Consumer Behavior Report December 2007: Video Gaming Trends
Overview
Report Highlights
v7. 12/07
Nintendo Wii Console is the leading contender in this year’s video game console war. The majority of those surveyed, 45 percent, say they have purchased, or intend to purchase, the Nintendo Wii Console over the Xbox 360 and the PlayStation 3 A decreasing trend in video game console prices drives consumers to buy. Console prices are decreasing, but seventy-one percent of online shoppers are still spending more than 50 dollars on video game consoles, games and accessories this holiday season The majority of online consumers are looking to purchase low price range video game systems ($100−$300). Fifty-five percent of the top 20 most popular video game systems fall within the low price range ($100-$300), with an average price point of 168 dollars Video game consoles continue to be a popular purchase. Sixty-four percent of survey respondents say they plan to purchase a video game console, game or accessory in the next 12 months, and 52 percent of survey respondents have purchased a video game console for themselves or someone else in the last 12 months How much is too much when it comes to playing video games. Eighty-five percent of female respondents and 63 percent of male respondents say that playing more than 10 hours of video games weekly is considered unhealthy or excessive to them Notes from the Green: How to Green Your Gaming Gear. Ecologically friendly advice from PriceGrabber.com’s ShopGreen blogger and expert consultant, Olivia Zaleski
What is a Consumer Behavior Report?
The Consumer Behavior Report is designed to give merchants, media and industry analysts insight into shopping trends, pricing and market share. Each month, a different topic will be the focus of the report.
What is the Video Gaming Trends Report?
Video Gaming Trends is the topic of PriceGrabber.com’s December 2007 Consumer Behavior Report. The expected video gaming trends and data were collected from a survey of 3,309 online shoppers conducted in late November 2007. Additional data is sourced from Market Reporter, a statistical database that tracks consumer shopping behavior on PriceGrabber.com. The Notes from the Green section is by Olivia Zaleski, an ecofriendly blogger for PriceGrabber.com’s ShopGreen section. The focus of the ShopGreen section is to provide more than 20,000 products to help consumers live a greener lifestyle. PriceGrabber.com is a major shopping comparison engine, with more than 24 million unique users per month and up-to-date daily pricing of products supplied by more than 11,000 merchants.
CONSUMER BEHAVIOR REPORT December 2007
Video Gaming Trends
Video game consoles continue to be a popular purchase. In a recent PriceGrabber.com survey of 3,309 respondents, 52 percent say they have purchased a video game system for themselves or someone else in the last 12 months. Hands down, the leading contender in the holiday video game console war is the Nintendo Wii Console with 45 percent of those surveyed saying they intend to purchase the Wii over the Xbox 360 and the PlayStation 3. With the holiday right around the corner, 37 percent of those surveyed say they plan to purchase a video game console, game or accessory as a gift this holiday season.
Online Consumer Trends
Online Web sites, including blogs, and recommendations from family or friends are the top two sources survey respondents utilize before deciding to purchase a video game console. A decreasing trend in video game console prices drives consumers to buy. Console prices are decreasing, but seventy-one percent of online shoppers are still spending more than 50 dollars on video game consoles, games and accessories this holiday season. Survey results reveal Nintendo is the leading manufacturer in both video games and consoles. Thirty-one percent say Nintendo authors the best video games while 38 percent say they offer the best video game console.
W hich of the following manufacturers produces the best video games? W hich of the follow ing manufacturers produces the best video game console/portable system?
