Abstract
This report covers sales of new video game consoles and software for the following gaming platforms: Sony PS2 and PS3; Microsoft Xbox and Microsoft Xbox360; Nintendo GameCube and Nintendo Wii.
Due to the investment required to keep pace with innovation, the console market is dominated by only three players--Sony, Microsoft and Nintendo. The software market is dominated by Electronic Arts. Market participants advertise and promote products heavily at the E3 conference, in traditional media, and via non-traditional promotional efforts like viral marketing.
The market is no longer the sole province of teen and college-age boys--40% of U.S. households own a gaming console. According to a review of Simmons NCS data, black respondents have the highest rates of household ownership and multi-platform ownership. They also purchase the most games in a given 12-month period compared to other racial/ethnic groups. Mintelfs own research shows minorities carrying greater interest in using the gaming console for a wide array of activities, rather than just for playing traditional games.
The future is expected to be brighter than the past, resulting from four factors: 1) sales of next generation consoles at higher per unit costs, 2) purchase of games for next generation consoles including new content and next generation compatible versions of existing games, 3) increase in in-game advertising, and 4) increase in revenue from online gaming services (subscription fees, purchases of downloadable games or additional content, etc.).
In this report, Mintel clearly identifies the principal external factors driving or curtailing growth. Exclusive consumer research reveals the attitudes, needs and behavior of consumers, with analysis broken down both by demographic characteristics, and by segment.
Six years of specific sales data provide a factual and impartial presentation of the market as a whole. Mintel also evaluates the performance of individual sectors in the market, and provides information about the major companies and brands. Using the SPSS forecasting package, Mintel creates a five-year forecast of U.S. retail sales, revealing potential opportunities for growth and product development.
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