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U.S. and European Markets for Video Games and PC Entertainment Software
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Jan 7, 1996
210 Pages - Pub ID: LA329074
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- Executive Summary
The Products
- Scope of Report
- The Basic Hardware Platforms
- Video Game Software
- PC Entertainment Software
The Market
- Total Retail Market Estimated at $6.6 Billion in 1995
- Table 1-1: U.S. Retail Sales of Video Games and PC Entertainment
Software, 1991-2000 (dollars): Hardware and Software
- Leading Retail Outlets
- Market Trends
- Projected Market Growth
The Marketers
- Video Game Category Expands to Include Sony,
- Sega Moves to Top Spot
- Figure 1-1: Estimated Share of U.S. Video Game Market by Company,
1995 (percent): Sega, Nintendo, Sony, 3DO, Atari, Other,
Third-Party Software
- Hardware Manufacturers Cut Prices
- Major Third-Party Video Game Software Vendors
- Less Restrictive Licensing Agreements
- Many Entrants in PC-Based Entertainment Category
Distribution and Retail
- Distribution a Critical Issue
- Few Major Distributors in Video Game Market
- Large Companies Dominate PC Software Distribution
- Retail Outlets
- Alternative Technologies
The Consumer
- Adult Ownership and Use of Video Games and
- PC Entertainment Software
- The Gender Gap: Males Rule Video Game Market
- Data Suggest More Female Usage
- PC Entertainment Software Purchaser/User Is Older
The European Market
- Product Categories and Segments
- Product Trends
- Retail Sales Total $2.4 Billion in 1995
- Table 1-2: Estimated European Retail Sales of Video Games
and PC Entertainment Software by Category, 1992-1995 (dollars)
- Share of Sales by Country
- Figure 1-2: The European Video Games and PC Entertainment Software
Market: Share of Sales by Country, 1995 (percent): Germany, U.K.,
France, Italy, Rest of Europe
- Sales to Peak at $5.7 Billion in 1999
- Video Game Hardware Marketers
- Video Game Software Marketers
- Promotional Activity
- Distributors Handle Bulk of Sales
- Computer Stores Dominate
- Consumer Purchasing Trends
Scope and Methodology
- U.S. Market Scope
- European Market Scope
- Methodology for U.S. Market Data
- Methodology for European Market Data
The U.S. Market
The Products
The Products
- Scope of Report
- The Basic Hardware Platforms
- Hand-Held Devices and Virtual World Headsets
- A Host of Peripheral Components
- Console-Based Systems Diversify to CD-ROM
- Game Console Upgrades
- Video Game Software
- PC Entertainment Software
Game and Entertainment Software
- Products Exploit a Variety of Format Paradigms
- Physical Combat Motifs
- Out-of-This-World Motifs
- Simulations
- Movie Adaptations and Famous Names
- Problem-Solving Games and Mysteries
- Sports Themes
CD-ROM Standards
- Steady Improvement in CD-ROM Performance
- New Capabilities Present New Marketing Issues
- CD-ROM Platforms
- MPC 1 and 2 and Other Multimedia Standards
- Similar Qualities Required in the MAC
- CD-ROM XA: Synching Audio and Video
- Single-Session vs. Multisession
- Compression Technology: The Key to Full-Motion CD-ROM
- CD-ROM Increases Software Development Costs
- CD-ROM Manufacturing Costs Are Declining
Technology Trends in Hardware and Software
- Computers vs. Game Consoles: Weighing the Economics
- Cartridge-Based Systems Add Firepower
- CD-ROMs Become Component of Console Systems
- CD-ROM Software for Computers