16% 28%
Microsof t (Xbox 360) Nintendo (Wii, DS)
13% 25%
Microsof t (Xbox 360) Nintendo (Wii, DS)
Sony (PSP, PlayStation 2 & 3)
3% 31% 22%
3%
Sony (PSP, PlayStation 2 & 3) Other Computer or Cell Phone manuf acturer None sure
Other Computer or Cell Phone manuf acturer None sure
21%
38%
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Sony, Microsoft and Nintendo dominate the video game market with their consoles, portable systems, video games, controllers and other accessories. The graph, below, “Demand for Products Made for Game Systems,” shows the demand for products by manufacturer for popular game systems including the Sony PlayStation 3, PlayStation 2, PlayStation, PlayStation Portable, Microsoft Xbox 360, Xbox, Nintendo Wii, DS Handheld, Game Boy Advanced, GameCube and Game Boy Color. Note that consoles and accessories are indicated in green and games in purple. Consumer demand for a manufacturer is measured by the number of times consumers viewed a product page. Significant year-over-year increase in demand for Nintendo and Sony video game consoles. Nintendo consoles showed an increase in demand during November 2007, compared to the same period last year, by 70 percent, while Sony consoles showed an increase in demand by 56 percent. The Wii console is in very short supply across the United States, making it an even more highly sought after commodity, which in effect is driving up prices at most retailers.
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CONSUMER BEHAVIOR REPORT December 2007
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Competitors face massive opposition when up against video games by Nintendo. Thirty-one percent of survey respondents say Nintendo supports the best video games. Demand for Nintendo games trumps Sony games by 45 percent. Nintendo’s wide range of games appeal to consumers interested in music (Music Orchestra, Guitar Hero), academics (Big Brain Academy) and athletics (Wii Sports) to name a few. November 2007 demand for Microsoft video game consoles, games and accessories is still very strong. Consumer demand for Xbox 360, Xbox and supporting games and accessories show a slightly greater volume of consumer interest overall. However, in November 2007 compared to the same period last year Microsoft’s consoles have decreased in demand by 15 percent.
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Demand for Products Made for Game systems: Sony, Microsoft & Nintendo
Games Consoles & Accessories
Nov-06
Nov-07
Nov-06
Nov-07
Nov-06
Nov-07
Sony
Microsoft
Ninte ndo
Source: Market Reporter data from PriceGrabber.com Based on recorded page views
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The majority of online consumers are looking to purchase low price range video game systems priced between $100 and $300. Of the top 20 ranked video game console and portable systems (based on merchant referrals), the majority (55 percent) are low price range ($100-$300) video game systems, with an average price point of $168. Twenty-five percent are mid price range ($300-$500) video game systems, with an average price point of $394. Only 20 percent of the top 20 video game systems fit within the high price range tier ($500 $750), with an average price point of $625.
CONSUMER BEHAVIOR REPORT December 2007
Rank* 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
20 Most Popular Video Game Consoles Nintendo Wii Console PlayStation Portable Slim System Xbox 360 Elite System Bundle Xbox 360 Premium System PlayStation 3 Console with 80GB Hard Drive & Motorstorm Xbox 360 Premium Console Bundle Playstation 3 40GB Console with Spiderman 3 Blu-ray DS Lite Game System - Coral Pink DS Lite Game System - Crimson/Black DS Lite Game System - Polar White PlayStation 3 Console with 60GBHardDrive Xbox 360 HD DVD Player DS Lite Gold Bundle with Zelda: Phantom Hourglass DS Lite Metallic Rose Bundle with Nintendogs: Best Friends PlayStation Portable Slim System Daxter Xbox 360 Halo 3 Special Edition System PlayStation Portable Slim System Star Wars Battlefront Pack Xbox 360 Core System PlayStation 2 Console with Controller Xbox 360 Elite System
Average Price $650 $175 $482 $335 $501 $350 $401 $138 $130 $130 $599 $162 $151 $153 $206 $400 $200 $270 $134 $750
Manufacturer Nintendo Sony Microsoft Microsoft Sony Microsoft Sony Nintendo Nintendo Nintendo Sony Microsoft Nintendo Nintendo Sony Microsoft Sony Microsoft Sony Microsoft
Console
Portable System
Source: Market Reporter PriceGrabber.com 2007 Ranked by Merchant Referrals
Game selection remains a key factor when shopping for video game consoles. Twentysix percent say that game selection is the attribute of most importance when deciding to purchase a video game console.
