August 6th, 2007 by admin
Key Takeaways
- The console household universe has grown 18.5% since fourth quarter 2004, compared to a 1.6% growth in the total universe of television households.
- Two-thirds of all Men aged 18-34 have access to a video game console in their home.
- The universe of connected console households (households subscribing to a service to connect their console to the internet) has grown to more then 4.4 million households, even before the newest Playstation 3 and Wii consoles are considered.
- In the NTI (Nielsen Television Index) fourth quarter of 2006 (9/18/06-12/31/06), 93.8 million US Persons aged two and older used a video game console for at least one minute.
- In any given minute, approximately 1.6 million US Persons aged two and older are using a video game console.
- The heaviest console users accounted for 74.4% of all console usage and averaged 345 minutes (5 hours and 45 minutes) of usage per usage day during the fourth quarter of 2006.
Console Penetration
The number and proportion of US television households with video game consoles has increased in recent years. The console household universe has grown 18.5% since Q4 2004, compared to a 1.6% growth in the total US television households universe. Nielsen estimates that in the fourth quarter of 2006, there were 45.7 million console households in the U.S, a penetration of 41.1%; up from 39.1% (43.0 million) in 2005 and 35.2% (38.6 million) in 2004.
Among key video game demographic segments, the degree of penetration was even higher. Two-thirds of all Men aged 18-34 and 80% of Men aged 12-17 have access to a console in their home. Figure 1, below, shows the total universe and that which has access to a video game console in their home, by demographic break.
As console penetration has grown, so too has the connectivity of in-home consoles.
Nielsen estimates that since Q4 2003, the universe of connected console households has grown approximately 77%. In Q4 2006, we estimate that more than 28 million US households owned or rented at least one console system capable of connecting to the Internet (even before consideration of the Sony Playstation 3 or the Nintendo Wii, both released in late 2006). Among those households that owned the Sega Dreamcast, Sony Playstation 2, Microsoft Xbox, Microsoft Xbox 360 or Nintendo Gamecube, we estimate that 16%, or approximately 4.4 million console households, subscribed to a service to connect their system to the Internet. In Q4 2003, just 2.5 million households (10.6% of those who owned a connectable system) subscribed to such a service.
Among key console demographic groups, the reach and frequency is quite staggering.
The age-gender composition of that average audience supports conventional wisdom in terms of gender (77.1% of the average console audience for the period was male), but is more diverse in terms of age.
nielsen_report_state_console_03507.pdf
August 6th, 2007 by admin
Sony’s PlayStation 2 accounted for 42% of video game console usage during June, and PC gamers played World of Warcraft more than four times as much as any other PC game, Nielsen reported today as it launched Nielsen GamePlay Metrics™, the first service of its kind to electronically track video game console usage and games played on PCs.68.1 million individuals used a video game console in June, playing an average of 7.5 days during the month.
- On the days they played, Xbox 360 users logged an average of 2.2 sessions, with an average session length of 61 minutes.
- In contrast, PlayStation 3 users’ logged an average of 1.9 sessions, with an average session length of 83 minutes, on the days they played.
PC Game Rankings
“World of Warcraft from Blizzard Entertainment was the most played PC game in June, according to Nielsen’s GamePlay Metrics, outranking the next most-played game by four times. In addition to World of Warcraft, the top five PC games for June included Halo: Combat Evolved and Halo 2 from Microsoft Game Studios, The Sims from Electronic Arts and RuneScape from Jagex. Legacy blockbuster franchises with strong customizable communities (”modders”) like Grand Theft Auto and Counter-Strike rounded out the top 10.
Additional Findings
Nielsen GamePlay Metrics is built upon the same data collection infrastructure as Nielsen’s TV ratings system, and can derive in-depth information about console gamers and their households. For example:
- There are seasonal use patterns of game play. In April, Wii’s peak usage hour was 5PM, and now, during Summer Break, Wii usage peaks at 8 PM.
- Wii households are upscale. They are more likely to earn more than $100,000 income per year.
For info on how Nielsen gathered this data: http://www.nielsenmedia.com/nc/portal/site/Public/menuitem.55dc65b4a7d5adff3f65936147a062a0/?vgnextoid=92202d7fd9ef3110VgnVCM100000ac0a260aRCRD
August 3rd, 2007 by admin
July 27, 2007
The Xbox 360 has overtaken the Nintendo Wii as the most searched for gaming console based on share of US Internet searches for the first time since the Wii’s launch in November 2006. The Xbox 360 is #1 console based on sales volume but the Wii has enjoyed the fastest growth in market share. We often find that Internet searches are a leading indicator and can be predictive of future sales growth.
