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Video Game News Market Consumption Uses ESSENTIAL VIDEO GAME NEWS MARKET CONSUMPTION USES OCTOBER 2016 1 EDITORIAL EDITORIAL This new issue of Essential Video As always, PGW will be an e-arena with Game News presents the annual results this year a hall dedicated to the biggest of GfK’s consumer survey for SELL, to international eSport competitions, an better understand the habits of the French opportunity to discover the PGW Art Gallery population, decode gamer expectations by ARTtitude, a unique bookshop and many and practices and continue to develop Paris new operators who are attending for the Games Week. This year we were particularly interested in the arrival of virtual reality, younger gamers. the interest of 15-24 year-olds for the video gaming industry and its businesses and Paris Games Week is also the place also French perception of eSport. This year we have created PGW Business, A stage for pop culture as a whole, the a forum for all those who are hoping to 7th edition of Paris Games Week invites work in the industry. Close to the Colleges you to discover the future of video gaming. & Courses area, PGW Business is built The show is taking over 80,000 square around presentations of colleges, talks by metres of the Paris Exhibition Centre at video game professionals and specialists Porte de Versailles, a 30% increase and photo exhibitions to present all the on last year. businesses which make our industry so rich and exciting... Every year, the show’s growth improves and enriches the experience offered to What if video gaming was designing gamers. They will discover technological tomorrow’s businesses? innovations like virtual reality, new products for the Christmas season and Enjoy the show! also new games for 2017 presented as Jean-Claude Ghinozzi exclusive previews by French and European Chairman of SELL manufacturers, publishers, accessory manufacturers and studios. For the 3rd consecutive year, Game Connection Europe will be held jointly with Paris Games Week. This international event helps nearly 3,000 developers, distributors, partners and customers. 2 CONTENTS CONTENTS CHAPTER 1 P. 4 › Understanding the video game market CHAPTER 2 P. 21 › Profiles of French gamers CHAPTER 3 P. 29 › A responsible industry CHAPTER 4 P. 35 › Paris Games Week CHAPTER 5 P. 39 › SELL ESSENTIAL VIDEO GAME NEWS is produced by the Union of Video Game Publishers (SELL). E consumption and use of the French video gaming industry. 3 CONTENTS CHAPTER 1 UNDERSTANDING THE VIDEO GAME MARKET 4 UNDERSTANDING THE VIDEO GAME MARKET GAMER NUMBERS DOUBLED IN ONLY 10 YEARS! The history of video gaming in France dates back to the 1980s. The last twenty years have seen the industry and how it is used change dramatically. Today it is the 2nd largest cultural industry behind books. Gaming has slowly become generalised, entering every French home. 29% 52% 2005 OF REGULAR 2016 OF REGULAR GAMERS GAMERS 35 % YEARS M:54 OLD 34 % YEARS 52 OF THE OLD POPULATION W:46% 32 YEARS OLD PERCENTAGE AVERAGE AGE MALE / FEMALE OF GAMERS OF GAMERS BREAKDOWN IN 2016 IN 2016 IN 2016 In the early 2000s, only 20% of the French population said they played video games, a large proportion being men with an average age of 21. 