Tuesday, 24 February 2009

US videogames market 2008

NPD Group analyst Anita Frazier, 2009 DICE Summit: As of 2008, 58 percent of the U.S. population aged 13 and over plays video games. "Amongst every dollar spent on entertainment, video games have the most share," said Frazier, and this translates to 27 percent of each entertainment dollar spent in 2008.One area which NPD has been having trouble with is digital downloads, but they did reveal some information. "PC game sales at retail have declined by over 50 percent in the last seven years," she said, but NPD does track subscriptions, which showed them that PC gaming is at least twice what retail shows.Though Frazier reminded us that this was a very rough estimate, NPD guesses that the total content picture for the game industry, including PC and console, might include non-retail sales of $2.3 billion overall, and retail sales of $11.7 billion."Online gaming has increased two percentage points from last year," she added, and within the console space, she revealed that of "the top three systems used for online play, it’s the Xbox 360, followed by the Wii, followed by the PS3. Last year, the PS2 was in the second spot."As a point of triumph for the industry, Frazier revealed new data that just arrived in her inbox last night. "The number of people gaming this year has increased to 61 percent [of the U.S. population]," she said. "The industry has gained an additional six million gamers over the last year.""About half of unit sales are for kids 17 and under," she added. "The retail market is very dominated by young people." The audience is 72 percent male, but women control "about half the spending in video games," says Frazier, reminding us that casual and more family-oriented games are spurring industry growth.

Gamasutra Feb 09

Thursday, 5 February 2009

Vidgame software sales see double-digit spike in 2008

While taking a slide in Japan, US and UK video game sales are up according to the latest data released in the Top Global Markets integrated monthly report derived from The NPD Group, GfK Chart-Track Limited and Enterbrain POS data. The three market research firms have combined their vidgame software unit sales data for the world's three largest gaming markets. The resulting report shows unit sales across the three regions were up by 11% in 2008, totaling 409.9 million units. The overall number, however, doesn't reflect the fact that unit sales were up by 15% and 26% in the US and the UK, respectively, while Japanese sales were down by 13%, largely as a result of the decline in portable and console software sales in the country. The PS2 software market in Japan saw a 46% decrease in unit sales in 2008 - even sales for the popular Nintendo DS were down, though new-gen consoles (PS3, Wii and Xbox 360) saw positive year-over-year growth. Meanwhile, the UK experienced the largest aggregate and category growth, with console software sales enjoying a 38% increase and portable software sales increasing by 6%. State-side, console software sales spiked 22% with portable software sales moving up by 2%. Kid games are also topping the charts, as the report found that three of Nintendo's family-friendly titles in 2008, Mario Kart Wii, Wii Fit and Super Smash Bros: Brawl were in the top five games of 2008. KIDSCREEN FEB 09

