Click here to close now.

Welcome!

News Feed Item

Eighth-Generation Consoles are Reenergizing the Video Game Market, Shows New CEA Gaming Study

Consumer excitement surrounding the eighth-generation home gaming console releases has reenergized the gaming market, according to the latest research released today by the Consumer Electronics Association (CEA)®, driving a projected 85 percent increase in wholesale revenue for home video game consoles in 2014. The study, The Future of Gaming, gauges consumer behaviors regarding ownership, device use, gamer segments, video game attachment rates, purchase intent and more.

Gaming Ownership

For ownership of traditional gaming hardware, seventh-generation consoles still lead the way. Ownership among online U.S. consumers is highest for the Nintendo Wii (35 percent), Microsoft Xbox 360 (29 percent) and Sony PlayStation 3 (24 percent).

Since their debut in 2013, the new eighth-generation consoles are quickly gaining steam in terms of ownership. The Sony PlayStation 4 and Microsoft Xbox One are now owned by 11 percent and eight percent, respectively, of online consumers.

While more than half of gamers (54 percent) learn the most about games from friends, family and co-workers, a third say they also pay attention to retailer websites (33 percent), TV commercials (31 percent) and gaming news websites (30 percent). Consumers also prefer to shop for video games primarily in brick-and-mortar locations: mass merchants (36 percent), general electronics stores (32 percent) and specialty electronics stores (32 percent). A third (31 percent) of consumers also shop for video games online.

Primary Gaming Devices

Portable connected devices are now primary gaming devices for many consumers. According to CEA’s 16th Annual CE Ownership and Market Potential Study, smartphone and tablet ownership rates (64 and 45 percent, respectively) are at their highest rates in history. One in ten gamers say their primary gaming device is a smartphone (12 percent) or tablet (nine percent), on par with or closely following seventh-generation consoles such as the Xbox 360 (16 percent), PlayStation 3 (12 percent) and Wii (10 percent).

Among consumers who stated their primary gaming device is a smartphone, the most common operating system is Android (51 percent), followed by iOS (41 percent) and Windows Phone (six percent).

“The gaming industry has been abuzz for months with sizzling sales figures for the eighth-generation consoles, as well as record-breaking releases of games,” said Kevin Tillmann, senior research analyst, CEA. “Rather than simply competing with one another, the eighth-generation consoles are driving gaming sales and enthusiasm across the board. The industry remains a two-headed beast – comprised of traditional game consoles and portable connected devices like smartphones and tablets – but it is certainly stronger than ever.”

Games: Physical and Digital

According to gamers, their purchase choices most often come down to the quality of games (89 percent) on the system or device. Other common reasons gamers flock to a specific device include the price of games (79 percent), ease-of-use (77 percent), price of system (76 percent) and graphics (75 percent).

In terms of the amount of games owned per primary gaming device, the attachment rates are highest for the Sony PSP, followed by gaming PCs and the Xbox 360. Most of these products have been in the marketplace for a significantly longer amount of time than the Xbox One and PlayStation 4, but both of those new consoles are showing strong attachment rates, especially with digital games, so early in their product lifecycles. The PlayStation 4 digital download attachment rate is 57 percent of physical discs (compared to 42 percent for PlayStation 3) and for Xbox One it is 62 percent (compared to 37 percent for Xbox 360).

Enhancing the Gameplay Experience: Companion Products

More than half of gamers (55 percent) indicate they purchased at least one other companion product to improve the gameplay on their primary device. The most common purchases include a television (35 percent) and rechargeable batteries (13 percent).

Gaming Market Overview

According to CEA’s U.S. Consumer Electronics Sales and Forecast Study:

  • Home video game consoles: Wholesale revenue is predicted to reach 5.2 billion USD in 2014, an increase of 85 percent over 2013. An additional 12 percent growth is projected in 2015, as the surge of home console sales in 2014 stabilize.
  • Portable consoles: CEA projects total portable console wholesale revenue of 506 million USD in 2014, a seven percent increase over 2013. However, wholesale revenue is expected to fall slightly to 471 million USD in 2015, a seven percent decrease, as the portable console market faces continuous pressure from portable connected devices, such as smartphones and tablets.
  • Video game software: CEA projects 13.6 billion USD in revenue for 2014, an increase of 9 percent over 2013, due in part to attachment rates for new consoles. Additionally, revenue for 2015 is projected to be 14.4 billion USD, an increase of six percent over 2014.

The Future of Gaming was designed and formulated by CEA Market Research, the most comprehensive source of sales data, forecasts, consumer research and historical trends for the consumer electronics industry. Please cite any information to the Consumer Electronics Association (CEA). The complete study is available at no cost to CEA member companies at members.CE.org. Non-members may purchase the study at the CEA store.

