UK Video Games and Consoles market report
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Providing the most comprehensive and up-to-date information and analysis of the Video Games and Consoles market, and the behaviours, preferences and habits of the consumer.
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What are the key challenges facing the industry and how fast are its rates of growth? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?
Products covered in this Report
Static consoles are devices designed primarily for gaming in the home. They require connection to a television or external monitor. Static console alternatives are static consoles that are not manufactured by any of the three major players in the static console market – ie Microsoft, Sony and Nintendo. Steam Machines fall under the definition of the term static console alternatives. Steam Machines, NVidia Shield devices and other static console alternatives are not included in Mintel’s market size and forecast.
Current-generation static consoles are the Xbox One, Nintendo Switch and PlayStation 4.
Previous or last-generation static consoles are the Wii U, Xbox 360, PlayStation 3 and Wii.
Portable consoles are devices designed primarily for gaming outside of the home. Handheld devices have a built-in display (ie do not need to be connected to a TV or external monitor) and support cartridges or smaller discs. Smartphones and tablets are not included in the definition of handheld consoles.
Current-generation handheld consoles are the PlayStation Vita and Nintendo 3DS. The Nintendo Switch is a hybrid console that can be played in both static and portable mode; it is included in Mintel’s market size estimate.
Post-purchase micro-transactions are not included in Mintel’s software market size data.
What you need to know
The console market is in a lull, with the major brands, the PS4 and Xbox One, well established. Interim updates to the consoles, the Xbox One X and PS4 Pro have provided some boost to sales, but their focus on additional processing power, internal memory and 4K HDR gaming has meant they are predominantly aimed at the most ardent gamers. While some yet to buy a current generation console will be persuaded by price promotions, the majority are awaiting the next-generation launches from Microsoft and Sony, expected in two years. The first hybrid static-portable console, the Nintendo Switch, has seen strong initial take-up and provided a major boost to 2017 console revenues, but 2018 and 2019 are set to be quiet.
Volume sales of video games have declined for many years despite gaming becoming more mainstream, more women entering the market and an increase in the frequency of play. This is due to increasingly complicated open-world games requiring longer hours of play, and the rise of competitive online gaming. People are playing fewer games for far longer, attempting to improve their performance and compete against, friends, family and strangers online and across platforms. The majority of bestselling games are all new versions of existing franchises with large marketing budgets and strong brands, primarily aimed at online play and competitive gaming.
Shifting patterns of play have consequently altered revenue streams in the gaming market. Platforms such as Xbox Live and PlayStation Plus require subscription fees to access online play, and with over half of PS4 and Xbox One owners playing online, this has become a core revenue stream. In-game payments have also grown as people seek to gain a competitive edge with additional content and features. The subscription model is becoming more important, with games focusing on seasons rather than completion and charging regular fees. This has allowed Fortnite to become the most popular game worldwide and generate substantial revenues despite being free to download.
The rise of downloadable games, demos and additional content has seen internal memory become an increasingly important issue for gamers. Consoles have responded by offering increased memory with each iteration of their devices and this will continue into the next generation. With 4K HDR gaming and VR (virtual reality) gaining traction, internal memory will be more important than ever.
Expert analysis from a specialist in the field
Written by Adrian Reynolds, a leading analyst in the Technology sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.
Volume sales of video games are consistently declining despite the rising popularity of gaming and increased frequency of play. This reflects the extent of competitive online play, with gamers seeking to improve their performance and focus on fewer titles. Consequently, revenue streams are shifting towards online subscriptions, in-game payments for additional content and season passes.
What you get
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
* This is a sample representation of the report layout and does not reflect the research included in this report.
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