Posts Tagged ‘strategy analytics’

New Report: PS3 surpasses Xbox 360 in Global Active Devices

Friday, April 1st, 2011

Market research firm Strategy Analytics has recently published a report indicating that Sony’s PlayStation 3 has overtaken Microsoft’s Xbox 360 in terms of globally active devices.  In the new report, “Global TV Games Console Forecast: Will New Sensor Technology Revive the Demand?” the firm documents that the active installed based of PS3s at the end of 2010 clocked in at 43.4 million.  Xbox 360’s numbers totaled 42.9, while Nintendo remained king of the console hill with 75.5 million active devices.

Obviously, based on the title of the report, there’s a heavy focus on motion controlled UI, which all three platforms now support.  Sony’s Move controller is easily compared to the Wii’s groundbreaking technology, while Microsoft has gone their own route with the Kinect.

“While the Kinect peripheral has given a boost to Microsoft’s Xbox 360 strategy, the console’s performance outside of the US continues to disappoint,” says report author, Jia Wu, Senior Analyst in Strategy Analytics’ Digital Consumer Practice. “Global demand for Sony’s PS3 has exceeded that of the Xbox 360 in each of the past two years, and we expect that to continue over the coming years.”

The report also includes predictions for the remainder of 2011, with Xbox excpected to fall short of Sony’s numbers.  Strategy Analytics points to a healthy 15.7 million PlayStations moving out the door, while Microsoft with move 13.7 million Xbox units.  The group is also forecasting Nintendo’s continued decline, with just over 10 million units expected to find new lodgings with consumers.  Along with other industry analysts, Strategy Analytics is predicting that Nintendo will launch a successor to the Wii by Q2 2012.

“Microsoft’s second generation console has dramatically improved the company’s position in the digital home,” notes David Mercer, Principal Analyst at Strategy Analytics in a statement. “But its relative weakness in Europe and Asia acts as a drag on its global performance. Microsoft should continue to innovate around its motion sensor technology, which will become increasingly relevant in the smart home era.”

Authored by Senior Analyst Jia Wu, the Global TV Games Console Forecast: Will New Sensor Technology Revive Demand is available directly from Strategy Analytics.

 

Games industry to balloon to $64.9 billion by 2013

Monday, February 22nd, 2010

A new report issued by Strategy Analytics, Inc. this past Thursday forecasts that the global video game software market will continue it’s growth in the coming years. According to Strategy Analytics, 2009’s revenues are in the $46.5 billion ballpark, and will continue to grow to a massive $64.9 billion by the close of 2013, indicating a 40 percent growth rate over 4 years.

new-playstation-store-frontThe report predicts both physical game software (console, handheld, and PC) growth, and digital download activity, IGA, sales of virtual goods, and subscription services. The online games revenues sector is expected to have a compound annual growth rate of 18.7 percent, reaching $24.8 billion by 2013, accounting from more than 38 percent of total video game software recenues.

“Strategy Analytics predicts more revenue growth from online sources instead of from traditional physical game sales as broadband adoption continues, which is similar to other media sectors. More gaming devices and games are being connected online and new online revenue models are appearing on the market,” said Martin Olausson, Director of Digital Media Research at Strategy Analytics.

The big winner in Strategy Analytics’ research is virtual goods sales in social networking based games. As to be expected, the Asian market is expected to lead this consumption, however North American and European markets will experience accelerated virtual goods sales growth.

Jia Wu, Analyst in the Strategy Analytics Digital Media Strategies (DMS) service and author of the report, added, “New online revenue streams, such as in-game dynamic advertising and sales of virtual goods, will spur rapid growth in online game revenues in the coming years.”

The Strategy Analytics “Global Video Game Market Forecast” is available from StrategyAnalytics.com and includes information on online gaming revenue streams, electronic sell through, subscription services, IGA, and virtual goods sales data. The report also includes country specific data from a wide range of markets including Argentina, China, Demark, Germany, Mexico, Russia, the UK and USA.

 

BOOM! Virtual Worlds expect explosive growth

Tuesday, June 16th, 2009

According to yesterday’s release from market research firm Strategy Analytics, the virtual worlds sector is set up for some truly phenomenal growth.  The Boston based firm projects the global virtual world population to grow from today’s approximately 186 million inhabitants to a whopping 640 million (the equivalent of twice the current US population) by 2015.  That’s nearly a 25 percent compounded annual growth rate (CAGR).  Say it with me now….holy crap!

39306The largest growing sector should come as no surprise, kids between the ages of 5 and 9.  Strategy Analytics predicts that this demo will grow 27 percent, while tweens and teens should see a growth rate of 21 percent.  This growth rate may be effected by what I discussed yesterday, regarding NPD’s reports on a younger trend of consumer electronics consumers, particularly regarding laptop computers.

In the report, “Virtual Worlds Market Forecast 2009-2015,” Strategy Analytics goes on to predict that virtual worlds will continue to improve the overall user experience, and thus convert registrations to active users at a 38 percent CAGR through 2015.

“The high conversion of registrants to active users demonstrates that users are finding value – in the form of entertainment, engagement, and social interaction,” according to Barry Gilbert, Vice President of the Strategy Analytics Gaming Sector and author of this report. In addition, Gilbert noted, “Access to virtual worlds across a variety of platforms, from consoles to mobile devices, will help catalyze growth.”

And now for the almighty Dollar.  Where’s the money coming from?  Well, according to the report, the top three to take to the bank are microtransactions, subscriptions, and advertising/sponsorships.  Said microtransactions are expected to grow from slightly over $1 billion in 2008 to….wait for it…..wait for it…..$17.3 billion in 2015 accounting for 86% of the revenue generated by virtual worlds.

Here’s how Strategy Analytics numbers break down (in millions):

picture-13

Obviously this is outstanding news for youth focused virtual worlds, including fatfoogoo client CampFu.  If there’s ever been a doubt about the staggering growth potential hidden in these virtual worlds, and the monetary potential stored away in virtual goods, if Strategy Analytics projections are spot on, these doubts could be summed up in one word: Shattered.