- Potential for a New Optical Disk Standard
- New Standard Marks New Level of Influence for Computer
- Companies and Movie Studios
- Competition Between PCs and Video Game Consoles
Online Entertainment Systems
- A Potential Major Extension of the Game and Entertainment Market
- Sega Channel Pioneers Video Games on Cable TV
- Nintendo and GTE Sign Pact
- ImagiNation Network Now Online for PCs
- Cable/Telephone Participation Encourages Further Development
- Remotely Accessed Games Will Gain Ground—But Slowly
The Market
- Figure 3-1: Estimated U.S. Retail Sales of Video Game Hardware and
Software, 1990-1995 (dollars)
- Figure 3-2: Estimated U.S. Retail Sales of PC Entertainment
Software, 1990-1995 (dollars)
Market Size and Growth
- Total Retail Market Estimated at $6.6 Billion in 1995
- Retail Sales of Video Game Consoles Reach $1.4 Billion
- Video Game Software Sales Post Major Decline in 1995
- Table 3-1: Estimated U.S. Retail Sales of Video Games and
PC Entertainment Software, 1995 (dollars)
- Trends in Video Game Market Show Hardware-Software "Offsets"
- Table 3-2: Estimated U.S. Retail Sales of Video Game Hardware
and Software, 1990-1995 (dollars)
- 32-Bit Consoles Taking Over the Market
- World Awaits 64-Bit Blazers
- PC Entertainment Software Totals $1.1 Billion in 1995
- CD-ROM Leads the Way in PC Software
- Table 3-3: Estimated U.S. Retail Sales of PC Entertainment Software,
1990-1995 (dollars): CD-ROM Software, Magnetic Software
- Magnetic Software Charts Decline in 1994 and 1995
- Video Games and PC-Based Software Show
- Much Different Growth Patterns
- Table 3-4: Estimated U.S. Retail Sales of Video Game Hardware
and Software and PC Entertainment Software, 1990-1995 (dollars)
- PC Entertainment Software Emerges As Competitor for Video Games
- Major Share Gains by PC-Based Software in 1994 and 1995
- Figure 3-3: Estimated U.S. Retail Sales of Video Game Consoles,
1991-1995 (dollars)
- Figure 3-4: Estimated U.S. Retail Sales of Video Game Software,
1991-1995 (dollars)
Market Composition: By Product Type
- Major Declines in 8- and 16-Bit Consoles
- Table 3-5: Estimated U.S. Unit Sales of Video Game Consoles:
By Type of Console, 1991-1995 (number): 8-Bit, 16-Bit, 32-Bit,
64-Bit, Other
- Table 3-6: Estimated U.S. Retail Dollar Sales of Video Game Consoles:
By Type of Console, 1991-1995 (dollars): 8-Bit, 16-Bit, 32-Bit,
64-Bit, Other
- Dollar Volume Benefits from Higher-Priced Systems
- Share of Video Game Hardware Market by Platform
- Table 3-7: Market Share of U.S. Video Game Consoles by Type
of Product, 1991 vs. 1995 (percent): 8-Bit, 16-Bit, 32-Bit,
64-Bit, Other
- Hand-Held Devices Maintain Strong Market Position
- Video Game Software Sales Maintain Market Momentum
- Table 3-8: Estimated U.S. Unit Sales of Video Game Software:
By Type of Console, 1991-1995 (units): 8-Bit, 16-Bit, 32-Bit,
64-Bit, Other
- Table 3-9: Estimated U.S. Retail Dollar Sales of Video Game Software:
By Type of Console, 1991-1995 (dollars): 8-Bit, 16-Bit, 32-Bit,
64-Bit, Other
- Market Share Trend Underscores Lag in Programming
- Table 3-10: Market Share of U.S. Video Game Software by Type,
1991 vs. 1995 (percent): 8-Bit, 16-Bit, 32-Bit, 64-Bit, Other
Video Game Software: Cartridge vs. CD-ROM
- Magnetic-Based Games for PCs on the Way Out
- Table 3-11: Market Share of Retail Dollar Sales of PC Entertainment
Software : CD-ROM vs. Magnetic, 1991-1995 (percent)
