Digital Lifescapes

Worldwide ownership of Connected TV Devices -- including smart TVs, smart blu-ray players, IP-enabled game consoles and digital media streamers -- grew 7 percent quarter-on-quarter in Q2 2014 and 34 percent versus the same period in 2013 to reach 500 million units. The growing demand for devices that facilitate the streaming of online video to the large screen TV is creating a highly competitive environment with no fewer than 16 major technology brands accounting for 90 percent of devices in use, according to the latest global market study by Strategy Analytics. Connected TV Devices fulfill a growing consumer desire to access over-the-top (OTT) video content on the big screen within the home. While Game Console vendors and the major TV brands have the largest footprint of such devices, other companies -- such as Apple, Google and Amazon -- are starting to build up a significant base of lower cost media streaming boxes and dongles from which they can tap into the online TV audienc...

Competition among the different video game platforms is increasingly fierce due to a couple of key reasons. First, new console hardware providers enter the market with their generally cheaper devices, while on the other hand gamers are offered a new means of playing via mobile phones. According to findings from the latest market study by Juniper Research , global revenues from PC and console video games will decline from $46.5 billion this year to $41 billion by 2019. The Juniper study reveals that despite the decreasing sales of console hardware and increasing significance of mobile platforms, PC and console video games will still account for over 50 percent of industry revenues over the next 5 years. Global revenues from software sales on both the PC and console platforms will remain relatively healthy, with PC video games software sales exceeding sales on the console platform. Juniper also found that the new generation of consoles will create a short-term uplift in video gam...

The digital video games industry has changed dramatically over the past decade. Historically, computers and game consoles were essentially the only devices to play games on. However, these devices have been supplemented by an array of alternative games channels in recent years. Many mobile devices -- such as smartphones and tablets -- can also be used to play various types of games, encouraging those who perhaps would not normally play games to now begin. By 2016, total revenues from mobile games will reach $28.9 billion – that's a growth of over 38 percent on the 2014 figure of $20.9 billion, according to the latest market study by Juniper Research . The study findings highlight that in an effort to maximize their apps' potential, developers are turning their focus on increasing user lifetime value. The new study found that with the domination of casual gamers playing free-to-play games, the game developer's approach has shifted from bulk acquisition of unique play...

Spending on video game hardware grew 47 percent to $983 million during the first quarter of 2014, but overall total industry consumer spending on video gaming fell 1 percent to $4.6 billion compared to the same period in 2013, according to the latest market study by NPD Group. The dramatic increase in hardware sales can be attributed to the new Xbox One and PlayStation 4 and these strong year-over-year trends are likely to continue through most of 2014, according to Liam Callahan, industry analyst at NPD Group . Overall video game content revenue was down 8 percent, due to a decline in new physical format spending of 27 percent or $372 million. In contrast to the physical declines, digital format spending collectively increased by 4 percent, driven by full game downloads and DLC for consoles and portables. For the first quarter of 2014, content spending increased for used games, digital full games, DLC, and mobile with a modest increase in subscription revenue. Callahan said,...

Demand for casual user online video games has grown significantly over the last few years, particularly on mobile devices -- such as smartphones and media tablets. Regardless, personal computer gaming is still in vogue with its loyal traditional fan-base. A recent digital gaming software and services forecast from International Data Corporation (IDC) concludes that PC and Mac gamer spending and direct banner/video advertising outlays -- across all digital channels -- will grow to over $24 billion worldwide by 2017. The forecast also found that global digital PC/Mac game revenue will rise about 4 percent per year between 2012 and 2017. North American digital PC/Mac gaming revenue, however, is forecast to slip at the margins over the forecast period. This market share slide is mainly the result of the cannibalization of casual-leaning, browser-centric games -- typified by Zynga's Farmville 2 -- by smartphones and tablets. The market share shift is also compounded by a stead...

