The US Video Game Industry Outlook to 2017 - Transition from Console to Online and Mobile Gaming

• Publication date: February 2013
• Report size: 134 pages

EXECUTIVE SUMMARY The report titled “The US Video Game Industry Outlook to 2017 – Transition from Console to Online and Mobile Gaming” provides a comprehensive analysis of the various aspects such as market size of the US video game industry, video game hardware market, video game software market, online games market and mobile games market. The report also covers the market shares of major hardware manufacturers in the US as ...

EXECUTIVE SUMMARY

The report titled “The US Video Game Industry Outlook to 2017 – Transition from Console to Online and Mobile Gaming” provides a comprehensive analysis of the various aspects such as market size of the US video game industry, video game hardware market, video game software market, online games market and mobile games market. The report also covers the market shares of major hardware manufacturers in the US as well as the revenues of major players in the software development space.

Video game industry in the US, which is hugely driven by retail sales of software and hardware, registered revenues of USD ~ million in CY’2012. Even so with the advent of new video game players in the industry, the revenues decreased by 11.7% compared to CY’2011 where the total revenues was USD ~ million. Each segment in the video game industry is subject to a gamut of different factors such as price cuts and number of units sold that play an important role in determining their respective revenues. The video game industry in the US has grown at a CAGR of 8.5% from USD 13,300 million in CY’2006 to USD ~ million in CY’2012.

The US video game software market is comprised of various independent software developers that specialize in designing games and are not financially supported by a major hardware manufacturing corporation. Market revenues of Activision Blizzard have increased noticeably from USD 1,494 million in CY’2008 to USD ~ million in CY’2012, making it the largest player in the independent software development space. Electronic Arts was the second largest publisher of video games in CY’2012. EA generated revenues of USD ~ million through software development and publishing.

Three main competitors in the video game hardware market in the US are Nintendo, Sony and Microsoft. Microsoft’s Xbox sold ~ million units in CY’2012 followed by PlayStation 3 selling ~ million units and Wii with 2 million units. Since CY’2010, Xbox has prevailed to be the bestselling home console, majorly due to price cuts, strong sales of Xbox Kinect.

The market for video games in the US is changing at a brisk rate. Technological advancements and gaming diffusion across ages as well as competitive pressures have been significantly changing the market. Revenues from the video game industry in the US are expected to expand to USD ~ million in CY’2017, growing with a CAGR of ~% from CY’2012 to CY’2017.

Online gaming in the US has witnessed a rapid expansion in the last couple of years. Digital console and PC gaming, MMO gaming and social gaming have remodeled the panorama of the traditional game market place with more number of consumers switching to relatively cheap avenues of video gaming. Market revenues of the online gaming segment were USD ~ million in CY’2012 growing by 8.8% from USD ~ million in CY’2011.

The US MMO gaming market was worth USD ~ million in CY’2012 in terms of revenues, registering a growth of 13.65% from USD ~ million in CY’2011. The US witnessed 50 million MMO video game players in calendar year 2012, of which ~ million spent money on free-to-play or subscription based MMO games.

KEY TOPICS COVERED IN THE REPORT

- The market size of the US video game industry, video game software, video game hardware, video game accessories, online gaming, MMO gaming, social gaming and mobile gaming market.
- Market segmentation of the video game software market on the basis of console and PC software, type of distribution, types of video game ratings and type of genre.
- Market segmentation of the video game hardware market on the basis of console and handheld hardware.
- Market segmentation of the social gaming market on the basis of revenues sources.
- Market segmentation of the mobile gaming market on the basis of revenue sources.
- Trends and Development in the US video game industry.
- Competitive landscape and detailed company profiles of the major manufacturers of video game hardware and software in the US.
- Future outlook and projections of the US video game industry – software, hardware, accessories, online gaming and mobile gaming, on the basis of revenues in the US.