- Figure 3-5: Market Share of U.S. Retail Dollar Sales of PC
Entertainment Software : CD-ROM vs. Magnetic, 1995 (percent)
- Video Game Software vs. PC-Based Software
Market Composition: By Retail Outlet
- Software Specialty Stores and Toy Stores Are Leading Retailers
- of Video Games
- Figure 3-6: Estimated U.S. Market Share of Video Game Sales by
Retail Outlet, 1995 (percent): Software Specialty Stores, Toy
Stores, Computer Stores, Mass Merchandisers, Mail Order/Direct
- PC Software Sold Mainly in Software and Computer Stores
- Figure 3-7: Estimated U.S. Market Share of PC Entertainment Software
Sales by Retail Outlet, 1995 (percent): Software Specialty Stores,
Computer Stores, Mass Merchandisers, Mail Order/Direct
Factors Affecting Market Growth
- Interactive Entertainment Comes of Age
- Changes in Technology and Content Bode Well for Future Sales
- "Success Factors" Migrate from Arcade to Home
- Competitive Appeal Is Major Draw
- Game Console Penetration May Plateau, But Improvements Stimulate
- Product Turnover
- PC Household Penetration Will Increase
- CD-ROM Penetration Increases
- CD-ROM Software Bundled with PC Purchase
- Continued Improvements in Hardware
- Improvements in Software Will Also Boost Sales
- PCs vs. Dedicated Game Consoles
- Heavy Advertising and Promotional Activities to Continue
- Marketers Appeal to New Segments of Users
- PC Entertainment Software May Be Trail-Blazer
- Among Girls and Women
- New Software Key to Tapping Female Market
- But Profit Requirements Dictate Greater Emphasis on
- Male-Oriented Products
- Software Content Also Drives the Market
- Movie Studios and Book Publishers Offer Content Material—
- and Capital for Expansion
- Violent Themes Bring Threat of Control, But Industry
- Self-Regulation Could Be a Plus
- Figure 3-8: Projected U.S. Retail Sales of Video Games and PC Entertainment Software, 1996-2000 (dollars)
Market Projections
- Market to Reach $13.0 Billion at Retail by 2000
- Table 3-12: Projected U.S. Retail Sales of Video Games and
PC Entertainment Software by Category, 1996-2000 (dollars)
- Video Games Shed Legacy of Boom-Bust Cycles
- PC Entertainment Software to Continue Rapid Growth as
- Home Computer Sales Increase
- 32- and 64-Bit Video Game Platforms Will Dominate Market
- Table 3-13: Projected U.S. Retail Sales of Video Game Consoles:
By Type, 1996-2000 (dollars): 8-Bit, 16-Bit, 32-Bit,
64-Bit, Other
- Virtual Reality Technology Unpredictable
- Video Game Software Sales Follow Hardware Pattern,
- with the Usual Lag
- Table 3-14: Projected U.S. Retail Sales of Video Game Software:
By Type, 1996-2000 (dollars): 8-Bit, 16-Bit, 32-Bit,
64-Bit, Non-Consoles
- CD-ROM for PCs to Maintain High Growth Rate; Magnetic-Based
- Software Will Decline
- Table 3-15: Projected U.S. Retail Sales of PC Entertainment Software
by Type: CD-ROM vs. Magnetic, 1996-2000 (dollars)
The Marketers
Overview
- A Multitiered Industry
- Crossover Market Entries in PC-Based Entertainment
- CD-ROM Technology Makes the PC a Serious Alternative
- Differences in Video Game and PC-Based Game Industries
- Perceptions about Interactivity and Technology Requirements
- Have an Impact
- CD-ROM Changes the Game Environment
- Competition Between Platforms: Video vs. PC
- PC Likely to Have Edge in Remote Gaming
- Sega Channel Looks to Cable Distribution of Games
- Sega Moves onto Internet with Multiplayer Software
- PC/Video Game Platform War Decided by Fusion Technology?
