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The worldwide console market shrank by 2.5 percent in 2016

The worldwide console market shrank by 2.5 percent in 2016, with consumer spending totaling $ 34.7 billion across hardware, content, and services. …


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PC Gaming Market Reaches $30 Billion All-Time High

While not the towering juggernaut that the console market is, the PC gaming hardware market has been showing steady growth in recent years, and in 2016 reached an all-time highest Total Available Market (TAM, which measures the total revenue made by a kind of product across all competitors) of $ 30 billion.

Jon Peddie Research (JPR), a technology market research and consulting firm, announced that the PC gaming hardware market breached the new high mark. For JPR, the PC gaming hardware market is "Comprised of pre and DIY built gaming computers, upgrades, and accessories such as input devices and audio/communication systems."

The largest area of growth for the PC gaming hardware market is the Asia-Pacific region, where, according to JPR, "an entrenched PC gaming culture, large population, and a lack of significant console traction" lead to an $ 11.3 billion TAM last year. While the Asia-Pacific experienced the most growth, North America and Europe lead the market for high-end hardware. As of 2016, entry-level hardware makes up 22 percent of sales, mid-range hardware makes up 35 percent of sales, and high-end hardware makes up 43 percent of sales, making the high-end market (where the fewer purchases lead to more money spent) the most lucrative.

JPR cites a number of factors for the increased attention to PC gaming hardware across the globe. "The desktop ergonomic is popular because the display distance offers increased detail when using HD and UHD monitors," said Ted Pollack, Senior Game Industry Analyst for JPR. "Additionally, product designers have given PC gamers thousands of options for complete customization from a functionally and aesthetic perspective." Between all the flight peripherals, PC parts, thin and performance laptops, and other accessories, the market is flooded with thousands of choices, and PC players are buying them up. "The western appetite for PC gaming systems costing thousands of dollars is strong," said JPR. Pollak also cites "superior control with mouse and keyboard control interfaces. This has been validated with eSports overwhelmingly being played on PCs."

Following the new all-time high, JPR expects PC gaming hardware to grow "at a 6 percent CAGR [Compound Annual Growth Rate] through 2019."

[Source: Jon Peddie Research via Tech Report]

Note: This article was updated to better reflect that the study focused on PC gaming hardware, not software.

 

Our Take
I don't necessarily disagree with mouse and keyboard being "superior" to controllers (Pollak's quote doesn't mention controllers or consoles by name, but I believe that's the implication), but I find it hard to imagine that them being better methods of control is a significant factor in the economical growth of the PC Gaming market. Anecdotally, most of the people I know get into PC gaming so they can run games better and then play them with controllers. But hey, I'm no expert.

www.GameInformer.com – The Feed

Sony targets eSports market with officially licensed ‘pro controllers’

Sony is targeting the eSports market with two new officially licensed pro controllers designed and manufactured by Razer and Nacon.  …


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Report: Nintendo Switch Reveal Announcement Raised Nintendo’s Market Value By $1 Billion

Yesterday evening, Nintendo teased that it would finally reveal the elusive NX console. Today, we found out that its official name is the Nintendo Switch, along with several of its features including a play-and-go functionality and that it uses cartridge-based games. The anticipation for this reveal was huge, and the announcement that a teaser was on its way made Nintendo's stock rise by more than $ 1 billion overnight.

According to Bloomberg, who spoke to analyst David Gibson from Macquarie Securities, he believes that the Nintendo Switch will cost around $ 250, along with a prediction of selling 2.5 million units in its first month and 10.6 million by March 2018. Keep in mind that these are estimates, which will likely fluctuate and change going forward.

You can watch the reveal trailer for the Nintendo Switch by heading here.

[Source: Bloomberg]
 

Our Take
According to a Bloomberg report, Nintendo's stock has increased by 50% this year, likely do to successes such as Miitomo and Pokémon Go. I'd be curious to see if these numbers continue to rise now that we following the reveal of the Nintendo Switch earlier today.

www.GameInformer.com – The Feed

MTG buys 31 percent stake in InnoGames to tap into online games market

Swedish entertainment group MTG, owner of eSports companies Dreamhack and ESL, has picked up a 35 percent stake in InnoGames as it looks to enter the online gaming market.  …


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Report: Pokemon Go may have given the mobile market a shot in the arm

According to data from Newzoo, Pokemon Go may have given the mobile games market a boost by introducing new players who haven’t played any major mobile games yet. …


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Sony says expanding console market will ‘broaden the community’

“They’re filling different kinds of needs. Is it challenging? Yeah. But the PS Pro, we developed it, we made it, it’s ready, we want to bring it out as soon as we can.” …


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Blog: Behaviorism, in-game economies and the Steam Community Market

A look into how in-game item systems can increase player motivations by providing rewards, of both internal and external value. …


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The NPD Group To Buy Video Game Market Researcher EEDAR

The NPD Group, a market sales research company that offers monthly and quarterly data, has signed an agreement to buy video game research provider EEDAR. The two hope that by collaborating their assets and expertise, they can give better data, insights, and analytics for the video game industry.

NPD began analytics on video games back in 1988, and quickly became a leader in tracking and analyzing the industry's sales. It introduced its first SKU-level sales data for digital games this past July.

NPD focuses on several different markets, while EEDAR's data has always homed in solely on the video game market. EEDAR's database of video game product metadata includes over 200 million facts and 150,000 games across consoles, PC, mobile, and social. With its analytics portal GamePulse, it offers information on industry trends, product performance, and marketing strategies.

"A fundamental goal of EEDAR has always been to improve the quality and speed by which business decisions could be made for game developers and publishers,” CEO Robert Liguori says in a press release. “NPD shares this philosophy, and the joining of our resources and passion for this sector will ensure the industry has access to the information it needs as it advances into new platforms and business models."

Closing is expected to happen in early October, with EEDAR retaining its name, but will now be considered an NPD Group Company.

 

Our Take
NPD has already been offering monthly and quarterly analytics on the industry that the media has largely respected for years, and is moving into the consulting business as well. With EEDAR and NPD's assets combined, they will hopefully offer better, more detailed data on an industry that continues to grow rapidly.

www.GameInformer.com – The Feed

Blog: Considerations for the global test market

Kongregate’s associate product manager, James An, analyzes the pros and cons of running mobile game tests on a global scale. …


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