Video Game Industry in the United States

TABLE OF CONTENTS

1. The US Video Game Market Introduction
1.1. The US Video game Industry Value Chain
2. The US Video Game Market Size, CY’2006-CY’2012
2.1. By Revenue, CY’2006-CY’2012
3. Profile of Gamers in the US
4. The US Video Game Market Segmentation, CY’2006-CY’2012
4.1. By Software, Hardware And Accessories
4.2. The US Video Game Software Market Introduction
4.2.1. The US Video Game Software Market Size, CY’2006-CY’2012
4.2.2. The US Video Game Software Market Segmentation
4.2.2.1. By Console and PC Software, CY’2006-CY’2012
4.2.2.2. By Type of Distribution, CY’2009-CY’2012
4.2.2.3. By Type of Video Game Ratings, CY’2012
4.2.2.4. By Console Game Software Genre, CY’2008 – CY’2012
4.2.2.5. By PC Game Software Genre, CY’2008-CY’2012
4.2.3. Revenues of Major Independent Game Software Developers and Publishers, CY’2008-CY’2012
4.2.4. The US Video Game Software Market Trends and Developments
Shift from Retail to Digital Distribution
Graphically Superior Video Games
Focus on Fewer Game Software Titles
4.2.5. The US Video Game Software Market Future Outlook and Projections
4.2.5.1. Cause and Effect Relationship of the US Video Game Software Market
4.3. The US Video Game Hardware Market Introduction
4.3.1. The US Video Game Hardware Market Size, CY’2006-CY’2012
4.3.1.1. By Revenue and Consumption, CY’2006-CY’2012
4.3.2. The US Video Game Hardware Market Segmentation
4.3.2.1. By Console and Handheld Video Game Hardware, CY’2006-CY’2012
4.3.3. Market Shares of Major Players in the Seventh Generation Home Console Market, CY’2006-CY’2012
4.3.4. The US Video Game Hardware Market Trends and Developments
Popularity of Motion Controls
Emergence of Multifunction Gaming Hardware
Advent of 3D Gaming
A Shift towards Smartphones and Tablets
The Eighth Generation Consoles
4.3.5. The US Video Game Hardware Market Future Outlook and Projections
4.3.5.1. Cause and Effect Relationship of the US Video Game Hardware Market
4.4. The US Video Game Accessories Market Introduction
4.4.1. The US Video Game Accessories Market Size, CY’2006-CY’2012
4.4.2. The US Video Game Accessories Market Future Outlook and Projections, CY’2013-CY’2017
5. The US Online Gaming Market Introduction
5.1. The US Online Gaming Market Size, CY’2010-CY’2012
5.2. The US Online Gaming Market Future Outlook And Projections, CY’2013-CY’2017
6. The US Massively Multiplayer Online Gaming Market Introduction
6.1. The US Massively Multiplayer Online Gaming Market Size, CY’2009-CY’2012
6.2. The US Massively Multiplayer Online Gaming Trends And Developments
6.3. The US Massively Multiplayer Onine Gaming Market Future outlook and Projections, CY’2013-CY’2017
7. The US Social Gaming Market Introduction
7.1. The US Social Gaming Market Size, CY’2010-CY’2012
7.2. The US Social Gaming Market Segmentation, CY’2010-CY’2012
7.3. The US Social Gaming Market Future Outlook and Projections, CY’2013-cy’2017
8. The US Mobile Gaming Market Introduction
8.1. The US Mobile Gaming Market Size, CY’2010-CY’2012
8.2. The US Mobile Gaming Market Segmentation, CY’2010-CY’2012
8.3. The US Mobile Gaming Future Outlook and Projections
9. The US Video Game Industry Trends and Developments
A Surge in the Casual Gaming Audience
Popularity of Social Games
Digital Distribution Gaining Momentum
Cloud Gaming, the Next Wave of Growth
Advergaming Becoming an Integral Part of Brand Media
Data Center Services Playing an Important Role
Entry of New Age Eighth Generation Consoles