16 years later and one out of every two French people now say they play video games with almost equal sexual parity and an average age that extends way beyond 30. 5 Source: GfK 2005 Gamers Study and GfK/SELL 2016 Study UNDERSTANDING THE VIDEO GAME MARKET 2015 MARKET REPORT TURNOVER FRANCE +6% MARKET 2.87 GROWTH BILLION EUROS (PHYSICAL MARKET + VIRTUAL MARKET EXCLUDING HARDWARE AND ACCESSORIES GAMING PC) CONSOLES + SOFTWARE + ACCESSORIES + ONLINE + HANDHELD TOP 3 1.3 1.1 MILLIONS OF MILLIONS OF UNITS UNITS FIFA 16 CALL OF DUTY: BLACK OPS 3 FRANCE IS IN THE TOP 3 2 VIDEO GAMES BROKE THE BARRIER EUROPEAN MARKETS OF A MILLION UNITS SOLD IN 2015* (with England and Germany) FIFA 16: 1.3 million Call Of Duty: Black Ops 3: 1.1 million The 2nd most sold cultural product in France in 2015 was a video game: fifa 16 6 Sources: SELL estimation, using GfK panel data at end 2015 UNDERSTANDING THE VIDEO GAME MARKET CLOSE-UP: MARKET SEGMENTS 2015 Breakdown of turnover En millions of Euros 1593 1492 758 712 270 305 200 260 2014 2015 2014 2015 2014 2015 2014 2015 CONSOLES SOFTWARE HANDHELD ACCESSORIES (CONSOLE + PC, PHYSICAL + VIRTUAL) -6% +7% +30% +13% +9.5% TURNOVER FOR GLOBAL SOFTWARE MARKET (CONSOLE + PC + MOBILE, PHYSICAL + VIRTUAL) 7 Sources: SELL estimation, using GfK panel data at end 2015 UNDERSTANDING THE VIDEO GAME MARKET CLOSE-UP: MARKET SEGMENTS 2015 9% MOBILE SOFTWARE 12% VIRTUAL % PC SOFTWARE 25 CONSOLE HARDWARE % TURNOVER 2 FRANCE PHYSICAL PC SOFTWARE 2.87 BILLION 14% EUROS 10% VIRTUAL CONSOLE SOFTWARE ACCESSORIES CONSOLE 28% PHYSICAL CONSOLE SOFTWARE 46% 65% PHYSICAL CONSOLE RETAIL RETAIL SOFTWARE SOFTWARE 14% 14% MOBILE MOBILE % 40 % VIRTUAL 21 (PC+CONSOLE) PC 8 Sources: SELL estimation, using GfK panel data at end 2015 UNDERSTANDING THE VIDEO GAME MARKET THE CYCLE OF VIDEO GAMING CONSOLES Hardware + Software + Accessories PEAK OF GENERATION 7 PEAK OF GENERATION 6 PEAK OF GENERATION 5 PEAK OF GENERATION 4 1987198819891990 199119921993 1994 1995 1996 19971998 1999 2000 20012002 2003 2004 2005 2006 2007 2008 200920102011 2012 2013 2014 2015 4TH GENERATION 5TH GENERATION 6TH GENERATION 7TH GENERATION 8TH GENERATION THE VIDEO GAME CONSOLE MARKET OPERATES IN CYCLES. 9 Sources: SELL estimation, from GFK panel data at end 2015 UNDERSTANDING THE VIDEO GAME MARKET 20 YEARS OF CONSOLES 5TH GENERATION 1993 1993 1994 1995 Amiga CD32 Atari Jaguar 3DO Sega Saturn 1995 1997 1998 PlayStation Nintendo 64 Game Boy Color 6TH GENERATION 1999 2000 2001 2002 Sega Dreamcast PlayStation 2 Game Boy Advance Xbox 10 Sources: GfK UNDERSTANDING THE VIDEO GAME MARKET 20 YEARS OF CONSOLES 2002 2003 2003 2005 GameCube Game Boy Advance SP Nokia N-Gage Game Boy Micro 7TH GENERATION 2005 2005 2005 2006 Nintendo DS PSP Xbox 360 Nintendo Wii 2007 PlayStation 3 11 Sources: GfK UNDERSTANDING THE VIDEO GAME MARKET 20 YEARS OF CONSOLES 8TH GENERATION 2011 2012 2012 Nintendo 3DS PS Vita Nintendo Wii U 2013 2013 Xbox One PlayStation 4 12 Source: GfK UNDERSTANDING THE VIDEO GAME MARKET TRENDS AND INNOVATIONS A market in perpetual change GAMING EXPERIENCE AUGMENTED REALITY MULTISCREEN SMARTPHONE TABLET VIRTUAL REALITY SOCIAL INTERACTION GENERATION VOICE IMMERSION ONLINE AND MOTION CONTROL 8 BOX