Searches can also be driven by other factors – namely recalls So is the growth in searches for Xbox 360 simply a result of the recent “warranty extension” and “Red Ring of Death”? Hitwise search data indicates it is not. The following table lists the top search terms entered into search engines in the past four weeks that include the words “xbox 360”:
Searches for “xbox 360 problems” and “xbox 360 repair” figure at #13 and #15 on the list. I found the term “xbox 360 price drop” (#6 on the list above) particularly interesting. Since Sony announced a drop in price for one of the PS3 models two weeks ago, rumours have spread about a possible price drop for the Xbox 360, with the latest rumours predicting a price drop in August.
Demand is high for a price drop - in the past four weeks, the top search term with the words “price drop” was “xbox 360 price drop”. There were 70% more US searches for “xbox 360 price drop” than for “ps3 price drop”.
So what is driving the increase in searches for Xbox 360? It appears to be a combination of hype for new games, rumours of a price drop and no doubt some queries about the recent problems.
December may be months away, but with PwC predicting that the total number of dollars spent on video games will exceed the total dollars spent on music in the United States by the end of the holiday season, the battle for the must have Christmas gift will no doubt centre once again on gaming.
http://weblogs.hitwise.com/bill-tancer/2007/07/xbox_overtakes_wii_as_most_sea.html
July 2nd, 2007 by admin
Videogames will remain one of the above-average growth segments of the consumer electronics (CE) and global entertainment industries through 2011, with worldwide spending on games forecast to exceed music spending, according to PricewaterhouseCoopers (PwC), Smarthouse News reports.
In some markets, such as the US, the UK and Australia, PwC forecasts that the video game market will beat out the music sector as a result of the growth of online and wireless games, new consoles and in-game advertising. The projections include consumer spending on games, but not hardware and accessories spending.
Additional game-related data and forecasts from PwC’s eighth annual “Global Entertainment and Media Outlook” report:
- Worldwide game spending grew 14.3%, to $31.6 billion, in 2006 and is expected to grow 18.5% in 2007, reaching $37.5 billion.
- By 2011, the worldwide gaming market will be worth $48.9 billion, growing at a compound annual growth rate (CAGR) of 9.1% during the five-year period 2007-2011. That CAGR contrasts with the 6.4% overall CAGR forecast by PwC for entertainment overall.
- In the US, PwC projects, the CAGR for game spending will be 6.7%, reaching $12.5 billion in 2011. This year’s 15.5% growth is expected to shrink to 3.3% growth in 2011.
- PwC estimates that the US gaming market grew 10.6% in 2006, reaching $9 billion, and it forecasts that the market in 2007will surpass $10 billion for the first time, reaching $10.4 billion.
- Asia/Pacific is expected to remain the highest-spending region, reaching $18.8 billion in videogame revenues in 2011, with a CAGR of 10.0%
- The videogame market for Europe, the Middle East and Africa (EMEA) is forecast to grow at a 10.2% CAGR for the period.
- PwC reduced its overall five-year forecast for gaming from last year’s estimates:
- For the US, it now projects a 6.7% CAGR, compared with the 8.9% it estimated last year.
- The EMEA forecast is now a 10.2% CAGR, down from 13.0% last year.
- Asia/Pacific: from 12.3% to 10%
- Worldwide: from 11.4% to 9.1%.
US game spending projections by segment:
- Online and wireless:
- Online: from an estimated $1.1 billion market in 2006 to $2.7 billion in 2011
- Wireless: more than doubling, from an estimated $499 million to $1 billion in 2011
- Console and handheld: from an estimated $6.5 billion in 2006 to a projected $7.9 billion in 2011.
- PC games: The segment decline is expected to continue, from an estimated $969 million in 2006 to $840 million in 2011.
- In-game advertising: from an estimated $80 million in 2006 to $950 million in 2011.
http://www.smarthousenews.com.au/Games_And_Devices/Software?Article=/Games%20And%20Devices/Software/F7C8J8P3
July 2nd, 2007 by admin
Game advertising spending in the US will grow from $370 million in 2006 to nearly $2.1 billion in 2012, according to a Parks Associates forecast, with ad spend increasing at a compound annual growth rate (CAGR) of 33% during that period.
“Advertising in electronic games had an average monthly household expenditure of less than 50 cents in 2006, while broadcast TV was at $37, meaning advertisers are not using the gaming medium to its full potential,” said Yuanzhe (Michael) Cai, director of broadband and gaming at Parks Associates, and author of the “Electronic Gaming in the Digital Home: Game Advertising” report.
July 2nd, 2007 by admin
Though 80% of game console households own a console capable of some form of DVD playback or online download, only 13% have used their console for movie viewing (some eight million U.S. households), according to new research from The Diffusion Group.
Among that 13%, the vast majority (74%) use only DVD for movie viewing, and approximately one-fourth have also gone online to purchase or rent a digital movie download.
“Today’s next-generation games consoles such as the Xbox 360 or Sony PS3 are true digital multimedia powerhouses,” said Dale Gilliam III, director of primary research and author of the report. “Yet very few of these devices are connected to the internet and, even though these same platforms may feature a high-definition DVD playback system, very few consumers are using them for non-gaming media applications.”
