Even the most casual observer of the games business has witnessed an explosion in gaming options. The iPhone, other smartphones, social networks, online and casual portals and more have all greatly expanded the marketplace. While in a sense this is good news, it's also come at the expense of the traditional console and PC business, Newzoo has found in its latest report.
Newzoo’s U.S. National Gamers Survey 2010 shows that the 160 million Americans playing games are not necessarily shifting entirely to new online platforms, but what they are doing is actually increasing the total number of platforms they play on. That said, this expansion of options does still take away from the traditional console and PC games sectors.
Even with the expansion, console gaming remains hugely popular, and in terms of number of players, the Sony, Nintendo and Microsoft consoles are played by 118 million Americans, which is almost 75% of all people playing games in the U.S. The key 'factoid' though is that online casual game websites and social networks are hot on the heels of consoles, coming in second and third attracting a gaming audience of 112 and 88 million, respectively. Another major statistic is that 77 million Americans now use their smartphone or an Apple iOS device (iPhone, iPad, etc.) to play games on. Rounding out the list is boxed PC/Mac games (80 million), digital downloads to PC/Mac (72 million) and MMOs with 51 million U.S. players aged 10 and up.
Peter Warman, MD Newzoo, commented: “Consumers are welcoming the new range of games and platforms on an unprecedented scale. Social, Mobile and MMO games fill the gap between playing free ad-supported games on casual portals and buying triple A titles for their console, PC or Mac. The free-to-play / micro-transaction model fits this need perfectly. Still, console games are set to remain leading in terms of revenues especially if they integrate with other successful online games and platforms."
Today's gamers are diverse and so are their playing habits. Depending on the occasion, the broadening of the industry can provide just the platform they need at any given time. Newzoo found that "56% of console gamers also play on their smartphone or iOS device, 59% on social networks and 40% also plays MMOs of which more than 50% are 'MMO spenders'. On the other hand 60% of paying free-to-play MMO players also spend money on console games."
And speaking of spending, Newzoo pointed out another important piece of data: more and more people are paying for games. "In total 71% of all gamers or 115 million Americans actually spend money on games," the report stated. "Compared to 2009 data the biggest growth is seen in the relative number of people spending money on online games or via digital distribution. In some cases these 'conversion rates' have doubled in a year time, e.g. for Free-to-play MMOs and social games. The share of paying players now ranges from 25% for social network gamers to 62% for console gamers."