STREAMING E-SPORT CLOUD GAMING 13 UNDERSTANDING THE VIDEO GAME MARKET TRENDS AND INNOVATIONS Virtual reality focus OUT OF 10 OUT OF 7 FRENCH PEOPLE HAVE HEARD 6 OF VIRTUAL 1 FRENCH PEOPLE REALITY SAY THEY ARE “FULLY AWARE” % OF THE POSSIBILITIES 9 GENERATED BY OF FRENCH PEOPLE VR TECHNOLOGY HAVE ALREADY TESTED VIRTUAL REALITY DEVICES 49% SAY THEY WOULD LIKE TO TRY IT % % 19 21 THE POSSIBILITY REALISTIC GRAPHICS OF WATCHING 360° IN GAMES FILMS AND VIDEOS GAMER EXPECTATIONS 3% FOR VIRTUAL SURF THE WEB REALITY & SOCIAL MEDIA 33% AN IMMERSIVE & FLOWING EXPERIENCE 20% NOT INTERESTED IN VIRTUAL REALITY 4% TO BE ABLE TO PLAY WITH OTHER PEOPLE Sources: SELL / GFK "French public and Video gaming" survey 14 Based on 1,002 people aged between 10 and 65 / October 2016 UNDERSTANDING THE VIDEO GAME MARKET IMPROVING RECOGNITION OF ESPORTS IN FRANCE SEPTEMBER 2015: SELL proposes an amendment to the by Axelle Lemaire and intended to give electronic sports of the queue. JANUARY 2016: !"#$ Prime Minister Manuel Vallls launched a parliamentary mission under the auspices of the UDI Deputy Rudy Salles and the PS %GR! of video gaming competition in France. MARCH 2016: *$+%GR!F$ their interim report to Axelle Lemaire for the Law to be examined by the Senate. MAY 2016: +F$+ professional gamers. JUNE 2016: A joint Senate / National Assembly meeting is held D0 JULY 2016: The National Assembly adopts the law. SEPTEMBER 2016: The Senate unanimously approved the law on the Digital Republic. CREATION OF THE “FRANCE ESPORTS” ASSOCIATION: THE FIRST STEP TOWARDS A FEDERATION OF ESPORT AMATEURS AND PROFESSIONALS The main historical actors of eSport come together to create “France eSports”, a !"F=%!&The purpose of the association is to in the sector and to promote its development in a context of professionalism and structuring of the practices used in electronic sports. '()!!*#1!233+$4+568 9:6;3"9+3+"%:9#$5!<3+2=8 +$+G3<!2= 15 UNDERSTANDING THE VIDEO GAME MARKET FORECASTS FOR THE FRENCH VIDEO GAME INDUSTRY End of 2016 ECOSYSTEMS CONSOLES + PC GAMING + MOBILE, PHYSICAL + DIGITAL . 3 4 % BILLION +3 EUROS IN VALUE 16 Sources: SELL estimate, using GfK panel data UNDERSTANDING THE VIDEO GAME MARKET MARKET PERSPECTIVES 2016 End of 2016 PC GAMING CONSOLE (INCLUDING DIGITAL) ECOSYSTEM % MILLION % MILLION +6 EUROS +2 EUROS IN VALUE 847 IN VALUE 2.259 HARDWARE* HARDWARE* IN % IN % 383 VALUE 45 652 VALUE 29 MILLION MILLION EUROS +8% EUROS -8% OF CONSOLE OF CONSOLE ECOSYSTEM ECOSYSTEM TURNOVER TURNOVER SOFTWARE* (INCLUDING DIGITAL) SOFTWARE* (INCLUDING DIGITAL) IN % IN % 385 VALUE 46 1.298 VALUE 57 MILLION MILLION EUROS MARKET EUROS +8% OF CONSOLE OF CONSOLE ECOSYSTEM ECOSYSTEM TURNOVER TURNOVER ACCESSORIES* ACCESSORIES* IN % IN % 79 VALUE 9 310 VALUE 14 MILLION MILLION EUROS +34% EUROS +2% OF CONSOLE OF CONSOLE ECOSYSTEM ECOSYSTEM TURNOVER TURNOVER #$'()*+(#4 graphics cards) Accessories (mouse, keyboard, screen) for PC gaming 17 Sources: SELL estimate, using GfK panel data UNDERSTANDING THE VIDEO GAME MARKET THE VIDEO GAME ECOSYSTEM DESIGNERS VIDEO STUDIOSGAME PUBLISHERS DISTRIBUTORS 18 UNDERSTANDING THE VIDEO GAME MARKET BUSINESS MODELS The 3 business models of video gaming 2 DESIGN
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