Thursday, 15 January 2009

Games will 'eclipse' other media

Video games are poised to "eclipse" all other forms of entertainment, according to games studio boss Mike Griffith. The Activision chief made the bold call during a keynote speech at the Consumer Electronics Show in Las Vegas. He said video games were prospering as interest in almost every other category of entertainment declines. Mr Griffith said social gaming, more interactivity and better technology would help gaming dominate the entertainment landscape in future. He said: "Movies, recorded music and TV - these are all stagnating or contracting entertainment sectors." He quoted US market statistics which showed that between 2003 and 2007 sales of movie tickets fell by 6%; the number of hours of TV watched dropped by 6%, sales of recorded music slumped 12% and purchases of DVDs remained flat. Over the same four-year period, said Mr Griffith, the video game industry grew by 40%. "Video games are poised to eclipse all other forms of entertainment in the decade ahead," he said. The success of Guitar Hero, said Mr Griffith, showed how influential gaming had become on many other entertainment sectors. He quoted Nielsen SoundScan data which showed that artists whose music featured on Guitar HEro had seen a rise in download sales of 15-843%. The game had proved so popular that some bands, such as Metallica and Aerosmith, were bringing out a version of the game that only features their music. "Music has a history of evolving through technology and we are at the beginning of the latest chapter in that story," he said. Technology, community and interactivity were the three factors that would help the video game industry become the driving force in entertainment, said Mr Griffith. The powerful processors in consoles such as the PS3 and Xbox 360 meant that games were getting ever more realistic and immersive, he said. "Games are no longer pre-set trips through linear mazes," said Mr Griffith. "They are becoming a legitimate story-telling medium that rivals feature films." He cited the video game of the latest James Bond film Quantum of Solace (QoS) as an example of how games were taking over. "The moviegoer is passive whereas the gamer is active and part of the game itself," he said, adding that anyone who played QoS would spend more than 50 hours in the company of James Bond compared to only 106 minutes if they watched the movie. The communities growing up around titles such as Guitar Hero World Tour also showed how entertainment was changing, he said. Owners of the game had created 141,000 tracks of their own using its in-built mixing studio and uploaded them to the Guitar Hero community site, which now has more than 600,000 members, he said.
More interactive controllers such as the guitars and drums in Guitar Hero and the Wiimote on Nintendo's gaming console were also helping encourage more people to take up gaming, said Mr Griffiths. "Those new controllers are encouraging new ways to become more socially active in gaming," he said. "They are bringing in a whole new group of consumers that have never before been involved in gaming." He concluded: "The one thing that is for sure is entertainment is changed forever with gaming." BBC JAN 09

Game industry finally notices girls

Design & baby-sitting video games target a growing market
Stereotypes aside, the booming video game industry is becoming less male-oriented. With the release of Nintendo DS and Wii, "we're starting to see a much higher influx of female gamers," said Rich Valiquette, director of development for Tornado Studios in Tulsa. And major publishers are starting to take notice. Tornado Studios is a new company based off an old one called 2015, which produced popular games like "Men of Valor" and "Medal of Honor: Allied Assault," Valiquette said. Now, they're working on a game that's geared largely toward girls. He couldn't give more details than that, but it's expected to come out this year. A recent study showed that game usage among girls jumped from 50 percent in 2006 to 57 percent in 2008, said Ann Hamilton, a senior brand manager with game publisher Ubisoft. The forum for girls has doubled in the past two years, so they're playing even more now. Everyone is, after peeking at the figures. With more than 3.6 million combined systems sold in November, Wii and Nintendo DS set new hardware sales records, according to the independent NPD Group, which tracks video game sales in the United States. The Wii console sold more than 2 million in November, a new all-time record for a non-December month. And the Nintendo DS system sold more than 1.56 million in November, which is now the second-highest total for a non-December month in history. In total, the Wii console has sold 15.4 million in the United States since it launched in November 2006, and Nintendo DS has sold nearly 24.6 million in the United States since it launched in November 2004.
"What's driving the Wii sales is the use of Wii by women, girls and families," Hamilton said. "It's a really female-driven platform." Ubisoft — whose popular titles include "Assassin's Creed," "Brothers in Arms" and "Prince of Persia" — has two lines of video games for girls, Hamilton said — Imagine and Ener-G. The 16 titles from Imagine allow girls to role-play in real-life activities, including fashion, interior design, baby-sitting, even acting. Ener-G was launched most recently as the first-ever sports line in video games for girls. "Girls wanted sports games to play, as well," such as gymnastics and horseback riding, Hamilton said. Ubisoft has a cheerleading game coming out in February and a figure-skating game in March, both on Nintendo DS. These interactive games are great for self-expression and creativity among girls, Hamilton said. Like with Imagine's "Fashion Designer New York," girls can create clothes (from picking necklines and lengths of sleeves to what color the garment will be), as well as accessorize the outfits, choose models to wear them and show their designs in a fashion show. Such games are great for socialization, too. "Video games kind of have this reputation for being a solo activity," Hamilton said, but 65 percent of children playing them are doing so with others. Companies doing the best job of reaching this growing market are those that realize girls are a key part of the gaming community, Valiquette said. TULSA WORLD JAN 09

