genres
Figure 7: Preferred gaming genre, June 2019
Discs still most popular way to play…
Figure 8: Preference for digital games or discs, June 2019
Almost 70% of console owners at least considering upgrading to next generation
Figure 9: Intent to buy next generation console, June 2019
What we think
ISSUES AND INSIGHTS
New Stadia streaming service suggests opportunities for zero-rating data deals
The facts
The implications
PSVR growth held back by lack of opportunities to try it
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Games console market declining but will be boosted significantly in 2020
Red Dead Redemption 2 and FIFA 19 most popular Xbox and PlayStation titles in 2018
Traditional console gaming becoming an activity for all devices…
…but high quality internet speeds needed as a result
Esports driving the need for more powerful consoles
MARKET SIZE AND FORECAST
Games console market declining but will be boosted significantly in 2020
Figure 10: Forecast for the value of the video games and consoles market, 2014-2024
Figure 11: Forecast for the volume of the video games and consoles market, 2014-2024
Figure 12: Value of the UK video game and console market, 2014-2019
Figure 13: Volume of the UK games console market, 2014-2019
Figure 14: Share of volume sales of games consoles, by brand, 2017 and 2018
Red Dead Redemption 2 and FIFA 19 most popular Xbox and PlayStation titles in 2018
Figure 15: Volume of the UK video game software market, 2014-2019
MARKET DRIVERS
Next generation consoles to significantly boost the market
Traditional console gaming becoming an activity for all devices…
…but high quality internet speeds needed as a result
Esports driving the need for more powerful consoles
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Google announces internet-based gaming platform Stadia
Xbox launches Xbox One S All Digital Edition and reveals Project Scarlett details
Nintendo unveils cheaper alternative to Switch with Switch Lite
Epic Games drives significant increase in video games advertising spend
LAUNCH ACTIVITY AND INNOVATION
Google announces internet-based gaming platform Stadia
Figure 16: Google Stadia controller
Xbox launches Xbox One S All Digital Edition and reveals Project Scarlett details
Figure 17: Xbox One S All Digital Edition
Sony offers PlayStation game streaming for iOS and announces next-gen PlayStation
Nintendo unveils cheaper alternative to Switch with Switch Lite
Figure 18: Nintendo Switch Lite
ADVERTISING AND MARKETING ACTIVITY
Epic Games drives significant increase in video games advertising spend
Figure 19: Total above-the-line, online display and direct mail advertising expenditure on video games and consoles hardware and software, 2014-2018
Figure 20: Total above-the-line, online display and direct mail advertising expenditure on video games and consoles hardware and software, by leading advertisers, 2017 and 2018
Figure 21: Total above-the-line, online display and direct mail advertising expenditure on video games and consoles hardware and software, by media type, 2017 and 2018
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 22: Attitudes towards and usage of selected brands, July 2019
Key brand metrics
Figure 23: Key metrics for selected brands, July 2019
Brand attitudes: PlayStation leads for delivering high quality and innovation
Figure 24: Attitudes, by brand, July 2019
Brand personality: Nintendo viewed as most accessible
Figure 25: Brand personality – macro image, July 2019
Xbox is well rounded but expensive
Figure 26: Brand personality – micro image, July 2019
Brand analysis
PlayStation leads recent consumer usage, satisfaction and recommendations
Figure 27: User profile of PlayStation, July 2019
Xbox close to PlayStation in offering a positive user experience
Figure 28: User profile of Xbox, July 2019
Nintendo appealing to a range of consumer age groups
Figure 29: User profile of Nintendo, July 2019
THE CONSUMER – WHAT YOU NEED TO KNOW
Over 50% of Generation Z and Millennials have a console at home
Portable console ownership stays level compared to 2018
Significant growth in ownership of PSVR
First-person shooter games edge out other genres
Discs still most popular way to play…
Almost 70% of console owners at least considering upgrading to next generation
Performance is highly important for gamers considering a next gen upgrade
OWNERSHIP OF STATIC AND PORTABLE GAMES CONSOLES
Over 50% of Generation Z and Millennials have a static console at home
Figure 30: Ownership of technology products, June 2019
PlayStation still clear as most popular static console
Figure 31: Type of static console owned, June 2019
Portable console ownership stays level from 2018
Figure 32: Ownership of portable games consoles, June 2019
Over half of portable games console owners have a Nintendo 3DS
Figure 33: Type of portable console owned, June 2019
VIRTUAL REALITY FOR CONSOLE GAMING
Significant growth in usage of and interest in PSVR
Figure 34: Use of or interest in VR for PlayStation owners, 2018 - 2019
Four in ten non-PS4 gamers are interested in VR
Figure 35: Interest in VR for non-PlayStation owners, June 2019
Uninterested gamers say VR is too expensive and a gimmick
Figure 36: Reasons for lack of interest in VR for non-PlayStation owners, June 2019
GAMING GENRES AND FORMATS
First-person shooter games edge out other genres
Figure 37: Preferred gaming genre, June 2019
Discs still most popular way to play…
Figure 38: Preference for digital games or discs, June 2019
…but nearly half of gamers would be happy with a digital-only console
Figure 39: Interest in buying a digital-only console, June 2019
NEXT GENERATION CONSOLES – INTENT TO UPGRADE AND IMPORTANT FACTORS
Almost 70% of console owners at least considering upgrading to next generation
Figure 40: Intent to buy next generation console, June 2019
Four in ten consumers who plan to upgrade will do so in first six months
Figure 41: Timescale of buying a next generation console, June 2019
Performance is highly important for gamers considering a next gen upgrade
Figure 42: Most important factors in deciding to upgrade, June 2019
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology