Consumer financial sentiment remains fragile with many still feeling the impact of the cost-of-living crisis. This may dampen consumer demand for purchases of high-end gaming consoles, monitors and portables, until more robust consumer confidence returns. Mobile gaming, whose ad-supported freemium model dominates can however, continue to benefit.
One of the main challenges for the gaming industry will be the balance of accessibility and originality as technology evolves. Games growing in scope could reduce the number of titles gamers play, while competitive online play will also see gamers focus their efforts on a narrow range. Big franchises will continue to play a big role, but it is important there is space for new, entertaining titles to invigorate the market.
Despite this, gaming remains a powerhouse and it offers access to consumers through a wide variety of platforms. There is strong opportunity for growth in cloud gaming, particularly as broadband speeds improve. Handhelds will also continue to perform well, boosted by portability and the convenience of accessing game titles via the cloud offers on the move. The handheld market will see growing competition, with the potential arrival of a Microsoft handheld, as well as Nintendo launching a follow up to its hugely successful Switch console.
This report looks at the following areas:
- Comprehensive insights into the ownership, behaviours, preferences and demographics of consumers who play, and pay for video games and gaming content
- The continuing impact of the cost of loving crisis on the market for gaming consoles, games and peripherals
- How technological innovations both in hardware and software are driving the gaming experience and giving brands a competitive edge, as they cater to serious, engaged gamers
- Consumer attitudes towards gaming, including segmentation analysis of gamer types and how brands can target gamers
The convenience and reach of cloud gaming can see portables and mobile benefit, whilst tailored high end hardware can support the hardcore gamer.
Joe Birch, Senior Technology and Leisure Analyst
Market Definitions
For the purposes of this Report, Mintel has used the following definitions:
- Cloud gaming is a method of playing video games by streaming them from remote servers to a local device.
- Static console gaming refers to playing video games on a dedicated home video game console.
- Extended reality (XR) is an umbrella term that encompasses immersive technologies such as virtual reality (VR), augmented reality (AR) and mixed reality (MR), which merge the physical and digital worlds to create interactive experiences.
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Executive Summary
- Opportunities for the gaming market
- Game-as-a-Service model can serve consumers varied ways of playing games
- Provide the infrastructure to support the super engaged gamer
- Promote premium hardware and accessories to help feed the avid gamers passion
- Market dynamics and outlook
- Ultra fast networks will become commonplace in the next 10 years
- Graph 1: average fixed broadband data use per month in GB, 2013-23
- Market predictions
- What consumers want and why
- Mobile is the gateway device to gaming
- Graph 2: methods to play video games, 2024
- Mobile gaming apps have the broadest church, whilst digital downloads look set to flourish
- Graph 3: gaming channels by generation, 2024
- Focus on winning the attention of habitual gamers
- Graph 4: frequency of playing video games, 2024
- Graph 5: time spent playing video games, weekly, 2024
- Digital content will continue to lead the way
- Graph 6: paid for video game content, 2024
- Gaming is a lifestyle that brands can connect with
- Graph 7: attitudes towards gaming, 2024
- Innovation and marketing
- Microsoft goes for multiplatform, whilst Sony leans into its legacy
- Brands target hardcore gamers with high-end laptops, handhelds tech and co branded peripherals
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Market Dynamics
- Market drivers
- Consumers have optimism over their finances, but the cost-of-living crisis is a real concern for nearly half
- Graph 8: financial wellbeing index, 2016-24
- Infrastructure to support gaming experience continues to develop, boosting gaming experience
- Ultra fast networks will become commonplace in the next 10 years
- Graph 9: average fixed broadband data use per month in GB, 2013-23
- Technological advancements will push PC gaming’s capabilities
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What Consumers Want and Why
- Gaming platforms
- Mobile can be the gateway device to gaming
- Graph 10: gaming platforms, 2024
- Smartphone brands will continue to showcase gaming utility on devices
- Younger consumers dominate, but older audiences are in the gaming ecosystem
- Graph 11: devices used to play video games, last 3 months, 2024
- Portables are not just a boy’s game
- Computers can overtake game consoles as the key home gaming device
- Graph 12: devices used to play video games, NET last three months, 2024
- Build games for cross platform synchronicity
- Graph 13: repertoire of devices used to play video games, 2024
- Ownership of gaming devices
- PlayStation proves the most popular console brand, with recent Xbox and Nintendo Switch models providing the competition
- Graph 14: personal ownership of gaming devices, 2024
- Towers of power are the bedrock for the dedicated gamer
- Gaming channels
- Mobile gaming still the powerhouse of driving gaming’s audience
- Graph 15: gaming channels, 2024
- Mobile gaming apps have the broadest church whilst digital downloads look set to flourish
- Graph 16: gaming channels by generation, 2024
- Disc free future beckons, with gaming downloads the preferred method of playing video games
- Gaming subscription services will hope to boost uptake with extension of IP
- Frequency of gaming
- Males in the daily video gaming habit
- Video gaming is habitual, focus on winning attention
- Graph 17: frequency of playing video games, 2024
- Promote peripherals for ardent PC gamers
- Graph 18: frequency of gaming, by device used for gaming, 2024
- Headsets and Desktop owners play more frequently
- Upsell content to affluent frequent gamers
- Short gaming sessions are key for gamers
- Graph 19: time spent playing video games, weekly, 2024
- Gaming purchase habits
- Digital content will continue to lead the way
- Graph 20: recent gaming purchases, 2024
- Younger generations most keen on purchasing in-game content
- Mobile is a key storefront for brands amongst young gamers
- Graph 21: in-game purchases made on mobile app, by age and gender, 2024
- Push collector’s editions with other physical content
- Graph 22: purchase of video game content and physical releases, 2024
- Attitudes towards gaming
- Casual can drive engagement with more lucrative paid for content
- Graph 23: attitudes towards gaming, 2024
- Free to play games feed the daily habit
- Create branded communities around gaming
- Graph 24: attitudes towards social gaming, 2024
- Leverage the team dynamic
- Upsell the tools to enhance the gaming experience
- Graph 25: attitudes towards hardcore gaming, 2024
- Push handheld peripherals for maximum flexible performance
- Graph 26: attitudes towards video gaming, by use of handheld games console to game, 2024
- Empowering self-expression: gaming helps consumers find identity
- Graph 27: attitudes towards gaming as an identity, 2024
- Social gamers see the value in community building
- Those that are defined by gaming can be valuable targets for peripherals and associated gaming events
- Graph 28: attitudes towards gaming, by strong agreement with “gaming is a core part of my identity”, 2024
- Live gaming events appeal to fathers
- The gaming consumer: consumer segments
- Identifying key consumer segments based on attitudes towards gaming
- Graph 29: consumer segments of gamers, 2024
- Casual games cater to older fun-seeking gamers
- Graph 30: casual gamers by age, 2024
- Semi serious gamers count older generations amongst their ranks
- Graph 31: semi serious engaged gamer by age and gender, 2024
- Hardcore: target the serious gamers with the tools and services to indulge their passion
- Graph 32: hardcore gamer by age and gender, 2024
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Innovation And Marketing Trends
- Competitive strategies
- Xbox maker Microsoft engages with multiplatform strategy
- With Cloud Gaming and Game Pass to be a priority, and a new handheld in the works
- Sony leans into legacy and community to cater to hardcore fans and develop the next generation
- Sony releases the first upgrade to the popular PS5, with the PS5 Pro
- Sony announces potential Vision-pro competitor
- Nintendo teases Nintendo Switch follow-up
- Nintendo pushes revamped nostalgia with new HD versions of classic titles
- Samsung pushes gaming focus along with connectivity in its brand ecosystem
- Entertainment brands look to push their gaming capabilities
- Launch activity
- Microsoft launches all digital X Box Series X
- Apple’s Vision Pro finally launches in the UK
- Samsung launches 3D monitor and series of OLED monitors as entertainment hubs
- CORSAIR teams up with Call of Duty franchise for release of licensed tech products
- New gaming handhelds push the mobile experience
- Gaming laptops target high end gamers
- EE launches game-oriented broadband package
- Advertising and marketing activity
- 2023’s advertising spend boosted by Sony
- Graph 33: total above-the-line, online display and direct mail advertising on game downloads, games hardware, games software, mobile apps – games and consoles & pre owned games and consoles, 2020-24*
- Scopely spends as in supprt of mega hit mobile game
- Graph 34: total above-the-line, online display and direct mail advertising on game downloads, games hardware, games software, mobile apps – games and consoles & pre owned games and consoles of top 10 advertisers, year to September 2024
- Consumer spending on games brands
- Festive period and summer key occasions for engagement and spend
- Graph 35: monthly number of customers within cohort, 2023-24
- Graph 36: monthly number of transactions within cohort, 2023-24
- PlayStation customers have the highest average annual spend
- Graph 37: average total spend per customer, 12 months to October 2024
- Graph 38: spend per transaction across different gaming brands, 2024
- Xbox and PlayStation account for similar proportions of customer spending in entertainment and leisure
- Graph 39: percentage of total spend that PlayStation Network has within entertainment & leisure for PlayStation Network customers, 2024
- Graph 40: percentage of total spend that Xbox has within entertainment & leisure for Xbox customers, 2024
- Gambling is a key area for Xbox and PlayStation Network customers
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Appendix
- Report scope and definitions
- Market definition
- Abbreviations and terms
- Abbreviations and terms (continued)
- Consumer research methodology
- Snoop SpendMapper coverage
- Nielsen Ad Intel coverage
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