About CEA:

The Consumer Electronics Association (CEA) is the technology trade association representing the $208 billion U.S. consumer electronics industry. More than 2,000 companies enjoy the benefits of CEA membership, including legislative advocacy, market research, technical training and education, industry promotion, standards development and the fostering of business and strategic relationships. CEA also owns and produces the International CES – The Global Stage for Innovation. All profits from CES are reinvested into CEA’s industry services. Find CEA online at www.CE.org, www.DeclareInnovation.com and through social media.

UPCOMING EVENTS

  • CES Unveiled Warsaw
    June 17, 2014, Warsaw, Poland
  • CE Week
    June 23-27, 2014, New York, NY
    • CE Week Exhibits
      June 25-26, 2014, New York, NY
  • CEA Innovate!
    Sept. 30-Oct. 2, 2014, Phoenix, AZ
  • CES Unveiled Paris
    October 22, 2014, Paris, France
  • CE Hall of Fame Dinner
    November 10, 2014, New York, NY
  • CES Unveiled New York
    November 11, 2014, New York, NY
  • CES Unveiled Las Vegas
    January 4, 2015, Las Vegas, NV
  • 2015 International CES
    January 6-9, 2015, Las Vegas, NV

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Overgrown applications have given way to modular applications, driven by the need to break larger problems into smaller problems. Similarly large monolithic development processes have been forced to be broken into smaller agile development cycles. Looking at trends in software development, microservices architectures meet the same demands. Additional benefits of microservices architectures are compartmentalization and a limited impact of service failure versus a complete software malfunction. ...
"We help to transform an organization and their operations and make them more efficient, more agile, and more nimble to move into the cloud or to move between cloud providers and create an agnostic tool set," noted Jeremy Steinert, DevOps Services Practice Lead at WSM International, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
The basic integration architecture, as defined by ESBs, hasn’t changed for more than a decade. Most cloud integration providers still rely on an ESB architecture and their proprietary connectors. As a result, enterprise integration projects suffer from constraints of availability and reliability of these connectors that are not re-usable across other integration vendors. However, the rapid adoption of APIs and almost ubiquitous availability of APIs amongst most SaaS and Cloud applications are ra...
Agile, which started in the development organization, has gradually expanded into other areas downstream - namely IT and Operations. Teams – then teams of teams – have streamlined processes, improved feedback loops and driven a much faster pace into IT departments which have had profound effects on the entire organization. In his session at DevOps Summit, Anders Wallgren, Chief Technology Officer of Electric Cloud, will discuss how DevOps and Continuous Delivery have emerged to help connect dev...
"What Dyn is able to do with our Internet performance and our Internet intelligence is give companies visibility into what is actually going on in that cloud," noted Corey Hamilton, Product Marketing Manager at Dyn, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
Manufacturing has widely adopted standardized and automated processes to create designs, build them, and maintain them through their life cycle. However, many modern manufacturing systems go beyond mechanized workflows to introduce empowered workers, flexible collaboration, and rapid iteration. Such behaviors also characterize open source software development and are at the heart of DevOps culture, processes, and tooling.
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, will explore the IoT cloud-based platform technologies drivi...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of...
Live Webinar with 451 Research Analyst Peter Christy. Join us on Wednesday July 22, 2015, at 10 am PT / 1 pm ET In a world where users are on the Internet and the applications are in the cloud, how do you maintain your historic SLA with your users? Peter Christy, Research Director, Networks at 451 Research, will discuss this new network paradigm, one in which there is no LAN and no WAN, and discuss what users and network administrators gain and give up when migrating to the agile world of clo...
SYS-CON Events announced today that JFrog, maker of Artifactory, the popular Binary Repository Manager, will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based in California, Israel and France, founded by longtime field-experts, JFrog, creator of Artifactory and Bintray, has provided the market with the first Binary Repository solution and a software distribution social platform.
"We got started as search consultants. On the services side of the business we have help organizations save time and save money when they hit issues that everyone more or less hits when their data grows," noted Otis Gospodnetić, Founder of Sematext, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, discussed how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at th...
Containers are revolutionizing the way we deploy and maintain our infrastructures, but monitoring and troubleshooting in a containerized environment can still be painful and impractical. Understanding even basic resource usage is difficult – let alone tracking network connections or malicious activity. In his session at DevOps Summit, Gianluca Borello, Sr. Software Engineer at Sysdig, will cover the current state of the art for container monitoring and visibility, including pros / cons and liv...