10. The US Video Game Industry Future Outlook and Projections
Shift from Packaged to Digital
11.12. Square Enix
11.12.1. Business Overview
11.12.2. Financial Performance
11.12.3. Business Strategies
Globalization
Focus on becoming Network Centric
12. Macroeconomic Factors
12.1. Video Game Playing Population in the US, CY’2006-CY’2017
12.2. Time Spent on Gaming, CY’2006-CY’2017
12.3. Wired Broadband Subscribers in the US, CY’2006-CY’2017
12.4. The US Personal Disposable Income, CY’2006-CY’2017
12.5. Number of New Games Released in the US, CY’2006-CY’2017
13. Appendix
13.1. Market Definitions
13.2. Abbreviations
13.3. Research Methodology
Data Collection Methods
Approach
Variables (Dependent and Independent)
Final Conclusion
13.4. Disclaimer11. Company Profiles
11.1. Activision Blizzard
11.1.1. Business Overview
11.1.2. Financial Performance
11.1.3. Business Strategies
Focus on Big Franchises and Niche Audience
Digital revenues
Focus on Customer Service and Intellectual Property
11.2. Electronic Arts
11.2.1. Business Overview
11.2.2. Financial Performance
11.2.3. Business Strategies
Focus on Brand Building
Focus on Fewer Titles
Focus on Sequels
11.3. Microsoft
11.3.1. Business Overview
11.3.2. Financial Performance
11.3.3. Business Strategies
Focus on Technological Advancements
Alliance Strategy
Shift to Cross Platform Gaming
11.4. Sony
11.4.1. Business Overview
11.4.2. Financial Performance
11.4.3. Business Strategies
Focus on Digital Content and Other Platforms
Focus on Cloud
Sponsorship Strategy
11.5. Nintendo
11.5.1. Business Overview
11.5.2. Financial Performance
11.5.3. Business Strategies
Focus on Online and Mobile Gaming
Focus on Non Gamers
Research and Development Strategy
11.6. Ubisoft
11.6.1. Business Overview
11.6.2. Financial Performance
11.6.3. Business Strategies
Focus on Online, Free-to-play and Mobile Games
Focus on Research and Development
Focus on Core and Casual Gamers and Smaller Number of Titles
11.7. Konami
11.7.1. Business Overview
11.7.2. Financial Performance
11.7.3. Business Strategies
Focus on Online and Digital Gaming
Focus on Mobile Gaming
Focus on Hit AAA Game Titles
11.8. Take Two Interactive
11.8.1. Business Overview
11.8.2. Financial Performance
11.8.3. Business Strategies
Focus on Digital and Mobile Platform
Investing in Creative Teams
Expansion Strategy
11.9. THQ
11.9.1. Business Overview
11.9.2. Financial Performance
11.9.3. Business Strategies
Focus on Core Games
Focus on Trans Media
11.10. Capcom
11.10.1. Business Overview
11.10.2. Financial Performance
11.10.3. Business Strategies
Focus on Social Games on DLC
Focus on Singular Content and Multiple Usage
11.11. Sega Sammy
11.11.1. Business Overview
11.11.2. Financial Performance
11.11.3. Business Strategies
Focus on Hit Game Titles
Shift from Packaged to Digital
11.12. Square Enix
11.12.1. Business Overview
11.12.2. Financial Performance
11.12.3. Business Strategies
Globalization
Focus on becoming Network Centric
12. Macroeconomic Factors
12.1. Video Game Playing Population in the US, CY’2006-CY’2017
12.2. Time Spent on Gaming, CY’2006-CY’2017
12.3. Wired Broadband Subscribers in the US, CY’2006-CY’2017
12.4. The US Personal Disposable Income, CY’2006-CY’2017
12.5. Number of New Games Released in the US, CY’2006-CY’2017
13. Appendix
13.1. Market Definitions
13.2. Abbreviations
13.3. Research Methodology
Data Collection Methods
Approach
Variables (Dependent and Independent)
Final Conclusion
13.4. Disclaimer



