Console and Handheld Gaming Software: A Global Strategic Business Report
San Jose, California (PRWEB) August 13, 2012
Follow us on LinkedIn – Video games emerged as one of the fastest growing sectors of the global entertainment and media industry in a very short period of time. Despite being a new entrant, the video games industry emerged as a major competitor to traditional entertainment industries such as cinema. The video games industry is projected to outstrip several traditional media industries in terms of growth in the near future. The demand for video games also stimulates the launch of latest and faster central processing units in computers. As entertainment becomes increasingly realistic, video games require higher processor speed and companies such as Intel and IBM are developing high-speed processors to meet the increasing demands of the entertainment software. At present, several countries in the world house video games development and production centers. The US and Japan are the traditional leaders in video game development. In the recent past, several developing countries such as China and India took the necessary steps to attract foreign video games publishers to their shores.
Sales of gaming consoles are largely dependent upon the success of the gaming software, in other words the content. A classic case is the success of Xbox consoles of Microsoft, which is accredited to the success of the Halo title. Gaming software has traditionally been accounting for a significant share of the video game market. However, the distribution of the market is highly uneven, with most of the revenues emerging from few titles. As a result, software continues to remain a major focus for gaming, which is a reason behind Microsoft’s acquisition of Bungie Studios way back in the year 2000, providing the company with the rights to the Halo franchise. The process of game development involves support offered to game development studios from large publishing houses, which helps them through the long development cycle. The companies do not make any revenue during this period. Once developed, the publisher incurs additional costs in the form of promoting the game and remains the beneficiary of any sales proceeds made thereafter. However, the publisher stands to lose all initial investments when a title fails in the market. Given this risk, publishers continue to rely on a very basic formula of developing successful concepts with respect to game franchises, followed by roll out of sequels to the successful games.
Motion-sensor games have penetrated in a big way into the console gaming market. These games have managed to oust the traditional way of playing console games where games are operated through a controller by the user sitting on a couch. The availability of these inexpensive components has enabled the emergence of a new interface option in the console gaming market. What followed was the development of several games that revolve around physical activities including sports such as tennis and boxing. Owing to the ease that these games offer, the natural audience for gaming has substantially increased since their launch. Wii from Nintendo was the first in this breed, which demonstrated superlative growth in sales, even outselling some of the leading console games in the market following its introduction. A recent success in this space is Microsoft’s Kinect, a motion-sensing add-on component to Xbox, which was launched in the North American market in the year 2010. The product became an instant hit, and emerged as the fastest selling consumer device ever.
If trends over the past few years are of any indication, handheld gaming is increasingly becoming a niche market. Over the long term, the gaming market is expected to witness unit sales dropping, although at a milder pace. Demand for handheld gaming is not expected to be supplanted totally, as a segment of the market is expected to continue creating demand for these products. However, rising use of smartphones for gaming would certainly turn the handheld console gaming to a niche market. Although the recent and current trends have not been encouraging for the console gaming market, some hope exists for the market in the near future. Leading console producers in the market such as Sony, Nintendo and Microsoft are expected to roll out new console products in the market in the next few years, potentially providing the much needed momentum for console gaming market post 2014.
Piracy is a major threat to the entire video game industry as it causes massive revenue loss. A large number of new console and handheld games are illegally distributed on the Internet as soon as they are officially launched in the market or some times much before their official launch. In order to combat this monstrous threat, video game companies are investing in the development of disruptive technologies and are embarking on educational and awareness campaigns. A number of publishers are also switching over to online gaming to curb this menace. Additionally, rapid growth of MMOGs or Massive Multiplayer Online Games is posing a substantial threat to handheld and console games. Customers can gain access to these games on the basis of subscription. The threat looms large even as some of the latest console and handheld gaming devices offer Internet capabilities. Yet another threat emerges from Mobile phones, especially smartphones. Although dedicated handheld gaming devices accounted for a greater share of gaming software revenues when compared to mobile phones in the recent past, mobile phones, especially smartphones, are forecast to outstrip dedicated handheld gaming devices and emerge as the leading mobile gaming platforms in future.
The US represents the largest regional market worldwide, as stated by the new market research report on Console and Handheld Gaming Software. However, Asia-Pacific is expected to emerge as the fastest growing market worldwide witnessing a compounded annual growth rate of 6.3% during the analysis period. Segment wise, Console Gaming Software represents the largest as well as the fastest growing segment in the global console and handheld gaming software market.
Major players profiled in the report include Activision Blizzard, Inc., Electronic Arts Inc., Gameloft® SA, Konami Digital Entertainment, Inc., Microsoft Corporation, Nintendo Co., Ltd., Playtech, Sony Corporation, The Walt Disney Company, and Ubisoft, among others.
The research report titled “Console and Handheld Gaming Software: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides comprehensive market overview, trends & issues, recent software introductions, recent industry activity and profiles of leading game publishers. Analysis and overview is provided for the years 2010 through 2018, for major geographic markets, such as US, Canada, Japan, Europe, Asia-Pacific, Middle East and Latin America. Market analytics in the report are provided for global and regional markets in terms of sales figures in US$ Million by the following segments – Console Gaming Software and Handheld Gaming Software. The study also provides historic data for an insight into market evolution over the period 2004 through 2009.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
Global Industry Analysts, Inc.
Web Site: http://www.StrategyR.com/