W hich attribute is of most importance w hen looking for a video game console?
30%
26%
24% 22%
23%
20%
10% 5% 0% Game Selection Ease of Use Price High def inition graphics and playback Online Capabilities
CONSUMER BEHAVIOR REPORT December 2007
The animated / child-friendly video game genre ranks highest in popularity. Forty-two percent of female respondents say these video games interest them the most, while 31 percent of male respondents say first-person shooting and war games interest them the most. Overall, 29 percent of survey respondents most enjoy animated / child-friendly games.
What type of video games interest you the most?
50
40 Overall 30 Male Female 20
10
0 Sports First-person shooting/ war Online multiplayer Car racing Animated / children-friendly
Source: December 2007 Video Game Survey results
Historical Average Pricing
Over the last two years, video gaming has attracted a broader consumer market, from hard core gamers to casual users. The expanded video game market has provided the opportunity for manufacturers to find a niche, customize products and adjust prices. The PlayStation 3 console is sold at a higher price and boasts a Blu-ray DVD for quality graphics and a high-speed cell processor that appeals to hardcore gamers. The Wii is reasonably priced and offers a range of games and a user friendly controller for the casual gamer. The overall pricing for consoles is trending downward; however, limited supply has been driving prices upward over the last three months. The top three most popular consoles were launched within a year and range in average price between 300 and 700 dollars.
Top Console Contenders Nintendo Wii Console Xbox 360 Premium System PS3 Console with 60GB Hard Drive
Average Price $317 $539 $655
Launch Date Oct-05 Oct-06 Oct-06
CONSUMER BEHAVIOR REPORT December 2007
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The “Historical Pricing for Wii, Xbox 360 & PS3 Consoles” graph below shows the average pricing trends of the top three video game console contenders: Nintendo Wii, Microsoft Xbox 360 Premium System and PlayStation 3 with a 60GB Hard Drive. The average pricing trend lines are illustrated using a 21moving-day-average. The trend lines show an overall decrease in prices of consoles beginning with the launch of the Xbox 360 in November of 2005.
Historical Pricing for Wii, Xbox 360 & PS3 Consoles
$1,400
PS3
$1,200 $1,000 $800
Xbox 360
Wii
$600 $400 $200 $0
No v05 Ja nM 06 ar M -0 6 ay -0 6 Ju l-0 Se 6 p06 No v06 Ja nM 07 ar -0 M 7 ay -0 7 Ju l- 0 Se 7 p07 No v07
Source: Market Reporter PriceGrabber.com 2005-07 Based on average pricing over product life 21 day moving day average
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Increase in the price of the Wii Console. The recent increase in the price of the Wii Console reflects the decreasing supply and the growing demand of online consumers. According to PriceGrabber.com, beginning in August of 2007, online merchants increased the price of the Wii Console due to decreasing supply. The Wii console is now available at the premium average price of 650 dollars, which is 161 percent more than the regular price at 250 dollars. PlayStation 3 catches up to its competitors. The PlayStation 3 has a comparatively higher price and was released a year after its direct competitor, the Xbox 360. The onset of drastic price decreases began in December of 2006 when the production glitches were solved. In July of 2007 Sony dropped the 60GB hard disk model $100 to $500 and stated that the 80GB model would sell at the same price when the 60GB model stock runs out. In October of 2007 Sony released the 40GB hard disk model at a competitive price of $400.
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Future Video Game Trends
Video games have a future beyond pure entertainment. There have been discussions of integrating educational role-playing video games into the classroom to teach ideas and skills not found in traditional textbooks. Video gaming is also taking steps towards converting passive entertainment into a form of exercise.
CONSUMER BEHAVIOR REPORT December 2007
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How much is too much when it comes to playing video games. According to online shoppers, 65 percent say that playing more than 10 hours of video games weekly is considered unhealthy or excessive to them. Eighty-five percent of female respondents, and 63 percent of male respondents, say that playing more than 10 hours of video games weekly is considered unhealthy or excessive to them. Consumers may change their minds as video game manufacturers begin to create games for exercise.