LIST OF FIGURES

Figure 1: Value Chain of the US Video Game Industry
Figure 2: The US Video Game Industry Market Size on the Basis of Revenue in USD Million, CY’2006-CY’2012
Figure 3: Distribution of Video Game Players in the US on the basis of Age in Percentage, CY’2012
Figure 4: Distribution of Video Game Players in the US on the basis of Gender in Percentage, CY’2012
Figure 5: The US Video Game Market Segmentation by Software, Hardware and Accessories on the Basis of Revenue in Percentage, CY’2006-CY’2012
Figure 6: The US Video Game Software Market Size on the Basis of Revenue in USD Million and Number of Units Sold through Retail in Million, CY’2006-CY’2012
Figure 7: The US Video Game Market Segmentation by Retail Unit Sales of Console and PC Software in Percentage, CY’2006-CY’2012
Figure 8: The US Video Game Software Market Segmentation by Type of Distribution in Percentage, CY’2009-CY’2012
Figure 9: The US Video Game Software Market Segmentation on the Basis of Ratings in Percentage, CY’2006-CY’2012
Figure 10: The US Video Game Console Software Segmentation by Unit Sales in Genre, CY’2008-CY’2012
Figure 11: The US Video Game PC Software Segmentation by Unit Sales in Genre, CY’2008-CY’2012
Figure 12: The US Video Game Software Market Future Projections on the Basis of Revenue in USD Million, CY’2013-CY’2017
Figure 13: The US Video Game Hardware Market Size on the Basis of Revenue in USD Million and Consumption of Units in Million, CY’2006-CY’2012
Figure 14: The US Video Game Hardware Market Segmentation on the Basis of Number of Units Sold in Percentage, CY’2006-CY’2012
Figure 15: Revenues of Major Players in the Seventh Generation Home Console Market on the Basis of Revenues in Percentage, CY’2006-CY’2012
Figure 16: Estimated Market Shares of Eighth Generation Consoles on the Basis of Retail Sales in the US, CY’2014
Figure 17: The US Video Game Hardware Market Future Projections on the Basis of Revenue in USD Million, CY’2013-CY’2017
Figure 18: The US Video Game Accessories Market Size on the Basis of Revenue in USD Million, CY’2006-CY’2012
Figure 19: The US Video Game Accessories Market Future Projections on the Basis of Revenue in USD Million, CY’2013-CY’2017
Figure 20: The US Online Gaming Market Size on the Basis of Revenues in USD Million, CY’2010-CY’2012
Figure 21: The US Online Gaming Market Future Projections on the Basis of Revenue in USD Million, CY’2013-CY’2017
Figure 22: US Massively Multiplayer Online Gaming Market Size on the Basis of Revenue in USD Million, CY’2009-CY’2012
Figure 23: The US Massively Multiplayer Online Gaming Market Future Projections on the Basis of Revenues in USD Million, CY’2013-CY’2017
Figure 24: The US Social Gaming Market Size on the Basis of Revenue in USD Million, CY’2010-CY’2012
Figure 25: The US Social Gaming Market Segmentation on the Basis of Revenue in USD Million in Percentage, CY’2010-CY’2012
Figure 26: The US Social Gaming Market Future Projections on the Basis of Revenues in USD Million, CY’2013-CY’2017
Figure 27: The US Mobile Gaming Market Size on the Basis of Revenue in USD Million, CY’2010-CY’2012
Figure 28: Installed Base of iOS and Android Smartphones in the US in Million Units, CY’2011-CY’2012
Figure 29: The US Mobile Gaming Market Segmentation on the Basis of Revenue in USD Million in Percentage, CY’2010-CY’2012
Figure 30: Market Shares of iOS and Android in the US on the Basis of Revenue Generated from top 200 Grossing Games, CY’2012
Figure 31: Mobile Devices Used to Play Games in the US, CY’2012
Figure 32: The US Mobile Gaming Future Projections on the basis of Revenue in USD Million, CY’2013-CY’2017
Figure 33: Market Shares of Major Portable Gaming Software across Different Platforms on the Basis of Revenue in Percentage, CY’2009-CY’2011
Figure 34: The US Video Game Industry Future Projections on the Basis of Revenue in USD Million, CY’2013-CY’2017
Figure 35: Activision Blizzard’s Revenues from Video Game Software Development and Publishing in the US in USD Million, CY’2008-CY’2012
Figure 37: Electronic Arts Revenues from Video Game Software Development and Publishing in USD Million, CY’2008-CY’2012
Figure 38: Retail Sales of Xbox Consoles in the US in Million Units, CY’2006-CY’2012
Figure 39: Retail Sales of PlayStation 3 Consoles and Software in the US in Million Units, CY’2006-CY’2012
Figure 40: Retail Sales of Nintendo’s Wii and DS in the US in Million Units, CY’2006-CY’2012
Figure 41: Ubisoft’s Revenues from Video Game Software Development and Publishing in USD Million, CY’2008-CY’2012
Figure 42: Konami’s Revenues from Video Game Software Development and Publishing in USD Million, CY’2008-CY’2012
Figure 43: Take Two Interactive’s Revenues from Video Game Development and Publishing in USD Million, CY’2008-CY’2012
Figure 44: THQ’s Revenues from Video Game Development and Publishing in USD Million, CY’2008-CY’2012
Figure 45: Capcom’s Revenues from Video Game Development and Publishing in USD Million, CY’2008-CY’2012
Figure 46: Sega Sammy’s Revenues from Video Game Development and Publishing in USD Million, CY’2008-CY’2012
Figure 47: Revenues from Video Game Development and Publishing in USD Million, CY’2008-CY’2012
Figure 48: Video Game Playing Population in the US in Million, CY’2006-CY’2017
Figure 49: Time Spent on Gaming in the US in Hours per Year, CY’2006-CY’2017
Figure 50: Wired Broadband Subscribers in the US in Million, CY’2006-CY’2017
Figure 51: Personal Disposable Incomes in the US in USD Million, CY’2006-CY’2017
Figure 52: Number of New Games Released Across all Platforms in the US in Units, CY’2006-CY’2017LIST OF TABLES