- Shift of Profitability Away from Hardware to Software
The Marketers
- Only Three Major Video Game Hardware Marketers May Survive
- Marketers Adopt Varying Strategies for Christmas Season
- Software for Older-Vintage 16-Bit Units Pumps
- Up Nintendo's 1995 Holiday Sales
- Sega Moves to Top Spot in Battle with Nintendo
- Table 4-1: Estimated Share of U.S. Video Game Market by Company,
1991 vs. 1995 (percent): Sega, Nintendo, Sony, 3DO, Atari,
Other, Third-Party Software
- Nintendo's Share Also Undermined by New Entrants
- Sega and Nintendo Show Depth in Game Devices
- Table 4-2: Products and Strategies of Major Video
Game Manufacturers
- 1995 Confrontation Among Three Major Players
- Nintendo's Surprises
- Nintendo's Virtual Boy a Disappointment
- Nintendo's Reasons for Waiting to Introduce Nintendo 64
- Nintendo 64 Introduced in Japan First
- Nintendo Continues to Aim at Core Youth Market
- Sony Wins the Christmas Hardware Sweepstakes
- But Nintendo Wins Software Sweepstakes
- Market Share in Video Game Hardware
- Table 4-3: Estimated Share of U.S. Market for Video Game
Hardware by Company, 1995 (percent)
- Nintendo Leads in Software
- Table 4-4: Estimated Share of U.S. Market for Video Game Software
by Company, 1995 (percent)
- Hardware Manufacturers Cut Prices, Hope to
- Recoup Profits on Software
- Software Can Also Raise Platform Values
- Major Third-Party Video Game Software Vendors
- Acclaim Is Leading Vendor of Third-Party Software
- Table 4-5: Estimated U.S. Market Share of Third-Party Video
Game Software Publishers/Developers by Company, 1995 (percent)
- Operational Diversity Among Third-Party Developers
- Licenses Produce Revenues for Major Hardware Companies
- Less Restrictive Licensing Agreements
- Third-Party Software Developers Produce Across
- Platforms to Spread Risk
- Many Entrants in PC-Based Entertainment Category
- Divisions of Major Companies Compete in PC Entertainment
- Software Market
- Table 4-6: Third-Party Software Companies and
Representative Products
- Table 4-7: Representative Companies and Products in the
PC Entertainment Software Market
Competitive Focus: Video Game Hardware
- High Technology Essential in Maintaining Competitive Edge
- Advertising Outlays Help Drive Market
- Sony Makes Big Splash with PlayStation
- Access to Distribution Channels Is Critical
- Atari and 3DO Fade from Serious Contention
Competitive Profile: Sega Enterprises, Ltd./Sega of America, Inc.
- Sega Catches, Surpasses Nintendo in U.S.
- Sega Saturn Falls Behind PlayStation in U.S.
- Sega Has Come a Long Way Since 1991
- Sega's Historical Surprise: Founded by an American
- Sega Produces Succession of Popular Hardware Devices
- Sega's Journey Toward a Next-Generation Product
- Next-Generation Market Is More Complex
- Sega Looks to Electronic Game Distribution
- Sega to Distribute Third-Party Software
- Sega Soft Established to Develop Multiplayer Software
Competitive Profile: Nintendo Co./Nintendo of America
- Nintendo Strong Financially But Weakening in U.S. Market
- Japan Is Key to Nintendo's Strong Financial Position
- The 64-Bit Future
- Nintendo's Hardware Strategy Has Precedent
- Nintendo 64 Unlikely to Dominate
- Nintendo 64 to Incorporate Enhanced Memory as an Option
- Nintendo's Enviable Software Track Record
- Nintendo 64 Software Titles
- Table 4-8: Software Support for Nintendo 64
Competitive Profile: Sony Computer Entertainment
- Sony Comes Up with a Winner
- PlayStation: 800,000 Units Sold; 5-1 Software Ratio
- Keys to Sony's Success
- Graphics-Rendering, Software Quality Appear Excellent
- Sony Foresees Major Changes in Consumer Electronics Products
- Future Looks Bright for Sony PlayStation
- Table 4-9: Representative Software Titles for the Sony PlayStation
Competitive Focus: Video Game Software
- Publishers and Developers Are Interdependent
- Which Platform to Produce For: A Major Risk
- Five Companies Profiled
Competitive Profile: Acclaim Entertainment, Inc.