Friday, 19 December 2008

CDs Purchases Down, Video Games Help Sales

Sales of physical CDs continued to decline in the third quarter while digital download sales saw a small uptick, according to data from NPD Group. Artists who participated in music-based video games, meanwhile, also saw a bump in album sales.
The number of CDs sold during the third quarter dropped 19 percent from the same period last year, leading to a 2 percent decline in overall music sales.
About 34 percent of teenagers abandoned CDs, while 36 percent of buyers aged 26 to 35 did the same. CD sales only saw about a 10 percent decline among those 36 and older.
Digital downloads from online stores like iTunes and AmazonMP3, however, were up about 2 percent from last year, while legal music download volumes increased 29 percent during the quarter. About 15 percent of Internet users get their music from online music stores, NPD said.
"Alternative distribution deals in mobile and social networking are important ways for the music industry to fill the gap left by the decline in traditional revenue streams," said Russ Crupnick, NPD's entertainment industry analyst.
The popularity of music-based video games like Guitar Hero and Rock Band helped increase album sales for the artists featured in the games. About 22 percent of overall music buyers and 35 percent of those who are younger than 35 said they play these games and were inspired to purchase the music after playing.
"Year-to-date through November, the music and dance genre was the best- selling genre in video games, representing 16 percent of total software sales for the year," NPD video games analyst Anita Frazier said in a statement.
"Even though gaming competes with music for the consumer's entertainment wallet share, music-related games are evolving into an important source for music discovery that can have positive revenue implications for the recording industry," Crupnick said.
PC Mag Dec 08

