Video Games in the Cloud - A Disintermediated Video Game Industry
This study focuses on all market segments of the video game industry impacted by the dematerialisation of distribution, specifically: home and handheld consoles, PCs (including laptops), mobile devices (smartphones, phablets & tablets) and TV sets. This report aims to measure the degree of dematerialisation affecting distribution in each of the market segments above, independently of the technology used. We take into account services carried out by key players on
Digitisation, a driver for disintermediation and growth in the video games sector
The global video game software market rose in value from 35.3 billion EUR in 2008 to 47.7 billion EUR in 2014, driven by digitisation, the emergence of new segments and the continued success of relatively new segments. Digitisation has meant an increasing number of consumers can be reached, on any platform equipped with a screen, fixed or mobile, and with increasingly varied content. In 2014, 69% of video game software revenues were generated by digital sales and distribution, compared with 22% in 2008. Revenues from digitisation have experienced an average annual growth of 26.8% over the period, compared with 9.7% for revenues from physical sales.
- Consoles: Microsoft, Nintendo & Sony for instance
- PCs: Steam, GOG and similar competitors
- Connected TVs through STBs, Pay-TV interfaces or as a 'stand-alone-service'
Digitisation, a driver for disintermediation and growth in the video games sector
The global video game software market rose in value from 35.3 billion EUR in 2008 to 47.7 billion EUR in 2014, driven by digitisation, the emergence of new segments and the continued success of relatively new segments. Digitisation has meant an increasing number of consumers can be reached, on any platform equipped with a screen, fixed or mobile, and with increasingly varied content. In 2014, 69% of video game software revenues were generated by digital sales and distribution, compared with 22% in 2008. Revenues from digitisation have experienced an average annual growth of 26.8% over the period, compared with 9.7% for revenues from physical sales.
1. EXECUTIVE SUMMARY
2. METHODOLOGY & DEFINITIONS
2.1. General methodology of IDATE's reports
2.2. Market assessment and forecasts
3. DEMATERIALISATION OF THE VIDEO GAME INDUSTRY
3.1. The global market
3.2. The market by segment
4. STRATEGY AND ORGANISATION
4.1. Distribution and game services on desktop computers, pioneers of dematerialisation
4.1.1. Digital distribution websites are diversifying
4.1.2. Massively multiplayer games: a new phenomenon
4.1.3. Social games
4.1.4. Value chain and business models
4.2. Consoles in the cloud era
4.2.1. Digital distribution already used for AAA games
4.2.2. Cloud gaming on consoles is emerging and will establish itself in the long term
4.2.3. Consoles embracing online, in-game and beyond
4.2.4. The role of home consoles in the digital home
4.2.5. Home console services beyond video games
4.3. The emergence of the mobile games segment
4.3.1. Transformation of the value chain and business models
4.3.2. Impact on the sector's industrial organisation
4.3.3. Some underlying industry trends
4.4. On-demand or cloud gaming, the future of gaming
4.4.1. Transformation of the value chain and business models
4.4.2. Impact on the sector's industry organisation
4.4.3. Some underlying industry trends
5. REVENUE CHANGES AND FORECASTS ALONG THE VALUE CHAIN
5.1. Market forecasts
5.1.1. How global video game software market revenues are evolving
5.1.2. Console gaming revenues
5.1.3. PC gaming revenues
5.1.4. Mobile gaming revenues
5.1.5. TV video games
5.2. Market value distribution along the chain
5.2.1. Value distribution in the console gaming market segment (home and handheld consoles)
5.2.2. Value distribution in the PC gaming market segment
5.2.3. Value distribution in the mobile gaming market segment (smartphones and tablets)
5.2.4. Value distribution in the smart TV gaming market segment
2. METHODOLOGY & DEFINITIONS
2.1. General methodology of IDATE's reports
2.2. Market assessment and forecasts
3. DEMATERIALISATION OF THE VIDEO GAME INDUSTRY
3.1. The global market
3.2. The market by segment
4. STRATEGY AND ORGANISATION
4.1. Distribution and game services on desktop computers, pioneers of dematerialisation
4.1.1. Digital distribution websites are diversifying
4.1.2. Massively multiplayer games: a new phenomenon
4.1.3. Social games
4.1.4. Value chain and business models
4.2. Consoles in the cloud era
4.2.1. Digital distribution already used for AAA games