- Acclaim Shows Sharp Gains in Revenue Since 1991
- First-Quarter 1996 Shows Drop in Revenues, Profit
- Acclaim Slow to Bring on CD-ROM-Based Software
- Acclaim Lags Behind EA in Platform Transition
- Table 4-10: Share of Acclaim Revenues by Product
Type (percent), 1992-1995
- Acclaim Is First U.S. Company to Publish for Nintendo
- Revenues Derived from Products for Nintendo and Sega
- Table 4-11: Share of Acclaim Revenues by
Hardware Manufacturer (percent)
- Acclaim Has Significant Distribution Clout
- Acclaim Loses Publishing Rights to MK3
- Acclaim Highly Dependent on Hit Titles
- Table 4-12: Acclaim's Hit Titles by Year
Acclaim Signs Capcom and Moves Toward CD-ROM
- Acclaim Sets Up Motion-Capture Studio
- Acquisitions Build In-House Development Potential,
- May Help Compensate for Mortal Kombat 3 Loss
- Lazer-Tron Added to Corporate Family
- Comic Book Publishing
- Joint Venture in Electronic Distribution
- Acclaim Looks to Multi-Platform Releases
- Table 4-13: Software Titles Released by Acclaim in 1995 and 1996
Competitive Profile: Electronic Arts
- Excellent Long-Term Financial Performance
- Product Development Balance Across All Platforms
- Balance Between Product Development and Distribution
- EA Extends Basic Strategy to International Markets
- Product Portfolio Shifts from 16-Bit to Newer Platforms
- Table 4-14: Electronic Arts Revenues by Product Type,
1995 vs. 1994 (dollars and percent)
- Sales Breakout by Cartridge Brand
- Table 4-15: 16-Bit Software Sales by Brand, 1995 vs. 1994
(dollars and percent)
- Electronic Arts' Recent Software Titles
- Table 4-16: Representative Software Titles by Electronic Arts
Competitive Focus: WMS Industries/Williams Entertainment, Inc.
- A Diversified Electronic Entertainment Company
- 1996 Revenues Could Rise Sharply After Several Slow-Growth Years
- Arcade Hits Become Home Video Game Bestsellers
- Mortal Combat 3 Likely to Surpass Previous MK Sales
- WMS Acquires Tradewest and Sets Up Home Video Game Division
- Table 4-17: Current Williams Entertainment Software Titles
Competitive Profile: GT Interactive Software, Inc.
- GTIS Goes Public, Becomes Major Factor Fast
- Affiliation with Wal-Mart Puts GTIS in Thick of Competition
- id Products Critical to Sales Expansion
- Strategy Emphasizes PC and Next-Generation Consoles
- GTIS Develops Two Types of Products
- GTIS Acquires Slash to Strengthen Value-Priced Business
- Focus on Mass Merchandisers
- Little In-House Development Capability at Present
- GTIS Titles Cover PCs, MACs, Next-Generation Consoles
- Table 4-18: Representative GTIS Software Titles
Competitive Profile: id Software
- DOOM Is Not Gloom at id
- Revenues Estimated at $50-$70 Million
- id's Product Development Strategy
- Unique Distribution Builds a Cult Following
- Emphasis on Multiplayer Games
- GTIS Handles Most id Products
- id Titles
- Table 4-19: Software Titles Available from id
Competitive Focus: PC Entertainment Software
- An Ever-Broader Range of Product
- Advantages of Computer-Driven Media
- Growing Acceptance by Video Game Publishers
Competitive Profile: Mindscape (Pearson Plc)
- Mindscape Becomes Part of Pearson Plc
- History of Financial Ups and Downs
- Product Line Is Diversified
- Acquisition of Content Providers
- Three Business Areas: Home Education, Entertainment, School
- Broad-Based Distribution for Entertainment Products
- Strong Distribution Effort to PC Manufacturers
- 1996 Products Emphasize Windows 95 and PlayStation
- Table 4-20: Mindscape Title Releases Planned for 1996
Competitive Profile: Microsoft, Inc.
- Microsoft Moves into Home Entertainment Market
- Microsoft Entertainment Sales Estimated at $45 Million
- Supporting and Strengthening the Market for Windows 95
- "Bundling" Software Makes Sense to Microsoft
- External Software Development a Key Strategic Feature
- Distribution Clout Attracts Third-Party Developers
- Product Strategy Calls for Quality Titles
- A Diversity of Entertainment Software
- Game-Player Crowd Not Neglected
- Technical Advantages: Windows 95 Plug & Play
- Other Technical Advantages: Software Development Tools
- Will Microsoft's Product Strategy Work?
