Video game players are watching less television, with one fourth claiming their pastime cuts into their TV consumption and a further 18% say they plan to reduce their viewing in the coming year.
According to a new study released by Ziff Davis Media, time spent watching television among respondents declined from 18 hours per week to 16 hours.
The gaming market is growing in momentum. Research from GMI shows that 48% of video gamers in the US would like to spend more time playing video games, with 35% wanting to maintain the same level. Reducing their television consumption is one such way in which this can be achieved.
Meanwhile, the number of people in the US who play video games is forecast to reach 76.2 million in 2005, compared to 67.5 million in 2004, an increase of 11.4%.
Ziff Davis attributes this growth to the rise of new portable game units and reduced prices for older console systems, with 40% of respondents planning to buy a portable system in 2005.
Kagen Research predicts US video games to rise to $16 billion by 2007, up from $10 billion in 2004, a rise of 61% (see Advertisers Devise Ways To Cash In On Games Industry)
Advertisers want to cash in on this rapidly expanding market and analyst eMarketer claims that one such way to cash in is through in-game advertising, in which products are placed in games, in the background, in the hands of game characters, or elsewhere.
According to US research company PQ Media, advertisers will start to invest more in paid product placements in videograms and on the internet in order to take advantage of the gaming market.
Continental Research’s Spring 2005 Internet Report showed that out of the 6.6 million UK homes connected to the internet via broadband, 24% played computer games online (see Multi-Use Of Broadband By Consumers).
PricewaterhouseCoopers (PwC) predicts the global entertainment industry to rise at a compound annual growth rate (CAGR) of 7.3%, reaching $1.8 trillion in 2009, due to improved economic conditions and an advertising upswing (see Strong Growth For Entertainment Industry Led By Online Games).
PwC’s Global Entertainment and Media Outlook: 2005-2009 predicts new revenue streams, such as online and wireless video games, to account for a significant portion of total growth in global spending. Combined revenues are expected to rise to $73 billion by 2009, up from $11.4 billion in 2004.
Related Links
