Exploiting Opportunities in the Global Electronic Games Sector (Review Report)

Publication Date	January 2007
Publisher	Datamonitor
Product Type	Report
Pages	46
ISBN Number	not applicable
Product Code	DAT04330

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Summary

Introduction

This review report provides an overview of current and future developments across global gaming sector.

Scope

Provides analysis of current players in the video game console market and their respective business strategies.
Addresses new ways manufacturers are exploiting opportunities to reach consumers.
Provides an analysis of primary drivers for online games use as well as for the adoption of the next-generation of video game consoles.

Highlights

Key drivers are spurring the adoption of video games both online and offline. Broadband penetration is prompting the consumption of online material and the use of online social media. Demographics are also shifting with the average gamer being around 33 years old.

Next-generation consoles from Microsoft, Nintendo and Sony are all battling for the living room through the creation of dynamic online products. Microsoft currently holds a strong lead with regards to online services although competition is pushing to usurp its position.

Datamonitor expects the Sony PlayStation 3 to perform very well in long term. However, the console is not expected to dominate as much as its predecessor, the PS2, due to late launch issues in the PAL region and the early lead of Microsoft's Xbox 360.

Reasons to Purchase

Understand key drivers for the uptake of next-generation video game consoles including broadband adoption and shifting gamer demographics.
Gain insight into the current competitive environment facing the video game console market with regards to online services.
Forecast uptake in the next-generation home and handheld console market till 2010.

Content

Catalyst
Summary
Methodology
Executive Summary
- Introduction
- The transforming global video games market (Market Focus)
- The global video games market: driving revenue from online strategies (Strategy Focus)
- Global gaming: subscriber growth by platform and region (Databook)
The Transforming Global Video Games Market (Market Focus)
- Summary
- High-speed connectivity and changing gamer demographics drive online games use
- Broadband adoption is gathering pace
- Consumers' media usage is increasingly shifting online
- Games player demographics are shifting
- Defining the video games industry is becoming increasingly complex
- Users have an increasing array of game types to choose from
- Consumers are faced with an growing number of platforms on which to play games
- Publishers face a risky business, with few rising to the top
- Video game console market is evolving with nex-gen deployment
- Console manufacturers tackle the home market with new products
- Sony, Microsoft and Nintendo jostle for market share
- Addressing the console launch timeline: Xbox 360 gains an early lead while Sony suffers early setbacks
- Outlining the different systems: the functionality and features of the PS3 seem set to impress
- Xbox 360 is close on the heels of the PS3 overall
- Installed base grows with each console lifecycle
- Xbox holds an early lead but PS3 is expected to head the market
- The US is expected to be the largest next-generation console market by 2010
- The handheld market is no longer a one horse race
- Nintendo and Sony offer unique products
- Nintendo continues to dominate the handheld market
- Competition from mobile operators encroaches into the sector
The Global Video Games Market: Driving Revenue From Online Strategies (Strategy Focus)
- Summary
- Market players fight to remain competitive
- Players battle for consumers 'playtime' with alternative entertainment sources
- Understanding audiences is one of the biggest challenges facing the sector
- New strategies come to light in the video game hardware and software market
- Nintendo retains a price advantage
- Sony and Microsoft battle for the living room
- Nintendo aims to include the whole family through innovative gameplay
- Manufacturers look to online gaming to provide new opportunities to reach consumers
- Online gaming has traditionally been dominated by PC-based services
- Sony and Nintendo look to tackle Microsoft's online dominance
- PlayStation Network offers 'core' services for free
- Wii Channels and Wii Connect24 create an 'open' online system
- Nintendo's WiFi Connection offers free roaming gaming
- Xbox Live continues to hold a strong position through it two-tired system
- Xbox Live Arcade offers causal gaming to the video game console audience
- All of the major players are placing a strong emphasis on online services
- PS3 set to have the largest user base for online services
- Publishers aim to exploit the 'long-tail' through digital distribution
- Games companies explore alternative revenue generation strategies
- Online gaming provides a perfect opportunity for advertising
- Micro payment models are seen as a possible opportunity to increase revenue
- Industry activity highlights the shift towards new revenue generation tactics in the sector
- Acquisitions consolidate the once fragmented publishing industry
- Big firms begin to take in-game advertising seriously
Global Gaming: Subscriber Growth By Platform And Region (Databook)
- Introduction
- Definitions
- Pricing strategies of major console manufacturers, 1985 - 2006
- Global next-generation video game console uptake, 2005 - 2010
- US next-generation video game console uptake, 2005 - 2010
- European next-generation video game console uptake, 2005 - 2010
- Japanese next-generation video game console uptake, 2005 - 2010
- Regional split for console uptake, 2010
- Global next-generation handheld games console uptake, 2005 - 2010
- US next-generation handheld games console uptake, 2005 - 2010
- European next-generation handheld games console uptake, 2005 - 2010
- Japanese next-generation handheld games console uptake, 2005 - 2010
- Active online user base by console, 2005 - 2010
Appendix
- Definitions
Further reading
- Ask the analyst
List of Tables
- Table 1: Next-generation console definitions
- Table 2: Pricing strategies of major console manufacturers, 1985 - 2006
- Table 3: Global next-generation video game console uptake, 2005-2010
- Table 4: US next-generation video game console uptake, 2005 - 2010
- Table 5: European next-generation video game console uptake, 2005 - 2010
- Table 6: Japanese next-generation video game console uptake, 2005 - 2010
- Table 7: Regional split for console uptake, 2010
- Table 8: Global next-generation handheld games console uptake, 2005 - 2010
- Table 9: US next-generation handheld games console uptake, 2005 - 2010
- Table 10: European next-generation handheld games console uptake, 2005 - 2010
- Table 11: Japanese next-generation handheld games console uptake, 2005 - 2010
- Table 12: Active online user base by console, 2005 - 2010
List of Figures
- Figure 1: Recent developments in the next-generation console market, 2005-2007
- Figure 2: Next-generation console comparison
- Figure 3: Comparison of next-generation console
- Figure 4: Video game console lifecycle, 1995-2011
- Figure 5: Console installed base forecast, 2005-2010
- Figure 6: Installed base by region, 2010
- Figure 7: Handheld console installed base forecast, 2005-2010
- Figure 8: Pricing strategies of major console manufacturers, 1985 - 2006
- Figure 9: Comparison of online services for next-generation consoles
- Figure 10: Online users for next-generation consoles
- Figure 11: Exploiting the long-tail: the push for digital distribution
- Figure 12: Pricing strategies of major console manufacturers, 1985 - 2006
- Figure 13: Global next-generation video game console uptake, 2005-2010
- Figure 14: US next-generation video game console uptake, 2005 - 2010
- Figure 15: European next-generation video game console uptake, 2005 - 2010
- Figure 16: Japanese next-generation video game console uptake, 2005 - 2010
- Figure 17: Regional split for console uptake, 2010
- Figure 18: Global next-generation handheld games console uptake, 2005 - 2010
- Figure 19: US next-generation handheld games console uptake, 2005 - 2010
- Figure 20: European next-generation handheld games console uptake, 2005 - 2010
- Figure 21: Japanese next-generation handheld games console uptake, 2005 - 2010
- Figure 22: Active online user base by console, 2005 - 2010