- Microsoft Entertainment Titles
- Table 4-21: Microsoft Entertainment Software Titles
Competitive Profile: Broderbund Software, Inc.
- Broderbund's Entertainment Business Makes Sharp Gains
- Table 4-22: Share of Broderbund Sales by Title and Product Group,
1992-1995 (percent): Carmen San Diego, Affiliated Labels,
Living Books, Print Shop, Early Learning, Entertainment, Other
Entertainment Software Not a Major Focus, Success
- Due to Hot Title Myst
- Financial Track Record Is Very Strong
- Conversion to CD-ROM Completed by End of 1995
- Checkered Merger History: Internal vs. External Growth
- Broderbund's Competitive Strengths
- Broderbund Entertainment Products Geared to Adults
- An Outstanding Record of Product Development
- Marketing Synergy Attracts Diverse Affiliated Labels
- Joint Ventures Diversify Product Line and Boost Sales
- Broderbund's Development Factory Churns Out Titles
- Product Releases Emphasize Windows First, MAC Second
- Broderbund Looks for New Entertainment Title Successes
- Table 4-23: Broderbund Entertainment Software Titles
Competitive Profile: Sierra On-Line
- Sierra Improves Financial Position Dramatically in 1996
- ImagiNation Network Sold to AT&T
- Sierra On-Line Focuses on PC-Based Entertainment
- Table 4-24: Sierra On-Line Product Types and Contribution
to Revenues, 1994 vs. 1995
- Sierra Bolsters Market Position Through Acquisitions
- CUC Merger Opens Door to Computer-Based Marketing
- Sierra Buys Golf-Simulation Software Company
- Table 4-25: Sierra On-Line Acquisition/
Joint Venture Activity, 1995-1996
- Sierra On-Line Diversifies to Education Products
- CD-ROM Conversion Has Been Top Priority
- Product Development Efforts Maintain Subsidiary Structure
- Proprietary Animation Technology Boosts Products
- Sierra's Distribution Moves Toward Mass Merchandisers
- Table 4-26: Sierra On-Line PC Entertainment
- Software Titles for 1996
Marketing and New Product Trends
- Pressure Grows for Hit Titles
- Companies Seek High-Profile Personalities
- Cult Title Development
- Less Exclusivity in Licensing Agreements
- Improvements in Software Extend Life of Older Platforms
- Innovations in Marketing Circumvent Shelf Space Shortages
- Extensive Use of Samples and Previews
- Internet Previewing
- Multiplayer Games Over the Internet
- Entertainment Software for Computer Networks
- Software Content Evolves Toward Broader Market
Advertising Expenditures
- Industry Marked by Concentrated Advertising Efforts
- Sega/Nintendo Dominate Advertising Outlays
Advertising Positioning
- Strong Orientation Toward Boys
- TV, Print Ads Crammed with Detail
- Some Ads Target More Adult Audiences
- Examples of Advertising
Consumer Promotions
- A Major Part of Industry Hoopla
- Internet Web Sites Take on Major Role
- In-Store Consumer Promotions Are Prevalent
- Frequent Buyer Discounts
- Highlighting New Releases
Trade Advertising and Promotion
- Trade Promotions Are Traditional Support Activities
- On-Site Events for Media Representatives
- In-Store Support a Common Promotional Strategy
Distribution And Retail
Distribution Channels and Trends
- Distribution a Critical Issue
- Distribution Molded by Historical Development of PC and
- Video Game Industries
- PC Entertainment Software Much Less Dependent on
- Hardware Manufacturers
- Video Game Software Development Under Control
- of Dominant Marketers
- Few Major Distributors in Video Game Market
- Video Game Software Developers and Publishers Enjoy
- Growing Independence
- Video Games Historically Positioned as Electronic Toys
- An Active Market for Used Game Cartridges
- Small Developers Affiliate with Larger Companies
- WMS Moves to Nintendo
- Sega Moves into Third-Party Distribution
- Multi-Platform Titles Help to Diversify Distribution