The video game sector is constantly evolving to meet the expectations for product innovation. In a recent market study, Microsoft just beat out Sony for the top position in a game console competitive assessment -- based on expectations for the impact of Sony’s PS4 and Microsoft’s Xbox One game consoles. ABI Research evaluated a number of companies across three device categories: game consoles, smart set-top boxes, and TVs/Blu-ray players. Several factors were used to score each company based on two main axes of innovation and implementation. The assessment provides deep insight into consumer electronics ecosystems and modern video experiences in the connected home. Sony fell to second place in the game console assessment in part because key PlayStation 4 (PS4) differentiators -- such as cloud gaming -- are still untested and won’t be fully available at launch. Besides, Microsoft has shown more features on the broader entertainment front -- as an example, hybrid premium or over-th...

The video game sector is about to get interesting, once again, with the introduction of better technology. New game consoles from Microsoft and Sony will both ship in selected markets during the 2013 holiday season. The XBOX One and Sony PS4 appear evenly matched with content remaining as the primary means of differentiation. A number of new entrants to the fixed console market, such as Ouya, are ratcheting up the competitive field with pricing and gaming experiences intended to capture the non-core gamer segment of the marketplace. ABI Research expects cumulative shipments of 8th generation consoles from the big three to pass 133 million during the first 5 years on market -- that's compared to nearly 140 million 7th generation consoles over the same length of time. "With many of the casual gaming segment embracing mobile devices for gaming, without a shift in strategy and pricing the Wii U will likely fail to match the success of the Wii which will impact future console...

By 2017 there will be 64.1 billion games downloaded onto smartphones and tablet devices -- that's over 3 times the rate in 2012, which stood at 21 billion -- according to the latest market study by Juniper Research. This high rate of growth for games is being driven by the increasing number of free-to-play releases, more sophisticated devices, and the global adoption of smartphones. Juniper's study investigated why this growth in the number of games downloaded would be so staggering. It found that an increase in the number of sophisticated games -- which allow for truly multi-platform gameplay through the use of cloud technology -- meant that mobile would become the primary screen for gamers. Greater memory on devices would also mean consumers were able to download more games onto their phones and tablets. Another key point highlighted by the report is that tablet users are downloading over twice the amount of games onto their devices than smartphone users. ...

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 fr...

Mobile Network operators -- including Vodafone, O2, Telefonica, Verizon, AT&T and Sprint -- are putting significant resources into developing Machine to Machine (M2M) related business units. There is an increasing sophistication in how the market is viewed by all stakeholders, with after-market installation being replaced by embedded mobile strategies and SMART (Self-Monitoring, Analysis, and Reporting Technology) systems. Juniper Research forecasts that M2M will support total industry revenues of over $35 billion in 2016. They also predict that revenues from products and services delivered over embedded consumer electronics (CE) devices will reach $6.4 billion in 2014, as a key anchor for the evolving M2M sector within the mobile industry. According to their latest market study, eBook sales and subscriptions will be by far the most important service offered over cellular connected consumer electronics devices. While others have emerged, such as digital photo frames and ...

The freemium online games phenomenon has truly been a welcome distraction for some, but not the manufacturers of traditional game consoles and associated software titles. Hardcore gamers still prefer the superior game console experience, however other people may never graduate to that level of engagement. Overall game console shipments declined by over 30 percent year-over-year through the first half of 2012. Although these results do not signal the end of console gaming, they are surely an indication of a trend that will change the long-term market upside potential. The current seventh generation of consoles is in the twilight years of the usual life-cycle and penetration rates are mature, leaving less room for new growth. Hope for recovery of the market in late 2012 and early 2013 now rests largely on the next generation Nintendo Wii U -- with its tablet-like GamePad capabilities. According to the latest market study by ABI Research, Nintendo’s innovative TVii feature is also n...

Seventh generation video game console market penetration is highest in North America -- at just over 50 percent of TV households, at the end of 2011. That's followed by Western Europe with nearly 30 percent, the next closest is Asia Pacific at just over 3 percent, with Japan being a significant contributor. With the next generation of consoles around the corner (Nintendo Wii U will be first to market late 2012) the replacement cycle will start anew, with these three primary regions expected to consume the majority of units. "Some regions such as Latin America continue to see growth opportunity, but high prices, due to taxes and tariffs, still put a damper on expectations," said Michael Inouye, senior analyst at ABI Research . Other regions like Middle East and Africa have limited fixed broadband penetration which reduces the value proposition from features like multiplayer gaming, downloadable content, and services like over the top video. Other large markets -- ...