Other key findings of TDG’s new report:
- Approximately half of US broadband households have at least one game console (GC) in the home; 15% have two or more game consoles.
- Among broadband households that own a game console, 52% have a console in their family or living room, 24% have a GC in the second bedroom, and 21% have a GC in the den or gameroom.
- Though the majority (80%) own a console capable of playing DVDs, only 30% said they own a console that it actually enabled DVD playback - demonstrating that many consumers poorly understand the capabilities of today’s game consoles.
- Among those that own a game console connected to the internet, 42% have used the GC to watch an internet-based movie on their TV.
http://www.tdgresearch.com/On-the-Use-of-Game-Consoles-for-Movie-Viewing.htm
June 29th, 2007 by admin
Advertising in and around videogames is expected to grow exponentially over the next five years, becoming a $2 billion market by 2012, according to a new report released by digital market research specialist Parks Associates.
Overall, Parks Associates is bullish on the burgeoning ad medium, predicting that spending will climb from an estimated $370 million last year to more than $2 billion in 2012. Over that period of time, game advertising should achieve a compound annual growth rate of 33%, says the report – which should largely outpace the growth expected in other media, including the Internet.
Among the various videogame advertising tactics that Parks Associates tracks in the report, it’s dynamic in-game advertising – where ads are automatically delivered within games as they are being played – that holds the most potential. The firm expects that dynamic in-game ads (the specialty of firms such as Massive, Double Fusion and others) will account for a whopping 84% of the ad market, versus just 27% of the market today.
http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=1003605007
http://parksassociates.ecnext.com/coms2/summary_0256-8841_ITM
June 25th, 2007 by admin
It is easy to dismiss video games as pointless activities that only teenagers indulge in. BUT:
- The truth is that the average age of MMORPG players is around 26.
- In fact, only 25% of MMORPG players are teenagers.
- About 36% of players are married, and 22% have children.
So the MMORPG demographic is fairly diverse, including high-school students, college students, early professionals, middle-aged home-makers, as well as retirees. In other words, MMORPGs do not only appeal to a youth subculture.
On average, MMORPG players spend 22 hours a week in these environments and usage is not correlated with age. In other words, older players spend the same amount of time playing these games as younger players. Also, the strength of this appeal is further highlighted by the finding that 60% of players report having played an MMORPG for at least 10 hours continuously.
Another caricature of video gamers is that they are solitary hermits, but the data on MMORPG players show that 80% of MMORPG players play with someone they know in RL (a romantic partner, family member, or friend)on a regular basis. Thus, MMORPGs are in fact highly social environments where new relationships are forged and existing relationships are reinforced.
http://www.nickyee.com/daedalus/gateway_demographics.html
June 25th, 2007 by admin
I’ve always wondered exactly who MMORPG players were.
I typically use the people in my life as tiny focus groups to help me understand things that I’m not SO savvy about. With that said, I only have a few hard core PC gamer friends and they all have very little in common, beside the fact that they are all young (but I’m young so it only makes sense that my friends are) and are fairly tech savvy.
So I did some digging and found a pretty cool site called Project Massive that surveyed players to find out a little more about who they are.
BUT i can’t find out how many players took the survey, or how they recruited players to take the survey so please take the info below with a grain of salt.
June 25th, 2007 by admin
I found this report from Screen Digest on the MMOG market and while they are charging a nice chunk of change for the full report ($4090.00), they do include some commentary and tasty key data findings to lure prospective report buyers in. Check it out.
The market value for massively multiplayer online games in the West hit $1bn for the first time in 2006. The North American subscription market was worth $576m, while Europe was worth $299m.
While subscription services continue to dominate in the West, accounting for 87% of the market, virtual item sales and in-game advertising have also made their mark during the year.
Screen Digest forecasts that by 2011 over 10 million subscription accounts will generate $1.5bn in consumer spending on this growing sector of the online games market.
There is stronger potential for subscription growth in Europe than in the more established North American market due to less market saturation and stronger broadband growth.
Key findings:
- Market value for MMOGs in the West hit $1bn for the first time in 2006. Market growth has been helped by the introduction of more casual MMOG experiences and new business models.
- The North American subscription market was worth $576m, while Europe was worth $299m.
- By 2011 the MMOG subscription market will be worth over $1.5bn and Europe will enjoy the stronger growth between the two Western regions.
- Over the five year period, Germany will remain the largest subscription market in Europe, followed by the UK.
- France will see the most significant value growth of over 16% CAGR over the term, whilst Spain and Italy will both experience subscription value CAGR of more than 15%.
- World of Warcraft is by far the most popular subscription game, accounting for 54% of the subscription market in 2006, generating revenue of $471m. Its next nearest competitor was Runescape from UK developer/publisher Jagex.
You can get a sample from this report (meaning you can see the first 9 pages) here: http://www.screendigest.com/reports/07westworldmmog/NSMH-6ZFF9N/sample.pdf
http://www.screendigest.com/reports/07westworldmmog/readmore/view.html
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