What you’ll learn from this report:
The console and TV-based games market continues to grow worldwide as the 8th gen console installed base reaches 130 million units. While the U.S. and Europe continue to remain strong console markets, developing markets, including those in Asia, have contributed to global console market revenue growth. China overturned its console ban in 2014, which led to both Sony and Microsoft officially launching consoles in the country.
China’s market for game consoles is often overlooked, because the revenue is much lower than for the key segments of PC Online Gaming and Mobile Gaming. Sony, Microsoft, domestic competitors, and others are active in China and sales have surpassed 3/4 of a billion dollars. Despite the barriers to entry, success is profitable.
PUBLISHED AUGUST 2018
- A comprehensive market model and 5-year forecast through 2022
- Qualitative and quantitative analysis on gamer demand, behavior, and usage for console and TV-based games
- Growth drivers and inhibitors
- Analysis includes legal and grey market consoles and games, domestic consoles, and OTT boxes
- Factors that console makers need to overcome in order to succeed in this niche market (compared to PC and mobile gaming in China) including cost, piracy, and government regulations.
- Analysis of our proprietary survey of 1,000 Chinese gamers regarding gaming behavior, demands, spending and more
- 40 pages
Key takeaways from the analysis:
- Total revenue for sales of game consoles, console game software and TV-based game software in China is projected to reach $736 million in 2018, up nearly 14.6% YoY as higher game software sales offset a slight decline in hardware sales.
- Niko projects 2018 console and TV-based games software revenue to reach $471 million, up 32% YoY. This comes from a tie ratio of approximately 10 legal and grey software titles sold per console this year, accelerated by the release of new popular titles. We forecast console and TV-based game software sales of $897 million in 2022.
- We project 2018 hardware revenue of $265 million, down 7% YoY. Our data includes legitimate and grey market (illegally imported) unit sales. The decline is primarily due to lower sales of grey consoles, which are partially offset by higher sales of legal consoles.
- We expect grey market hardware sales to generate $92 million in 2018, down 16% YoY. However, the decline in PlayStation 4 and Xbox One grey market consoles eventually, likely, will be offset by grey imports of Nintendo’s Switch.
- Grey market software dollar sales are expected to reach $268 million in 2018, up 25.4% YoY
- We anticipate 24.37 million gamers who play consoles and TV-based games by 2022, essentially doubling from 2018.
- Growth is driven in part by China’s 2014 reversal of the console ban, lower console prices, strong international game brands, the introduction of online gaming and distribution on consoles rendering piracy virtually non-existent on current gen consoles, and localization of international games for China.
- The majority of console and TV-based gamers surveyed by Niko Partners in 2018 declared they are spending more time playing games on consoles than last year.