And The Survey Says...

[Tami]

[b]PURCHASING POWER OF HEAVY GAMERS EXCEEDS THAT OF ALL OTHER VIDEO GAMING SEGMENTS[/b] [size=1]These statistics were compiled by the NPD Group, a consumer research company. The report is based on online survey responses from 11,638 members of NPD’s online consumer panel. These respondents, ages 6 to 44, are qualified users of a PC/Mac or video game system for gaming. The survey data is weighted to represent the population of individuals ages 6 to 44 in the U.S. The following key variables were used to create the gamer segments: Ownership; Use; Frequency; Purchase. Fieldwork was conducted from January 11-29, 2007.[/size] At 2 percent, Heavy Gamers are the smallest gamer segment, yet they purchase more than six times as much per individual and eight times more than the average gamer in the last quarter on video games (console, portable and PC) than the largest segment, Avid PC Gamers, according to The NPD Group’s recent report, Gamer Segmentation II. The report provides detailed analysis into six gamer segments by key behavioral and demographic metrics. According to the report, of the 191 million gamers who personally play games on PC/Mac or video game system, 33 percent are Avid PC Gamers, 22 percent are Secondary Gamers, 20 percent are Avid Console Gamers, 15 percent are Mass Market Gamers, 8 percent are Casual Kid Gamers and 2 percent are Heavy Gamers. Heavy Gamers dominate with the highest frequency of use, both overall (39.3 hrs/wk of game play on any system) and by system type (23.9 hrs/wk playing consoles, 1.9 hrs playing portables and 13.6 hours playing PC/Mac). After Heavy Gamers, Avid PC Gamers spend the most time on PC/Mac gaming (10.4 hrs/wk), while Avid Console Gamers lead in console use (8.9 hrs/wk) as well as portable use (0.8 hrs/wk). Heavy Gamers purchased the most titles (13.1 in the past three months), while Avid Console Gamers purchased 1.9 titles, and Mass Market Gamers purchased 2.0 titles. “Heavy gamers have always been a focal segment for the games industry because they're so deeply invested in gaming,” said Anita Frazier, industry analyst, The NPD Group. “The potential for industry growth lies with the other, larger groups, and getting them increasingly involved in gaming over time.” The theme of expanding beyond the “core” continues to be pronounced in today’s gaming landscape, moving beyond the demographics and characteristics typically associated with Heavy Gamers and into more casual and mainstream gamers. For example, those spending the least amount of time on gaming on a weekly basis are buying at least one game per quarter, while females make up between 16 percent and 50 percent of each segment. THE CONTINUING RISE OF DIGITAL DOWNLOADS AND ONLINE GAMING While Heavy Gamers are most likely to purchase video games digitally, Avid PC Gamers are more inclined than Heavy Gamers and most other segments to digitally download more than half to all of their VG game purchases. More than 1 in 5 Secondary Gamers report that they will “definitely” download micro-transactions and more than 3 in 5 Heavy Gamers are likely to download micro-transactions. This points to opportunity in the area of downloadable content, supported not only by gamers’ likelihood to download but also their willingness to pay between $5.72 to $10.92 per micro-transaction, depending on content type and gamer segment. Online gaming is high across the board, not just among the most active segments with Heavy Gamers at 83 percent and Avid PC Gamers at 74 percent, but also among segments that are less engaged in gaming overall such as Secondary Gamers at 58 percent and Casual Kid Gamers at 38 percent. The same holds true for top-box micro-transaction download likelihood: After Heavy Gamers (63-percent) and Avid Console Gamers (53 percent), Casual Kid Gamers are tied with Avid PC Gamers in third place for likelihood to download micro-transactions (41 percent and 40 percent, respectively). Methodology These statistics were compiled by the NPD Group, a consumer research company. The report is based on online survey responses from 11,638 members of NPD’s online consumer panel. These respondents, ages 6 to 44, are qualified users of a PC/Mac or video game system for gaming. The survey data is weighted to represent the population of individuals ages 6 to 44 in the U.S. The following key variables were used to create the gamer segments: Ownership; Use; Frequency; Purchase. Fieldwork was conducted from January 11-29, 2007. and further to that report....the Canadian Videogame Industry is definitely alive and well.... According to The NPD Group, a leading provider of retail and market information, Canadian video game retailers saw year-to-date 2007 (YTD’07) retail sales of video games reach $498 million, a 61 percent increase over $310 million generated during the same time period last year. According to NPD, all categories experienced exponential growth for the first half of 2007 (Jan. – June). Sales of video game hardware, which includes console and portable products, exceeded $205 million, a 111 percent increase over YTD’06. Combined video game software sales for portables and consoles reached $205.5 million, accounting for 46 percent of total industry sales in Canada. The accessories category, which includes products such as controllers and memory cards for consoles and portables, saw an increase of 68 percent, generating $62 million. "The video game industry in Canada is strong and continues to perform extraordinarily well," said Darrel Ryce, Director of Technology and Entertainment, The NPD Group. "This marks the fifth consecutive mid-year time period in Canada when sales were higher than the same time period from the previous year. What is so exceptional about year-to-date 2007 is that the growth is so significant."

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And, if you're wondering about the state of the game industry in the USA.... [b]2006 U.S. VIDEO GAME AND PC GAME RETAIL SALES REACH $13.5 BILLION EXCEEDING PREVIOUS RECORD SET IN 2002 BY OVER $1.7 BILLION[/b] Total Industry Experienced 18 Percent Growth Over 2005 According to leading marketing information provider, The NPD Group, U.S. retail sales of video games, which includes portable and console hardware, software and accessories, generated revenues of close to $12.5 billion, exceeding the previous record of $10.5 billion set in 2005. Retail sales in the PC game software industry showed signs of growth, with revenues up one percent, exceeding $970 million in 2006, bringing the total console, portable and PC game industry close to $13.5 billion, an 18 percent increase over the previous year, and a 15% increase over the previous record achieved in 2002. Aside from portable hardware which was flat year-over-year, all video game categories experienced robust growth, with the driving force in sales led by the console hardware, portable game software and portable game accessories categories, which saw respective dollar sales increases of 88 percent, 19 percent and 36 percent when compared to 2005. Including PC games, total industry software sales were up 6 percent to $7.4 billion, from $7.0 billion in 2005. “It’s refreshing to see an increase in retail sales of PC games after having experienced a few years of declines,” said Anita Frazier, industry analyst, The NPD Group. “With revenues from digital downloads and subscriptions on the rise as well, the pc games segment of the industry remains healthy.

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However, it seems that some people don't know how to harness the true power of their gaming platforms.... [b]THE NPD GROUP REPORTS ON NEXT GENERATION VIDEO GAME SYSTEM FUNCTIONALITY AND USAGE[/b] According to Next Gen Functionality & Usage, the most recent report from The NPD Group, today's next generation video game systems show significant gaps between owners aware of functional features extending beyond video game play and those who are unaware of these features. However, the lack of awareness of various functions and features are more pronounced on some systems than on others. The study, which analyzes next generation system purchase intent, as well as owners' awareness of, usage of, and attitudes toward next generation functional features extending beyond video game play, provides extensive insight into the consumer's mindset when it comes to these systems. Awareness Deficits Present Meaningful Opportunities While playing games is the primary function of all video game systems measured in the study, it should not come as a surprise that, despite marketing efforts to educate the consumer, awareness of functions that extend beyond gaming are comparably lower. However, when importance and, in some cases even usage, are notably higher than awareness, a strategic opportunity surfaces. For example, PlayStation 3 (PS3) owners are downloading additional content as frequently as Xbox 360 (360) owners, but unlike 360 owners, the majority of owners and likely purchasers are simply unaware that this is even possible on a PS3. Were awareness higher, one could logically deduce that download activity would increase as well. Another such area, across all systems measured, is backward compatibility. For example, at 71 percent, PS3 owners and likely purchasers, rate backward compatibility as the most important PS3 function, yet only 37 percent are aware it even exists as a PS3 feature. The same types of trends can also be seen in different areas (varying by system) such as ability to link to portable systems and Internet connection via gaming device. Nintendo's Wii (Wii) is associated mainly with its unique motion-sensing controller, wireless connectivity and character customization. The fact that motion-sensing controller is also rated as the most important feature means it is in line with high awareness ratings. As in the case of PS3, however, Wii owners are also interested in the more "basic" features like connecting to the Internet and backward compatibility/playing older GameCube games. It can be seen then, that this trend is about the new supplementing, but not overshadowing, the old. For portables, PlayStation Portable (PSP) functions which current system users and likely purchasers are most aware of are the ability to watch movies and videos (52 percent), the ability to play music (49 percent) and the ability to view photos (43 percent), while Nintendo DS (NDS) functions that system users and likely purchasers are most aware of are touch-screen (57 percent), dual-screen (53 percent) and stylus function (49 percent). Other functions, such as online gaming, also favored one system over another, with NDS users being more likely to use their systems to play a game with friends using wireless connectivity than PSP users are, and 360 users being more likely to use their systems to play games with friends online than PS3 users are. "This study verifies what many of us already know: features related to playing games are by far the most important to consumers of video game systems," said Anita Frazier, industry analyst, The NPD Group. "While systems' capabilities of providing owners with additional features may become more important in the future, currently the importance of these features and the awareness among consumers of these features is far from universal. To make headway in this 'next-gen' race, manufacturers still need to be primarily concerned with the quality and entertainment value of the games themselves." Methodology The report is based on online survey responses from 6,260 members of NPD's online consumer panel. These respondents, comprised of males and females ages 6 to 44, are qualified owners of at least one next generation system (PS3, PSP, Wii, NDS, Xbox 360). In addition, non-owners were captured in order to further probe on next generation system purchase intent and other areas. Fieldwork was conducted from April 4-10, 2007. and in case you didn't know, most Gamers (in the USA, according to the survey) are net-junkies.... [b]The NPD Group Reports That Sixty-Two Percent of All Gamers Report Playing Video Games Online[/b] Annual Study on the Online Gaming Landscape in the U.S. Focuses on Time Spent, Consumer Demographics and Behavior, and Spending in this Market Among all gamers, 62% report playing games online, according to NPD’s third annual online gaming report, “Online Gaming 2007: The Virtual Landscape.” The study covers gamers’ perspectives on online gaming via PC, console and portable systems). Systems analyzed include Nintendo’s Wii and DS/DS Lite handheld systems, Sony’s PlayStation 2, PlayStation 3 and PSP handheld system, Microsoft’s Xbox and Xbox 360, or PC/Mac gamers. Among video game systems used for online gaming, Xbox 360 has the highest percentage of use (54%). Among the 29% who use a video game system to play games online, the majority (54%) uses Xbox 360, followed by PS2 (45%). Relative to other system user bases, Nintendo Wii users are most inclined (76%) to be online gamers. Xbox 360 and PS3 users are next in line, each with about 7 in 10 reporting that they game online. According to the report, a relatively large percentage of online gamers are female (42%). Overall, online gamers are most likely to be age 25-44, console owners, casual gamers (defined as players of card, puzzle, word and arcade games), and live in mid income households ($35K-<$75K). “With the intense interest on the success of MMORPG's recently, it might surprise some that the audience for online games is still largely the casual player,” said Anita Frazier, industry analyst, The NPD Group. “Understanding exactly who is playing what and where is crucial for the industry to realize the potential revenues that online revenues represent for future growth.” When it comes to hours per week spent playing games online, Xbox 360 tops the list with a mean of 7.1 hours per week. PS3 comes in second place with 6.1 hours, and PC/Mac users spend 5.8 hours a week on online gaming using a PC/Mac. All other systems are under four hours a week for online game play. The top three genres played online are card, puzzle, arcade and word games (44%), family-oriented games (25%) and RPG/MMOGs (19%). Interestingly, online gambling is a formidable genre in the online gaming landscape, with 17% of gamers preferring online gambling/casino games such as poker. PC online gamers are more inclined to prefer casual, family oriented and gambling games, whereas console/ portable online gamers are more inclined to prefer non-casual game genres such as shooting and racing games. Gamer Segmentation With regard