Skip to main content

Will the Game Console Market Recover in 2013?

Last year was very troublesome for the video gaming console vendors. After shipping over 3 million Wii U units during the 2012 holiday season, Nintendo’s next generation console is now facing a challenging market.

2012 saw just under 30 million game consoles shipped from Microsoft, Nintendo, and Sony (excluding PS2) -- that's roughly 10 million fewer than the previous year.

Despite these results ABI Research looks at 2013 and beyond with cautious optimism, but the company expects Microsoft and Sony to determine the future prospects for the game console, not Nintendo.

"The Nintendo Wii U’s troubles are not indicative of the expected market reception for the remaining 8th generation of consoles," said Michael Inouye, Senior analyst at ABI Research.

In fact, the Wii U will likely prove a closer fit with the current generation than the next.

The software released to date also bears out this assessment with many cross-platform games that were previously available from Microsoft and Sony. While the Wii U Gamepad offers some novel gaming elements it has not yet resonated with core gamers.

ABI believes that 2013 is expected to start a chain of positive growth years for the game console market, ending the previous annual declines. This optimism, however, is predicated on several factors.

First, that the Wii U receives a price reduction in 2013. Second, that next gen consoles from Microsoft and Sony launch with adequate time and production to meet holiday demand, with pricing below $450 and ideally at $350.

Finally, that the next generation consoles don’t adopt significant consumer unfriendly practices that will cause consumers to rethink their purchases -- such as steps to inhibit the used game market or requiring an always on DRM/Internet connection to prevent other forms of piracy.

"Mobile gaming has certainly diminished the opportunities for console manufacturers in the casual gaming market and this has impacted Nintendo the hardest, added Sam Rosen, TV & Video practice director.

The evolving business models and added competition have also created additional pricing pressures that encourage price cuts sooner than manufacturers would like.

New entrants into the console market will add an additional layer of complexity, which should make things interesting, but ABI still anticipates the market will prove a difficult one for the upstarts. We'll have to wait and see.

Popular posts from this blog

Big Data Analytics Revenue to Reach $215.7 Billion

Across the globe, more leaders seek actionable insight from the customer data they've stored in huge data lakes. Worldwide spending on big data and business analytics (BDA) solutions is forecast to reach $215.7 billion in 2021 -- that's an increase of 10.1 percent over 2020, according to the latest worldwide market study by International Data Corporation (IDC). Moreover, BDA technology investment will likely gain momentum over the next five years as the global economy recovers from the COVID-19 pandemic. The compound annual growth rate (CAGR) for global BDA spending over the 2021-2025 forecast period will be 12.8 percent. Big Data Analytics Market Development "As executives seek solutions to enable better, faster decisions, we're seeing relatively healthy BDA spending across all industries. Leveraging data for insights into everything from internal business operations to the customer journey is top of mind and of strategic importance," said Jessica Goepfert, vice

Warehouse Robot Deployment Gains New Momentum

The retail and wholesale back-office infrastructure market is being transformed by technology. The warehousing industry has accelerated automation efforts due to the increased order volume and labor shortages driven by the global pandemic. In addition to technology solutions such as handheld devices with enhanced capabilities, autonomous, collaborative, and mobile robots are proving to be the fastest-growing productivity-enhancing solution in the warehouse workspace. Commercial Robotics Market Development According to the latest worldwide market study by ABI Research, global commercial robot revenue in warehouses will have a Compounded Annual Growth Rate (CAGR) of over 23 percent from 2021 to 2030 and exceed $51 billion by 2030. "Mobile robots are at the heart of the warehouse robotics market and account for most shipments and revenue. These robots, made up of Autonomous Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs), are being used to move goods within the warehouse a

Hybrid Work: How to Enhance Employee Productivity

When you hire qualified talent for a key role and trust them to perform, you'll likely achieve the best outcome. Skilled and experienced people will deliver results, regardless of the challenges. That's a key lesson learned from the pandemic experience as most knowledge workers were asked to work from their homes. However, some resist returning to an open-plan office. It's unacceptable. Meanwhile, forward-thinking leaders decided a "return to normal" is undesirable, and in hindsight, everyone should aspire to be more accomodating than before. Therefore, location flexibility is okay. Hybrid Workforce Market Development How will people adapt to these changes? They'll apply the modern IT tools at their disposal. They'll learn new skills and thrive. Nearly 80 percent of employees are now successfully using online collaboration tools for work in 2021 -- that's up from just over half of workers in 2019, according to the latest market study by Gartner. This g