SA's console video gaming market is set to catch up to more mature markets with professional services firm PricewhitehouseCoopers (PwC) anticipating that game spending in this platform will reach R1 billion by 2015.
Commenting on the firm's video games report findings, Charles Stuart, social director for technology, information, communication and entertainment media at PwC, believes that the future of the console market will be heavily influenced by the highly anticipated next-generation devices from industry leaders such as Sony and Microsoft.
"Assuming that the launches are supported by a strong portfolio of titles and additional services, a further boost to the console sector is likely, he says. "In SA, the overall video games market grew 1.2% in 2010 to R1.2 billion. This market consists of consumer spending on console games (including titles for hand-held systems, PC games, online games, mobile gaming, as well as video game advertising, but excludes spending on the hardware used to play the games."
Stuart points out that Sony's PS4 is bound to be cheaper at launch than the PS3, the high sales tag of which has been blamed for its failure to outsell the PS2. An added advantage, he says, is that this platform comes with strong social media features, enabling gamers to stream gameplay to friends as well as upload it to social networks.
"The console makers have opted for different strategies in the launch of their products, as Sony and Nintendo placed emphasis on the gaming credentials of their consoles, while Microsoft focused more on its console being a multimedia device," says Stuart, adding that the market's reaction to the different approaches is yet to be seen.
Vicky Myburgh, head of entertainment and media at PwC, notes, however, that as less avid gamers get hold of consoles, the number of games they buy will be lower than that of keen early adopters.
"Additionally, late in the console life cycle, there is a huge range of classic games available at budget prices, not to mention the vibrant second-hand games market. This means that while the volume of sales may be higher, the overall value of the market maybe static or even decrease."
She adds that while we have seen these trends unfold globally, SA's game console market, unlike many western European or North American markets, hasn't seen a dip in the overall category spending.
Several factors such as older platforms like the PS2 having a longer shelf life in SA and remaining viable long after Western European gamers have moved on, contribute to this according to Myburgh. Also, while high-definition (HD) visuals are a key selling point of newer consoles, she states that many South African gamers are still using older standard-definition televisions and will therefore not benefit from HD visuals.
"South Africa's gaming growth is impressive, especially for a market of its size, the country's developers will be able to tap into the local tastes, play preferences and language options that traditional western developers will need to either buy or build from scratch," concludes Myburgh.
Share