to gamer segments, the largest population of online gamers, Avid PC Gamers (41%) and Inactive Gamers (21%), are significantly less likely than most gamers to play games online using a console. Online Purchasing and Micro-transactions According to the report, 85% of purchasers bought more than three-fourths of their games in physical format, while only 5% of purchasers bought three-fourths of their games in digital format. Across all micro-transaction types, online gamers are more likely to download micro-transactions on next-gen systems than on PC/Macs or earlier generation systems. Methodology The report is based on online survey responses from more than 11,600 members of NPD’s online consumer panel. These respondents are qualified users of Nintendo DS/DS Lite handheld systems, Nintendo Wii, PlayStation 2, PlayStation 3, Sony PSP handheld system, Xbox, Xbox 360 or PC/Mac who play games online. The survey data is weighted to represent the population of individuals ages 6 to 44 in the U.S. Fieldwork was conducted from January 1-29, 2007. So...just [b]why[/b] do some people buy games? [b]NEW (ok so the report is from 2006...) REPORT FROM THE NPD GROUP PROVIDES INSIGHT INTO WHAT DRIVES CONSUMERS TO PURCHASE PC AND VIDEO GAMES[/b] While price plays an important role in a consumer’s final decision whether or not to purchase a PC and/or video game for themselves, it’s the type of game, word of mouth and of particular importance, being able to take a game for a “test drive” that are the most important factors, according to The NPD Group’s Games Purchase Drivers Report. The report, the first of its kind from NPD, provides insight into what drives consumers to purchase PC and video games and the sources of information used and weighed when making purchase decisions. It also looks at purchase drivers through the lens of NPD’s six gamer segments: Heavy Gamers, Avid Console Gamers, Mass Market Gamers, Prefer Portable Gamers, Secondary Gamers and Infrequent Gamers. According to the report, other important sources of information when considering whether or not to purchase a game are advertisements, specifically, TV, magazine and online ads, word of mouth and Web sites. Web sites such as gaming sites and game company sites are relevant sources of information, but they are less important when the consumer gets closer to making the actual purchase decision, when other factors such as being able to take the game for a “test drive” at an in-store location, online, or at a friend or relative’s house, matter much more. "While various means of allowing consumers to test drive games have long been an important part of most publishers' marketing mixes, the findings of our study now show that it is of particular importance for attracting the broader gaming audience,” said Anita Frazier, industry analyst, The NPD Group. “Ads, reviews, and other vehicles are relatively more influential to the heavy gamer, but to attract more casual players, getting games into their hands so they can experience the fun first-hand is essential.” In Time for the Holidays While not the most important purchase decision influencer, price increases in importance when the purchaser is thinking about buying a game for someone other than themselves. In fact, it is the top consideration when buying games for others, whether this person is a child or an adult. The recipient’s request for the game, the game’s genre and the gift-giver thinking the recipient would like the game are additional factors that gift-givers take into consideration when purchasing a game. “As we head into the critical holiday season, it's important for retailers to note that the most important influence on a gift purchase is price,” said Frazier. “Retailers should consider providing shoppers with a recommended game list at gift-friendly price ranges to make the purchase decision easier.” Methodology Data was collected via an online survey emailed to a representative sample of 12,100 NPD Consumer Panel members ages 13 and older (ages 6-12 were captured via surrogate reporting) with the final survey data weighted to represent the U.S. population of individuals ages 6 and older. Qualified respondents have to “typically purchase” video and/or PC games, and have to personally play PC games, and/or personally play one of the Current-Gen or Next-Gen consoles or portable systems. Fieldwork was conducted from July 6-14, 2006.