Connected TV penetration in North America and Western Europe will surge from just over 10 percent in 2011 to over 50 percent by 2017, according to the latest market study by ABI Research. Blu-ray disc player penetration is expected to have a similar progression, increasing from about 25 percent in Western Europe and North America in 2011 to over 76 percent by 2017 (standalone and game consoles included). Meanwhile, game console penetration rates by 2017 are only expected to pass 61 percent in North America and 46 percent in Western Europe -- with adoption rates significantly lower in other regions. There are four major connected video CE devices: Connected TVs, Blu-ray players, game consoles and Smart set-top boxes (STBs). Most CE manufacturers (notably, Samsung and LG) use a common platform for Connected TVs and Blu-ray players. Microsoft and Nintendo play only in the game console market, while Smart STB leaders Apple and Roku don’t compete in the other connected categories. ...

The total revenue for touch screen modules will reach $16 billion in 2012, and nearly double in six years, reaching $31.9 billion by 2018, according to the latest market study by NPD DisplaySearch. The market growth is being driven by increased demand from applications such as media tablets, smartphones, and emerging new notebook PCs. While the leading touch technology is projected capacitive touch, demand for other technologies is also on the rise. Touch screen penetration has rapidly increased in mobile phones, handheld games, and game consoles, as well as in tablet applications, which are forecast to collectively account for more than $13.6 billion in touch screen revenues this year. In addition, NPD DisplaySearch forecasts strong touch screen growth over the next several years driven by demand in larger display applications such as convertible or hybrid notebook PCs. Today, mobile phones are the biggest application for touch screens in terms of unit shipments, accounting f...

In the near future, gesture recognition technology will routinely add yet another dimension to human interactions with consumer electronic devices -- such as PCs, media tablets and smartphones. According to the latest market study by ABI Research , they now forecast that 600 million smartphones will be shipped with vision-based gesture recognition features in 2017. "Gesture recognition is a very exciting prospect, particularly for smartphones and tablets," says ABI Research senior analyst Josh Flood. Camera-based tracking for gesture recognition has actually been in use for some time. Leading video game consoles -- Microsoft’s Xbox and Sony’s PlayStation -- both have gesture recognition built-in; known as Kinect and PlayStation Eye respectively. These devices are in their seventh and eighth generation. However, several challenges remain for gesture recognition technology for mobile devices, including effectiveness of the technology in adverse light conditions, vari...

The video game industry is currently going through the next phase of its apparent ongoing evolution. That is, even since smartphones and media tablets became part of the market equation. According to the latest market study by ABI Research, over 38 million handheld gaming devices from Sony and Nintendo are expected to ship in 2013 -- that's significantly lower than the previous peak of 47 million units in 2008. Unit shipments following 2013 are expected to decline slightly, but dedicated handheld gaming devices are a sustainable niche, with forecasts relatively flat through 2017. Smartphone and media tablet use for gaming continues to expand, making the mobile gaming market an increasingly important companion to dedicated handheld gaming. "Mobile devices will compete with dedicated handheld gaming devices, but select consumer segments like core gamers and those individuals who do not want or have a smartphone or media tablet will still provide some demand," said ...

The adoption of over-the-top video services, such as Netflix and Hulu, has created a increasing demand for wireless connectivity that's built-in to the numerous related consumer electronics (CE) devices that are used within the home. Increasingly, home video entertainment devices such as digital HDTVs, Blu-ray players, game consoles, and all versions of pay-TV set-top boxes (STBs) are coming to the market Wi-Fi-enabled -- so that devices can connect to the web and to each other. According to the latest market study by NPD In-Stat, their research shows that the evolution of the home network will drive the number of in-home video WLAN-enabled video devices to approach 600 million in 2015. "Wi-Fi has moved from a nice-to-have feature to a must-have feature as it provides the connectivity necessary to support IP-based video content." says Frank Dickson, Vice President of Research at NPD In-Stat . It's important to note though that Wi-Fi is growing from being simp...