- PC Software Wholesale Distribution Dominated by
- Large Distribution Companies
- Local Jobbers Supplement Software Distribution
- Affiliate Relationships Help Smaller Developers
- Technology Aids Distribution
At the Retail Level: Software, PC, and Toy Store Chains
- The Major Retail Outlets
- Two Software Chains Merge to Form Neostar
- New Entrants in Video Game Market Impact Retail Companies
- Video Rental Stores Try Hand at Video Game Software
- Computer Stores Emphasize PC-Based Game Software
- PC-Based Software Distribution Broadens into
- Non-Traditional Channels
- Table 5-1: Major Retailers Favored by PC-Based
Entertainment Software Companies
- Bookstores/Educational Specialty Outlets Have PC Software
- Distribution Potential
At the Retail Level: Mass Merchandisers
- Popularity of Entertainment Software Opens Up
- Mass-Merchandiser Retail Outlets
- Benefits and Drawbacks of the Mass Merchandiser
At the Retail Level: Alternative Technologies
- On-Disk Inventory
- Interactive Television May Become a Major Force
- Formation of Interactive Television Services Growing
- PC-Based Interactive Systems Delivered by Cable
The Consumer
Introduction
- Purchasers vs. Users
- Two Principal Data Sources
The Simmons Market Research Bureau Survey
- Adult Ownership of Video Games and PC
- PC Market Gains Not Reflected in Simmons Data
- Three Market Areas Covered in Simmons Data
- The Simmons Indexing System: A Measure of Relative Importance
- Age/Family Traits Indicate Owners/Users of Video Games
- Table 6-1: Demographic Characteristics Favoring Ownership
and Use of Video Games
- Owners/Users of Hand-Helds Present Similar Demographic Profile
- Table 6-2: Demographic Characteristics Favoring Ownership
and Use of Hand-Held Video Games
- PC-Based Game Owner Mirrors Overall PC Owner
- Table 6-3: Demographic Characteristics Favoring Ownership and Use
of a Personal Computer and PC Entertainment Software
- Similarities Between Video Game and PC-Based Software Users
- Table 6-4: Demographic Characteristics Favoring Ownership and
Use of PC Entertainment Software and Video Games
- Simmons Data Also Show Significant Differences
- Similarities in Demographic Characteristics
- Implications for Marketing
The SPA Consumer End User Survey
- The Gender Gap: Males Rule Video Game Market
- Sizable Age Gap Between Purchaser and User
- Gender of Buyers Differs by Age of User
- Similar Gender Profile for PC-Based Games
- Data Suggest More Female Usage
- PC Entertainment Software Purchaser/User Is Older
- Getting Beyond the Young Male Market
- Companies Seeking Subject Matter to Attract Females
- Growth Beyond the Under-20 Market
The European Market
The Products
Market Definition
- Two Product Categories
- Video Software Classifications
- Figure 7-1: European Video Games and PC Entertainment Software
Sales by Genre, 1995 (percent): Shoot-Them-Ups, Adventure/
- Role-Playing, Sports, Strategy Games, Simulation, Other
- Technology Trends in Hardware and Software
- Nintendo Games in World's Largest Interactive TV Trial
- A Euro-Dimension to Multimedia
The Market
Introduction
- Scope of Market Data
- Western and Some Eastern European Countries Covered
- Methodology and Sources for Sales Estimates
- Figures Reported in U.S. Dollars
- Table 8-1: Exchange Rates to the U.S. Dollar
Regulatory Issues
- Table 8-2: European Standards Applicable to Video Games
and PC Entertainment Software
Market Size and Growth
- Retail Sales Total $2.4 Billion in 1995
- Table 8-3: Estimated European Retail Sales of Video Games
and PC Entertainment Software by Category, 1992-1995 (dollars)
- Software Sales Top $1.6 Billion
- Hardware Sales Top $750 Million
- Software Sales Register Much-Faster Growth Pace