4.2.2. Cloud gaming on consoles is emerging and will establish itself in the long term
4.2.3. Consoles embracing online, in-game and beyond
4.2.4. The role of home consoles in the digital home
4.2.5. Home console services beyond video games
4.3. The emergence of the mobile games segment
4.3.1. Transformation of the value chain and business models
4.3.2. Impact on the sector's industrial organisation
4.3.3. Some underlying industry trends
4.4. On-demand or cloud gaming, the future of gaming
4.4.1. Transformation of the value chain and business models
4.4.2. Impact on the sector's industry organisation
4.4.3. Some underlying industry trends
5. REVENUE CHANGES AND FORECASTS ALONG THE VALUE CHAIN
5.1. Market forecasts
5.1.1. How global video game software market revenues are evolving
5.1.2. Console gaming revenues
5.1.3. PC gaming revenues
5.1.4. Mobile gaming revenues
5.1.5. TV video games
5.2. Market value distribution along the chain
5.2.1. Value distribution in the console gaming market segment (home and handheld consoles)
5.2.2. Value distribution in the PC gaming market segment
5.2.3. Value distribution in the mobile gaming market segment (smartphones and tablets)
5.2.4. Value distribution in the smart TV gaming market segment
TABLES & FIGURES
Table 1: Top 25 video game distribution websites, based on number of visitors
Table 3: Top 10 game publishers on Facebook
Table 2: Top 25 Facebook games based on MAU (Monthly Average Users), April 2015
Table 4: Comparison of the Xbox One's and PS4's DVR features
Table 5: Installed base of digital home equipment
Table 6: TV, video and game services on entertainment devices
Table 7: Applications other than video games available on home consoles, May 2015
Table 8: Top 10 mobile game publishers on iOS, April 2014
Table 9: Top 10 mobile game publishers on Android, April 2014
Table 10: The major mobile gaming social platforms
Table 11: Partnerships between the main GoDPs and ISPs
Table 12: Partnerships between the main GoDPs and connected devices
Table 13: Overview of the different video game services offered by ISPs
Table 14: Revenues along the console gaming market value chain, 2015–2019
Table 15: Revenues along the PC gaming market value chain
Table 16: Revenues along the mobile gaming market value chain
Table 17: Revenues along the Smart TV gaming market value chain
Figure 1: Video game software market, 2008–2014
Figure 2: Video game software market by segment, 2008 and 2014
Figure 3: Breakdown of the video game software market by type of revenue, 2008 and 2014
Figure 4: Breakdown of game software market by type of revenue and geographic region, 2014
Figure 5: Console gaming software market, 2008–2014
Figure 6: Breakdown of the console gaming market by type of revenue, 2008 and 2014
Figure 7: PC gaming market, 2008–2014
Figure 8: Breakdown of the PC gaming market by type of revenue, 2008 and 2014
Figure 9: Mobile gaming market, 2008–2014
Figure 10: TV video game software market, 2008-2014
Figure 11: Breakdown of online video game revenues, 2015
Figure 12: SmileGate's revenue growth
Figure 13: Top 10 massively multiplayer online games (MMOs) based on revenues generated, 2014
Figure 14: Global distribution of social networks, December 2014
Figure 15: Value chains for PC gaming
Figure 17: Share of digital entertainment devices in terms of installed base, 2015 and 2018
Figure 19: Home console value chain
Figure 20: Mobile game value chain before the first iPhone launched in 2007
Figure 21: Current mobile game value chain
Figure 22: Apple's revenue growth, 2001–2014
Figure 23: Breakdown of Apple's revenue growth, 2003–2014
Figure 24: Global mobile game revenue growth, 2000–2014
Figure 25: Share of Apple Store revenues generated by Free-to-Play apps, January 2012 – January 2014
Figure 26: Mobile gaming revenue distribution, 2008–2015
Figure 27: Mobile gaming revenue distribution, 2008 and 2015
Figure 28: Market share of the top five smartphone manufacturers in volume, 2013–2014
Figure 29: Market share of the top five tablet manufacturers in volume, 2013–2014
Figure 30: Share of mobile game users playing on tablets and smartphones
Figure 31: Market share in volume of tablet and smartphone operating systems, 2013
Figure 32: Number of apps available from major app stores, July 2014
Figure 33: Share of video games in total downloads and revenues generated on Apple's App Store and Google Play
Figure 34: Comparison of the number of app downloads and revenue generated on Apple's App Store and Google Play, Q3 2014