How many hours of playing video games per w eek is unhealthy or excessive to men?
19%
13%
Less than 5 hours 5 - 9 hours
10 -14 hours 24% 17% 15 - 19 hours
27%
More than 20 hours
How many hours of playing video games per week is unhealthy or excessive to women?
Less than 5 hours
8% 19%
5 - 9 hours
24% 17%
10 -14 hours 15 - 19 hours More than 20 hours
32%
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Soon video games will incorporate fitness into gaming. The Wii Fit, coming as soon as January 2008, is a sensor mat that measures users movements and senses if they are doing the exercises correctly. Wii Fit will guide gamers through yoga, muscle toning, aerobic and balance exercises. The Wii Fit fitness system for the Nintendo Wii is currently shipping in Japan; however, if you cannot wait, you can purchase it outside of the USA at Play-Asia for $189.90.
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CONSUMER BEHAVIOR REPORT December 2007
Notes from the Green: How to Green Your Gaming Gear
Some of the most popular gift items for kids and teens this holiday season are electronic games. However, video games and even handheld games don’t play well with the environment. Electronic gaming production and disposal can lead to various ecological problems from toxic pollution to excessive energy consumption. Although the gaming industry has not yet jumped on the environmental bandwagon, there are several ways to make gaming just a bit greener. 1. Be Efficient Gaming apparatus— televisions, speakers, DVD players, high definition projectors, and 1 computers —consume a huge amount of energy, 25 percent of household electricity to be exact. Although today's home electronics are far more efficient than their older siblings, Americans continue to consume a massive amount of power through poorly designed electronics. The next time you purchase an electronic you will use for gaming, make sure it is Energy Star certified. Energy Star is a joint program of the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy that identifies and promotes energy efficient products. Those products carrying the Energy Star symbol are better not only for the environment, but also your electricity bill and wallet. Online retailers are making it easier to identify which products are Energy Star Compliant. For example, at PriceGrabber, there is a filter option that allows the user to display only products that are compliant. Twenty-three percent of LCD and plasma screen televisions and 13 percent of desktop computers listed on PriceGrabber.com are energy star compliant. 2. Power Down Many anxious gamers leave their computers on standby 24-7, thus using power round the clock. A great way to “green” your electronics is to simply turn them off when they are not in use. If you would rather not spend your gaming time constantly plugging and unplugging your chargers, a simple power bar, or surge protector, does the trick by turning everything off with a simple tap of your foot or finger. 3. Recharge If you are using handheld gaming devices, make sure you power them with rechargeable batteries. Of the 15 billion batteries produced and sold each year, most of them are disposable and only a small percentage of these are recycled. The fastest battery chargers revive AAs in as little as 15 minutes, and pay for themselves after just a few uses. Visit the Rechargeable
Battery Corporation (www.rbrc.org) for a rechargeable battery drop-off location near you.
Source via Energy Star: Energy Information Agency's 2006 Annual Energy Outlook - Table A4 Residential Sector Key Indicators and Consumption.
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CONSUMER BEHAVIOR REPORT December 2007
Disclaimer
The information, data trends and analysis in this report were prepared by PriceGrabber.com. The primary data included in this report are results from the Pre-Holiday Survey and Market Reporter. The survey was conducted from November 28 to December 6, 2007, with 3,309 respondents. The Notes from the Green was compiled by Olivia Zaleski, expert green consultant and PriceGrabber.com blogger. The confidence interval for all results is 95 percent with a margin error of approximately +/-3 percentage points for the entire sample. This report may not be reproduced, distributed or published by any person for any purpose without PriceGrabber.com’s prior written consent. Please cite source when quoting. Source: PriceGrabber.com For supporting data and information on the Consumer Behavior Report, to schedule phone interviews, or for journalists who would like to request a custom survey for their needs, please contact Sara Rodriguez at (310) 954.1040 ext 282 or sara@pricegrabber.com.