When Mintel last analysed this market in September 2006, the seventh-generation consoles Xbox 360 and Nintendo Wii were new to the market, with the PS3, beset by problems at the time, about to hit the market. At this time, no-one could have accurately predicted the impact that these consoles would have on gamers and non-gamers alike.

Prior to these consoles, household penetration struggled to rise above the magic 30% figure, and break out of the traditional male, 16-35 age group. However, the introduction of new software concepts in the handheld market (particularly Brain Training) and static console hardware (the Wii controller and Wii Fit) have seen an explosion in interest and participation that has propelled video games into the mainstream.

When Mintel last analysed this market in September 2006, the seventh-generation consoles Xbox 360 and Nintendo Wii were new to the market, with the PS3, beset by problems at the time, about to hit the market. At this time, no-one could have accurately predicted the impact that these consoles would have on gamers and non-gamers alike.

Prior to these consoles, household penetration struggled to rise above the magic 30% figure, and break out of the traditional male, 16-35 age group. However, the introduction of new software concepts in the handheld market (particularly Brain Training) and static console hardware (the Wii controller and Wii Fit) have seen an explosion in interest and participation that has propelled video games into the mainstream.

This report has a heavy focus on consumer analysis and the burgeoning console market and looks at the extraneous factors, both positive and negative, that have had an effect on the market, the strengths and weaknesses of a market going through a transformation, and attitudes towards video games. It also explores the hypothesis of ‘Hardcore versus casual video gamers: can manufacturers target both?’

Main report themes:

Is the video game market maintaining growth in a period of lower consumer spend?

What impact has the Nintendo Wii had on the consumer playing base?

Have static consoles further eroded PC gaming?

Has network gaming become a major driver in sales?

How concerned are consumers about the exposure of kids to games with adult themes?

What are the major barriers to video gaming?