Table 1: Profile of the Video Games Playing Population in the US
Table 2: Best Selling Video Game Software in the US in Units, CY’2008-CY’2012
Table 3: Revenues of Major Independent Game Software Developers and Publishers in USD Million, CY’2008-CY’2012
Table 4: Upcoming Major Game Software Releases, CY’2013
Table 5: Cause and Effect Relationship Analysis between Industry Factors and Expected Video Game Software Market Prospects
Table 6: Competitive Landscape of the Seventh Generation Home Console Market on the Basis of Number of Units Sold Through US Retail, CY’2006-CY’2012
Table 7: Cause and Effect Relationship Analysis between Industry Factors and Expected Video Game Hardware Market Prospects
Table 8: Top Social Game Application Developers in the US on the Basis of Average Monthly Users, CY’2012
Table 9: The US Social Gaming Market Segmentation on the Basis of Revenue in USD Million, CY’2010-CY’2012
Table 10: Most Downloaded Free Mobile Games, as on 20th January, CY’2013
Table 11: Market Shares of Various Mobile Platforms in the US on the basis of Smartphone Sales, CY’2011-CY’2012
Table 12: Eighth Generation of Video Game Consoles with Release Dates
Table 13: List of Popular Video Games Published by Activision Blizzard
Table 14: List of Popular Video Games Published by Electronic Arts
Table 15: List of Popular Games Published by Microsoft
Table 16: List of Sony Computer Entertainment Studios and Games Developed in the US
Table 17: List of Popular Games Published by Sony
Table 18: List of Popular Video Game Consoles Released by Nintendo in the Home and Handheld Category
Table 19: List of Popular Games Published by Nintendo
Table 20: List of Popular Video Games Published by Ubisoft
Table 21: List of Popular Games Published by Konami Corporation
Table 22: List of Popular Video Games Published by Take-Two Interactive
Table 23: Correlation Matrix of the US Video Games Industry
Table 24: Regression Coefficients Output

Companies mentioned
Activision Blizzard, Electronic Arts, Microsoft, Sony, Nintendo, Ubisoft, Konami, Take Two Interactive, THQ, Capcom, Sega Sammy, Square Enix