Downloads Driving Gaming Sales Growth
Plus, which 'gamer segment' do you fall under?
by Ryan Geddes
October 19, 2007 - It's no secret that digital delivery is carving out a larger and larger slice of the videogame sales pie. But a new study by IDC and IDG Entertainment claims to have quantified the trend, reporting today that, by the end of 2007, revenue related to online game consoles will dramatically higher what it was just a year ago.
"The increase in revenue derived from the online use of game consoles, including subscriptions (mostly Xbox LIVE), downloadable content, and advertising represents the largest growth in the console software sector," said Billy Pidgeon, IDC's program manager for games research. "In North America alone, online console revenue will triple from $133 million in 2006 to $583 million in 2007. Consumers are increasingly purchasing games by non-traditional means such as downloads or subscriptions."
That could mean big changes are in store for traditional game retailers, who Pidgeon said will need to shift their thinking as online distribution continues to boom.
Although video game console software sales through traditional third party online and retail stores will see a 19.5 percent revenue growth over 2006, according to the IDC/IDGE research, downloadable gaming content will realize a gargantuan 1,029 percent leap.
"In 2007, game-related downloadable content derived from manufacturers' proprietary online console networks will reach $296 million, while subscription revenue will increase from $107 million in 2006 to $277 million," said Pidgeon. "While software sales are still significant -- increasing from $8 billion in 2006 to $9.5 billion this year -- content sold, accessed, or downloaded online to video game consoles over manufacturers' proprietary networks will remain the industry's most exciting growth opportunity in this hardware cycle."
In addition to the online distribution data, IDGE also released the latest results of its ongoing U.S.Gamer Segmentation Study of game buyers themselves.
"In order for game publishers and retailers to truly connect with today's gamers they need to understand the subtle but important differences in the role video gaming plays in their lives," said IDGE marketing director Simon Tonner. "As gaming becomes more interactive and mainstream, marketers need to understand what motivates these various gamer segments, how their tastes differ and what are they looking for when shopping for their next game or console."
IDGE breaks gamers down into these five basic categories:
Core Gamers:Core Gamers choose gaming as their main form of
entertainment and want to maximize their time gaming.
They prefer gaming over going to the movies or out to
dinner.
Status Gamers: Status Gamers are proud of their gaming skills and enjoy being the first to try the newest and hottest titles. They also like to discuss their gaming
experiences at school or work.
Social Gamers: Social Gamers view gaming as a communal experience.They prefer to play games with people they care
about, forming a social link, and coordinate social
functions around gaming.
Active Gamers: Active Gamers prefer games where movements are reflected in the game and allow gamers to get out of their chairs. They use gaming as a physical release.
Casual Gamers: Casual Gamers use gaming as an emotional release and as a way to play different roles. Casual gamers view gaming as a secondary form of entertainment and don't feel the necessity to be the first to try a new game.
"'Status Gamers' have spent the most on video games and systems over the past 6 months and are expected to spend the most in the next 6 months with 'Core' and 'Active' gamers close behind," said Tonner. "In the past 6 months alone, 'Status Gamers' have spent, on average, $296.20. On the opposite end of the spectrum, 'Casual Gamers' have spent $82.20 over the same time period."
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