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
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at 18th Cloud Expo, Charles Kendrick, CTO & Chief Architect at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and devel...