- Than Hardware Sales
- Table 8-4: The European Video Games and PC Entertainment
Software Market, 1992-1995 (dollars)
- Share of Sales by Country
- Table 8-5: The European Video Games and PC Entertainment
Software Market: Share of Sales by Country, 1992 vs. 1995
(percent): Germany, UK, France, Italy, Rest of Europe
Market Composition: By Product Type
- Video Games Category Claims Bulk of Sales
- Table 8-6: Share of European Sales of Video Games and
PC Entertainment Software by Category, 1992-1995 (percent)
- Software vs. Hardware
- Table 8-7: Share of European Sales of Video Games/PC Entertainment
Software: Software vs. Hardware, 1992-1995 (percent)
- Video Game Console- vs. PC-Driven Software
- Table 8-8 : Estimated Share of European Market for Entertainment
Software: Video- vs. PC-Driven, 1992-1995 (percent)
- Share of Video Game Sales: Cartridge vs. CD-ROM
- Table 8-9: Estimated European Sales of Video Game Software:
Cartridge vs. CD-ROM, 1992-1995 (dollars)
- Table 8-10: Estimated Share of European Sales of Video Game
Software: Cartridge vs. CD-ROM, 1992-1995 (percent)
- Share of Video Game Hardware by Type of Platform
- Table 8-11: Estimated Share of European Sales of Video Game
Hardware: By Type of Platform, 1992-1995 (percent):
- Dollar Sales, Unit Sales
- A Threshold Year for 16-Bit Cartridge Consoles
- 32-Bit Consoles Enter the Market, 64-Bit Round the Corner
- Pros and Cons of CD-ROM
- PC Entertainment Software: CD-ROM vs. Magnetic Disk
Market Composition: Sales by Retail Outlet
- Game Specialists and Toy Stores Dominate Sales of Video Game
- Hardware and Software
- Specialty Stores Claim Over Three-Fifths of Sales of
- PC Entertainment Software
- Figure 8-1: Estimated Share of European Sales of PC Entertainment
Software by Retail Outlet, 1995 (percent): Specialty Stores,
Computer Shops, Supermarkets/Department Stores, Toy Retailers/
Book Stores, Mail Order
Factors Affecting Market Growth
- An Expanding Pool of Players and Improved Industry Image
- Peer Pressure
- The Used Games Market
- Table 8-12: Indicative Prices for New and Used Video Game
Hardware in Europe, 1995 (dollars)
- Multimedia Drives PC Entertainment Software Category
- Table 8-13: Home PC Penetration in Europe, 1995 (rate per 100)
Upgrades with CD-ROM Drivers Fuel PC Entertainment
- Software Sales
- Divisions Still Plague Multimedia PC
- Book Publishers, Movie Companies, Others Move In
- Industry's Continuing Image Problem
- Family Life Down Under
- Figure 8-2: European Market for Video Games and PC Entertainment
Software: Projected Retail Sales, 1996-2001 (dollars)
Market Projections
- Sales to Peak at $5.7 Billion in 1999
- Table 8-14: The European Market for Video Games and PC
Entertainment Software: Projected Retail Sales,
1996-2001 (dollars)
- Table 8-15: Share of European Sales of Video Games and PC
Entertainment Software: Hardware vs. Software,
1996-2001 (percent)
- Methodology for Forecasts
The Marketers
The Marketers
- Video Game Hardware Marketers
- Video Game Software Marketers
- Marketer Shares
- Leading Game Titles and Pricing
- Table 9-1: Leading Game Software Titles in Europe, 1995
Competitive Issues and Trends
- Long-Term Strategies
- Playing for the "Intelligent Home"
- Backwards Compatibility
- New Products and Strategies
- Consumer Promotions
- Trade Advertising and Promotions
Distribution And Retail
Distribution Channels and Trends
- Distributors Handle Bulk of Sales
- Computer Stores Dominate
- Mail Order Holds Considerable Promise
- Regulations
The Consumer
Demographics
- Purchasing Trends
- Attitudes About Hardware Quality
Appendix I: Examples Of Consumer Advertising And
Promotions
Appendix II: Addresses Of Selected Companies
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