New IDATE report explores the World Video Game
Market
Eight key trends to watch in 2014
Montpellier, 5 December 2013 – IDATE delivers its future forecasts in the latest edition of its World Video Game Market report. Our specialists forecast an average 11% annual growth over the next four years, driving the global gaming market from €54 billion in 2013 to €82 billion in 2017.
IDATE predicts that the global video game market will continue to enjoy steady growth, for two reasons in particular:
· start of the life cycles of the latest generations of handheld and home consoles,
· remarkable growth of the games on mobile devices and online games segments.
Laurent Michaud, Head of IDATE’s Video Game Business and the report’s Project Manager, says, “growth will be significant up to 2015, after which it will begin to slow as new generation handheld and home consoles reach the end of their life cycle”.
World video game market by segment, 2013-2017 (million EUR)
Source: IDATE, November 2013
Online and mobile platforms giving traditional gaming sectors a run for their money
This steady growth must not, however, obscure our view of the radical changes taking place in this market.
Traditional segments losing their influence…
· Home consoles will represent 40% of the total market in 2017 against 31% in 2013, an increase that can be explained by the deployment of new consoles. A segment nonetheless well below that of 2008, during the deployment phase of the previous generation (78%).
· Handheld consoles will experience a dramatic reduction in presence – generating only 13% of the global market in 2017 in contrast to 22% in 2013. They face increasingly strong competition from games on mobile terminals.
· Irreversible decline of offline gaming on personal computers.
…Due to the success of online computer games and handheld gaming
· An average annual growth of 11.4% for online gaming and 12.2% for mobile gaming for the period of 2013-2017 against 11.1% for the entire video games market.
· Online gaming on PC becomes the segment leader on the games software market from 2013.
· Handheld gaming uptake is due to the success of tablets, which enrich the playing experience thanks to their having a larger touch screen than that of smartphones.
Eight key trends for 2014
IDATE analyses the latest developments in video games and has identified eight key trends that will shape the market in 2014:
1. The arrival of new home consoles fuels dynamic growth over the period 2013-2017
2. Moderate financial performances for traditional players compared to players in mobile and online gaming
3. Reduction of blockbusters, as they are more and more expensive to produce
4. Nearly two thirds of the income of the video games market comes from the dematerialisation of distribution and online payment practices
5. Transition to Free2Play (F2P)
6. Ubiquity takes hold for good
7. Video gaming and connected TV as a natural convergence
8. The tablet explosion
| Our Video Game & Digital Entertainment programme offers a unique watch service that tracks all video market segments, and provides users with data and analysis that draw on our own database, and on our series of reports and insights on the key issues shaping the video game industry: · The World Video Games market: · Cloud gaming · Social gaming · Mobile gaming · Next Gen Home consoles |
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About IDATE and the DigiWorld Institute
Founded in 1977, IDATE has gained a reputation as a leader in tracking telecom, internet and media markets, thanks to the skills of our teams of specialized analysts. Now, with the support of close to 40 member companies – which include many of the digital economy’s most influential players – the newly rebranded DigiWorld Institute has entered into a new stage of its development, structured around three main areas of activity:
· IDATE Research – An independent observatory whose task is to keep a close and continual watch on digital world industries, collect relevant data and provide benchmark analyses on market developments and innovations in the telecom, internet and media sectors – through its comprehensive collection of market reports and market watch services.
· IDATE Consulting, time-tested analysis and consultancy solutions. Our teams of economists and engineers have established their credibility and independence through the hundreds of research and consulting assignments they perform every year, on behalf of top industry players and public authorities.
· DigiWorld Institute – A European forum open on the world. The Digiworld Institute will take existing IDATE initiatives, such as DigiWorld Summit, and the monthly clubs in Paris, London and Brussels, to the next level. Members have the opportunity to participate in think tanks on the core issues that will shape the industry’s future, drawing on the knowledge of outside experts and the Institute’s own teams.
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