Monday, 10 November 2008

Mobile video slow

"This year, for the first time, consumers will buy more video-enabled smartphones than TVs.
According to forecaster Research and Markets, sales of such devices will tip 300 million in 2008, which trounces the expected sales of tellies.And since there’s been a global financial meltdown since then (which should affect sales of plasmas far more than handsets) the difference could be even more marked.So will families be gathering around their LG Secrets to watch American Idol? No, of course they won’t. Don’t be stupid. But the point is that they could if they wanted. Why? Because handsets are big, screens are bright and, most important of all, data tariffs that make such high bandwidth activity tenable are breaking out all over the place. It’s these underlying factors that make the market watchers so excited about the future of mobile video.To pluck one of many forecasts out of the air, MultiMedia Intelligence says revenue from the sector will soar from $3.5 billion in 2008 to $15 billion by 2012.Every week seems to bring with it a dramatic new service launch. In the last few months, for example, Paramount and Motorola launched a service offering users access to full streamed or downloaded movies.At around the same time France-based Actimagine gave broadcasters and second tier operators an easy route to the mobile video market with Mobiclip, a storefront that lets users stream or download DVD-quality video via sideload, wi-fi or 3G. Weeks later Nokia confirmed that its flagship N96 would not only link to a made-for-purpose mobile TV channel, but also run BBC’s iPlayer video replay app.The latter is fascinating. BBC iPlayer has been wildly successful on the wired web, with more than 20 million programmes watched through the service in August alone. This has put huge pressure on broadband networks and caused some tension between the Beeb and ISPs.What kind of aggro could a mobile iPlayer be storing up? Jeremy Flynn, a former Vodafone exec now heading up the video-calling specialist D2See, has a view. He believes the limits on data allowances will ensure that the billshock issue doesn’t go away – and that this will inhibit the market.He says: “The fundamental hindrance to growth surrounds the actual and perceived cost of data. Most data plans allow at least 200Mb of data per month, and that’s about three hours of IP streamed data. That’s okay for video usage, but the cost of exceeding the bundle can be very high. On Vodafone UK’s prepaid tariff, you get charged £1 for up to 15Mb in a day, but the run-on rate is £2/Mb. So while watching 15 minutes of video would cost £1 in data charges, watching 30 minutes would cost £31 in data charges. Then there are contractual issues – T-Mobile reserves the right to block off-portal video streaming, and on Orange contracts it’s specifically excluded from the plan.”These issues are clearly still holding the market back. Matthew Feldman, CEO of Versaly, which runs the video aggregator Vmbc.tv, says: “Although I see the number of mobile video services and destinations increasing, our average number of views per service has been flat. As with any content, its all about marketing and promotion. Many video services have too much content and less than optimal navigation. Thus, only the featured or top video programming get all the views. We don’t see a big different between branded and unbranded, provided they are featured/promoted equally.”Most insiders would agree with Feldman. In the UK, Saffron Digital, which runs video on demand services for T-Mobile and Vodafone and is powering the Motorola/Paramount store, is witnessing steady growth – into the tens of thousands on the most popular clips. But it too recognises the need for promotion.CEO Shashi Fernando says: “I look at the made-for-mobile content available and I think some of it is genuinely fantastic. But it’s never been properly marketed to consumers. I still believe that the biggest demographic among mobile video watchers is people in the industry. They’re the ones watching. Still, by spreading the word this group can reach millions.”Fernando is not alone in believing that the Apple iPhone/App Store is transforming the mindset of everyone that uses it – and focusing the minds of everyone else. He adds: “Motorola, for example, is being brave and wise to take on Apple with its own store. It had to put a marker in the sand.”Damian Mulcock, CEO of video services specialist Mobix, agrees that Apple is raising the game. “The iPhone has gone a long way towards creating greater awareness amongst consumers of mobile media services. The industry needs to learn from this and make propositions that focus on value and not jargon,” he says. Still, not everyone is of the opinion that video is just for the future. At MTV, the current numbers are truly impressive, with the broadcaster reporting nine million streams in the US in August, up from five million in January.Greg Clayman, EVP of digital distribution and business development at MTV Networks, has no doubt that the simplicity of the operator offer is what lies behind this success.He says: “We don’t really have pay-per-download over here. You sign up for a simple subscription for VOD clips (as well as other mobile services) and pay one price for all you can view. That’s what VCast on Verizon and CV on AT&T are. And it’s working wonders for adoption.”MTV’s success has been achieved on the back of paid-for clips (albeit within a subscription) but the company is now set to explore ad-funded video too, with the US Air Force already signed up to provide pre-roll ads on made-for-mobile series The How To Show.Many believe this model will provide the bulk of video revenues to the business in years to come, even though there are still doubts about the level of demographic targeting possible and the quality of metrics returned to advertisers. These factors seem to have done for provider Rhythm New Media in the UK despite high profile deals with 3.Still, others are tackling the issue head on. Users who subscribe to services delivered by Velti's enhanced Mobile Marketing Platform (MMP) are asked to provide personal data the first time they sign up. This information, combined with carrier and network characteristics provided by Vantrix, is used to target consumers with more relevant material. Of course, there’s more to video on mobile than the downloading/ streaming of short clips. Take video ringtones, for example. The ringtone remains the foundation of the entire mobile content biz, so its video successor represents an intriguing proposition. Israeli firm Vringo is trying to make it work, but developing the concept around user generated rather than commercial content.Andrew Perlman, Vringo’s SVP of content and community, says: “The ringtone is still the most consumed form of mobile content… and now sophisticated users are using their own clips and inserting them as ringtones.” ME Nov 08

Wednesday, 5 November 2008

Games 'to outsell' music, video

UK sales of games will outstrip music and video for the first time in 2008, says a report from Verdict Research. A huge shift in consumer attitudes has turned video games into the UK's most popular form of entertainment, say the retail analysts. It predicts spending on games software and hardware will rise by 42% to £4.64bn in 2008, with sales on music and video at £4.46bn. In the last five years the video games market has more than doubled in value, while music sales have stagnated. The good news for game makers in the report was balanced by grim tidings for high street retailers. "The music and video market is not just suffering from a slowing of growth but a massive transfer of spend to online," says Malcolm Pinkerton of Verdict Research. It is online sales of CDs and DVDs that have grown rapidly, rather than digital downloads, which still only account for around 4% of music and video sales. In contrast, video games spending has enjoyed explosive growth, with the launch of major new titles such as Grand Theft Auto IV and FIFA 08, and the Nintendo Wii continuing to broaden the appeal of games. High street music retailers are diversifying as sales of CDs continue to fall. Pinkerton says firms such as HMV and Zavvi are changing store layouts: "They're cutting back on space in music and re-allocating it to more lucrative areas such as MP3 players, books, clothing and video games." BBC Nov 08