Video Game Console Market size is projected to grow exponentially over the coming years driven by technological innovations and advancements, such as voice recognition, AR/VR, and gesture recognition, in audio & visual equipment. Consoles with various features, such as shock resistance and adaptive triggers, are gaining popularity among gamers. The advent of online and cloud gaming is supporting market growth.
Enthusiastic gamers prefer to play games through consoles and controllers to enhance their gaming experience. The advent of resource-intensive VR, AR, and mixed reality technologies at affordable prices will propel the video game console market. The growing 5G infrastructure development initiatives across various regions are expected to drive market growth. For instance, in April 2019, SK Telecom, Korea Telecom, and LG Uplus, prominent South Korea-based telecom providers, launched 5G mobile networks across the country.
The gaming industry is progressing from a service-centric economy to an experience-based economy that aims to improve customer satisfaction. New business models, such as pay-per-use, are also contributing to market growth. However, security & IP protection and piracy are hindering market growth.
The price of specialized gaming consoles, such as Xbox, varies from around USD 300 to USD 500. Spending on video game-oriented hardware has increased exponentially. For instance, prices of specialized gaming hardware, such as Xbox One and Nintendo’s Super NES Classic Edition, surged over 21% in 2018. The rising hardware requirements of high-end popular games, such as Fortnite, Ubisoft’s Far Cry 5, and Sony’s God of War, are forcing gamers to invest a substantial sum in gaming systems. The price of games has increased dramatically over the last five years. For instance, the base price of popular games, such as Call of Duty and Super Mario, starts from over USD 60. Special and limited editions of these high-end games cost even higher. The steep price of various popular high definition games is hindering their adoption among various price-sensitive gamers.
Based on type, the home console segment is estimated to grow over the forecast timeline. Technical advancements in home consoles, such as Play-station Virtual Reality (PSVR), are providing a different kind of gaming experience to consumers, which is very much close to reality. Consoles, such as Xbox One, are providing entertainment, such as online gaming and streaming of games, driving the growth of this market during the forecast period. The home consoles segment will be followed by the handheld consoles segment, which allows users to play high graphic games on handheld hybrid consoles without the need to be connected to screens.
Based on application, the residential application is anticipated to witness a substantial growth rate over the forecast timeline due to a rise in the trend of work from home. The changing audience consumption pattern and a rising number of gamers are expected to proliferate market growth.
Based on region, the Asia Pacific region is estimated to hold a significant video game console market share due to a surge in the number of online gamers across China, South Korea, India, and Japan. Prominent market players, such as Sony Corporation and Nintendo, are contributing to market growth. Several e-gaming tournaments, such as FIFA20 (PS4) and Tekken 7(PS4), are gaining popularity in the region, increasing the number of gamers. 5G advancements in countries including South Korea and China are proliferating market growth.
Major players operating in this industry include Sony Corporation, Microsoft Corporation, Nintendo Corporation, Nvidia Corporation, and Valve Corporation. Market players are focusing on strategic alliances and product innovations to strengthen their market position. For instance, in August 2019, Google launched Google Stadia, a cloud gaming platform, which will support market growth. In May 2020, Sony Corporation launched PS5 with an ultra-high-speed SSD, 3D audio, deeper immersion with support for haptic feedback, and adaptive triggers. New generation gaming consoles will further enhance immersive gaming experience.
Market, By Type
Market, By Application
The above information has been provided for the following regions and countries: