Availability of games still the biggest driver of hardware choice amongst gamers, but how is this going to change in today’s digital world?

With console manufacturers increasingly shouting about accessories such as motion sensors, blu-ray drives, huge storage capacity for media and a variety of online options for their new hardware, it’s important to reflect on the key reason why consumers buy consoles in the first place.

A recent survey by GfK Technology indicated that the list of games they can access is still by far the biggest driver when deciding which console to purchase next – 73% cited the range of games as the most important feature in influencing their next console choice.*

With this in mind, we thought we’d take a quick look into the software side of video games and try to predict how things will develop in the short term. Having asked a series of dedicated gamers, here are our three favourite ideas:


1. Trading of digital games

A platform where gamers are able to buy, sell and trade digital games.  With digital games becoming more freely available (research by NPD shows that 20% of games are purchased digitally by online gamers)  through the likes of PlayStation or Xbox’s online store, but the price of games increasing, it seems inevitable that gamers are going to look for ways to share titles between them (similar to the large second-hand market in gaming stores across the land).   This may not seem like an appealing idea for software developers, but if it can happen in a tightly regulated environment with the software developers heavily involved, they can look to take a small percentage of any trade that takes place. This would mean the revenue from any games could be continually renewed, with the added benefit that it keeps the market fresh for gamers.

2. User generated games/ open marketplace

As an extension, a trading platform for games, could also be used for developers (be they small independent companies or a lone programmer in his bedroom) to develop and sell a wide array of new titles. Apple has already proved the success of a similar model with their App store. Such an approach would ensure that all niche gaming interests are catered for and developers can compete to come up with more innovative titles. The result? Gamers get access to the wide, continually updating range of games that they desire, while the owner of any such platform could again be rewarded from a small percentage of any sale.

3. Innovative gaming

Of course, the most important aspect must continue to be the quality of the games themselves. As Heavy Rain has so spectacularly shown, games can be designed with a specific target audience or interest group in mind, offering up a more ‘sophisticated’ experience, worlds apart from the instant thrills of a first person shooter.

And for developers, the inherent risk in developing such ‘different’ gaming propositions as Heavy Rain is, well, perhaps not such a risk any more. GfK’s study has shown that approximately 70% of UK households now have access to some sort of gaming platform; offering software houses a huge potential gaming audience from the dad on his interactive murder mystery movie title, the mum on the Wii-fit board, the teenage son on the first person shooter and the pre-school daughter with her first pet simulator.

Let’s hope that games such as Heavy Rain receive the success they deserve and that from a gamer’s perspective the game trading platforms and third party marketplace emerge as feasible business models. I know that I for one would encourage any developments in these areas.


*That list of drivers to purchase:

Most important features in influencing purchase decision when come to buy a new games console

  • Range of games available   - 73%
  • Brand of console manufacturer – 31%
  • Hard drive/storage for media such as films and music – 29%
  • Motion sensor accessories (e.g. accessories that recognise movement and allow you to control games with your body) – 27%
  • HD video playback/ Blu-ray player – 23%
  • Ability to download games directly to your console – 23%
  • An ability to play games online with others in different parts of the world – 22%
  • An easy web browsing service – 18%
  • Access to video on demand services over the internet (similar to BBC iPlayer) – 14%
  • Compatibility with 3D video content – 9%
  • Access to your favourite social networking services – 9%
  • Access to movie rental / download services – 9%

Research Info

*1000 online interviews were conducted by GfK NOP among a UK representative sample of internet users. The fieldwork was conducted between 15th – 19th February 2010

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The mainstream consumer generally opts for a device that integrates lots of functionality. If the ‘third device’ with greater functionality does take off, eBook readers will, more than likely, become a niche product.


I love the idea of an eBook reader especially one with an ‘always on’ 3G connection. The battery life is superb, lasting in many cases well over a week and the e-ink screens are almost essential for prolonged spells of reading. I like the idea of receiving my favourite newspaper and other magazine subscriptions directly to a device all ready for my morning commute.

However, my desire to own an eBook reader is not driven by a personal urge to carry around a library of novels.  It is actually for business purposes. I could make better use of my commute by catching up on the news and reviewing work documents. Indeed, having access to meeting documents or presentations on an eBook reader whilst travelling to a meeting would be highly convenient.

It’s encouraging for eBook readers that sales of them in the USA are supposedly strong. Barnes and Noble’s Nook quickly sold out and Amazon’s Kindle is their “number one best-selling” product on Amazon.com. However, no one is sure how many eBook readers have been sold due to the secrecy of the sales figures, particularly from Amazon. Now with the arrival of tablet PCs, especially Apple’s iPad, eBook readers face stiff competition.

As a result, I fear that interest in eBook readers will be limited to two types of users; business people and extreme reading enthusiasts. If there is a big uptake in consumer demand for a ‘third device’ (i.e. something that sits inbetween a smartphone and a laptop) then I believe that the large majority of people will opt for a device that has multiple uses.

We have already seen that those who have experienced the benefits of an iPhone (and its  seemingly unlimited uses) are highly interested in tablet PCs. Now that the dust has settled on the announcement of Apple’s iPad, many commentators believe its success will rely on the consumer being able to tailor the device to their own specific needs. Further to this, others are already excited at the new applications the iPad will enable.  One of my favourites is to use it as a board game.

The specialist nature of eBook readers seem to be reflected in interest levels among UK consumers. Prior to Apple’s announcement of their iPad, GfK Technology research showed that interest levels in eBook readers (23%) was half that of tablet PCs (45%). Perhaps not surprisingly, interest levels for eBook readers are higher among those who had recently bought either a physical newspaper or a book.

It is my view that the success of a product is highly dependent on the problem it solves or the demand it satisfies. History has shown that those devices that satisfy numerous need states naturally succeed, limiting specialist devices to a niche audience.

NOTES

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Research Info

*1000 online interviews were conducted by GfK NOP among a UK representative sample of internet users. The fieldwork was conducted between 15th – 19th January 2010

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