Got Mad Game

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Apr 2005 Video Gamers Benchmark Release

Industry’s First Benchmark Study From Nielsen Entertainment Provides Directional Findings on Emerging Markets, Spending, and Cross-Media Ownership for Interactive Entertainment First Quarter Video Gaming Industry Benchmark Report Highlights Consumer-level Data on Gaming Behavior and Purchasing

LOS ANGELES, CALIFORNIA –April 7, 2005 – How are the demographics of gamers evolving, how much do they spend each month on games and competitive entertainment media, what platforms and genres do they prefer, what motivates a purchase of new platforms such as the Nintendo DS and Sony PSP or next generation hardware such as Xbox2 and PS3, and what sources of information drive awareness are among the questions answered in an industry-first benchmark report, the first installment of this bi-annual study being released today by Nielsen Entertainment’s Interactive Group.

Among the key findings, evidence that:

• Gamers are growing beyond the traditional 8-34 year-old male target;

• Women, Hispanics and African-Americans are an underserved and emerging market for interactive entertainment;

• For males, spending on games has become the 2nd ranked purchased category behind DVDs and in front of CDs, MP3 and music purchases;

• Women and older adults are playing games in increasing numbers;

• Graphics dominate as a significant motivation for purchase of specific titles and next generation hardware;

• There is a strong connection between DVD and game consumption to be exploited in marketing and cross-promotion;

• While Caucasians report spending the most money per month on DVDs, African-Americans and Hispanics report spending more money per month on games and mobile services.

Andy Wing, CEO of Nielsen Entertainment said, “As interactive entertainment aims to take a more central place in the ecology of the living room, we will continue to monitor consumer awareness and purchase interest of next-generation consoles, and more broadly, the ways in which all consumers are responding to competing forums for their leisure time.”

The report is a first for the interactive entertainment space, a medium which has flourished among the young male demographic and has until today, been guided more by instinct and technology than empirical data. The results of this first study and the forthcoming second installment in Q3’05 will assist developers, marketers and interactive entertainment sales executives in strategy and planning decisions, in addition to providing the entertainment industry more broadly with a clear picture of video games today and their potential as a thriving entertainment medium in the not so distant future.

HIGHLIGHTS FROM VIDEO GAME INDUSTRY BENCHMARK REPORT

The Benchmark report found that nearly 40% of U.S. households own at least one of the following game systems for game play - PC, home console or handheld device. In terms of cross ownership, the study found that 23% of gamers own all three types of gaming devices – PC, console and handheld; among those who own a gaming device, 89% own a console, 65% own a PC, 36% own a handheld, Among the respondents who own Playstation 2 (PS2), Xbox or Nintendo GameCube - 8% own all three popular consoles. The report found that among those who own one of these three consoles, 57% own a PS2, 39% own an Xbox and 27% own a GameCube.

Results from the report suggest that the use of video games as an entertainment option is directly correlated to overall leisure time availability: younger gamers reporting the most leisure time and are the most likely to play games. The Benchmark report also found that 39% of gamers are female and that nearly 24% of all gamers are over the age of 40.

“While this reinforces the industry’s traditional targeting towards these groups, women between the ages of 18 to 24 show relatively high entertainment expenditure and time availability, suggesting there are opportunities for publishers to target this consumer,” said Emily Della Maggiora, Vice President of Nielsen Interactive Entertainment. “African American and Hispanic gamers appear to be a potentially lucrative (and currently under-served) consumer target for publishers as these gamers are spending more money to purchase games and more time to play them compared to total gamers, in general.”

Overall, active gamers typically spend approximately 5.2 hours playing by themselves with a large proportion also being spent playing socially (3.07 hours per week with friends and family or online). Among females, the split between solo and social game play is even more equitable with younger females 13-17 tending to play more with friends or family (54% of the time) and women 25-34 playing almost as much socially as alone. Males and females 45 and older are markedly different, spending almost all their time (79%) playing alone. Interestingly, platform-based analysis shows significant variation which is reflective of Xbox’ emphasis on online game play and multiplayer games. Those from the study that prefer playing on an Xbox spend as much time playing with friends and family/online as they do alone (5.49 hours vs. 5.36 hours, respectively).

The Benchmark report explored consumer sentiment towards future next generation devices such as ‘Xbox 2/Xenon’ and the ‘PS3’ home consoles. The report found that at this point in time consumer response to next generation consoles is lukewarm and only minimally heightened by decreasing price. Active gamers who do express some interest in purchasing one of the next generations consoles indicate that they are more likely to wait some time after release before purchasing the system. Also important to note is that among the current consoles, Xbox holds up slightly better than PS2 in retaining consumer loyalty.

NIE plans to field its next study in August with results available in September 2005.

METHODOLOGY Through a random digital dial frame (RDD) of over 1500 respondents – collected in January and February 2005 – the 80-page report delivers key information on:

• Gamer demographics

• Penetration figures for PC, console and handheld games

• Cross ownership

• Purchase behavior along with rental and usage behavior

• Purchase motivators

• Attitudes towards next generation hardware

The report also includes special analyses on mobile phone related entertainment, 2004 holiday purchase insights, and high potential consumer targets as mentioned above, particularly Female, African-American and Hispanic gamers.

About Nielsen Entertainment

Through custom research, consulting and the world's most comprehensive network of entertainment measurement systems and analysis, Nielsen Entertainment delivers Actionable Entertainment Intelligence to clients engaged in the business of selling entertainment and trading in the marketplace of our popular culture.

Nielsen Entertainment’s AEI products give clients unrivaled perspective from which to steer business decisions, providing the measure and the motivation in one package; comparing what the consumer says they do and what they actually do, in any given environment including film, television, music, books, and interactive media.

Nielsen Entertainment is comprised of the following businesses: National Research Group (NRG), EDI and EDI International, Television Services, SoundScan, Broadcast Data Systems, Aircheck, Music Control, VideoScan, Market Navigator, BookScan, BookData, and Interactive Entertainment, and utilizes the full portfolio of sister companies including Nielsen Media Research (television ratings) and Nielsen Net Ratings (internet usage) to deliver a whole media point of view. Nielsen Entertainment is part of VNU, www.vnu.com, and a global leader in information services for the media and entertainment industries.

posted by Sneaker15 @ 12:16 AM