Figure 35: The TV gaming value chain - subscription to a satellite TV service
Figure 36: The IPTV video game value chain
Figure 37: The OTT video game value chain
Figure 38: Smart TV gaming revenue distribution, in value, 2008–2015
Figure 39: Smart TV gaming revenue distribution, 2011 and 2015
Figure 40: Global connectable TV sales, 2010–2015
Figure 41: LCD TV manufacturers' market share in terms of volume, 2013
Figure 42: Breakdown of connectable TV installed base, 2014
Figure 43: Video game software market, 2015–2019
Figure 44: Video game software market by segment, 2015 and 2019
Figure 45: Breakdown of the video game software market by type of revenue, 2015 and 2019
Figure 46: Console gaming software market, 2015-2019
Figure 47: Breakdown of the console gaming market by type of revenue, 2015 and 2019
Figure 48: PC gaming market, 2015–2019
Figure 49: Breakdown of the PC gaming market by type of revenue, 2015 and 2019
Figure 50: Mobile gaming market, 2015-2019
Figure 51: TV gaming market, 2015–2019
Figure 52: Revenues earned by the various links in the video game market value chain, 2008–2019
Figure 53: Revenue distribution of the various links in the video game market value chain, 2008–2019
Figure 54: Revenues along the console gaming market value chain, 2011–2018
Figure 55: Revenues along the PC gaming market value chain
Figure 56: Revenues along the mobile gaming market value chain
Figure 57: Revenues along the Smart TV gaming market value chain
Table 1: Top 25 video game distribution websites, based on number of visitors
Table 3: Top 10 game publishers on Facebook
Table 2: Top 25 Facebook games based on MAU (Monthly Average Users), April 2015
Table 4: Comparison of the Xbox One's and PS4's DVR features
Table 5: Installed base of digital home equipment
Table 6: TV, video and game services on entertainment devices
Table 7: Applications other than video games available on home consoles, May 2015
Table 8: Top 10 mobile game publishers on iOS, April 2014
Table 9: Top 10 mobile game publishers on Android, April 2014
Table 10: The major mobile gaming social platforms
Table 11: Partnerships between the main GoDPs and ISPs
Table 12: Partnerships between the main GoDPs and connected devices
Table 13: Overview of the different video game services offered by ISPs
Table 14: Revenues along the console gaming market value chain, 2015–2019
Table 15: Revenues along the PC gaming market value chain
Table 16: Revenues along the mobile gaming market value chain
Table 17: Revenues along the Smart TV gaming market value chain
Figure 1: Video game software market, 2008–2014
Figure 2: Video game software market by segment, 2008 and 2014
Figure 3: Breakdown of the video game software market by type of revenue, 2008 and 2014
Figure 4: Breakdown of game software market by type of revenue and geographic region, 2014
Figure 5: Console gaming software market, 2008–2014
Figure 6: Breakdown of the console gaming market by type of revenue, 2008 and 2014
Figure 7: PC gaming market, 2008–2014
Figure 8: Breakdown of the PC gaming market by type of revenue, 2008 and 2014
Figure 9: Mobile gaming market, 2008–2014
Figure 10: TV video game software market, 2008-2014
Figure 11: Breakdown of online video game revenues, 2015
Figure 12: SmileGate's revenue growth
Figure 13: Top 10 massively multiplayer online games (MMOs) based on revenues generated, 2014
Figure 14: Global distribution of social networks, December 2014
Figure 15: Value chains for PC gaming
Figure 17: Share of digital entertainment devices in terms of installed base, 2015 and 2018
Figure 19: Home console value chain
Figure 20: Mobile game value chain before the first iPhone launched in 2007
Figure 21: Current mobile game value chain
Figure 22: Apple's revenue growth, 2001–2014
Figure 23: Breakdown of Apple's revenue growth, 2003–2014
Figure 24: Global mobile game revenue growth, 2000–2014
Figure 25: Share of Apple Store revenues generated by Free-to-Play apps, January 2012 – January 2014
Figure 26: Mobile gaming revenue distribution, 2008–2015
Figure 27: Mobile gaming revenue distribution, 2008 and 2015
Figure 28: Market share of the top five smartphone manufacturers in volume, 2013–2014
Figure 29: Market share of the top five tablet manufacturers in volume, 2013–2014
Figure 30: Share of mobile game users playing on tablets and smartphones
Figure 31: Market share in volume of tablet and smartphone operating systems, 2013
Figure 32: Number of apps available from major app stores, July 2014
Figure 33: Share of video games in total downloads and revenues generated on Apple's App Store and Google Play
Figure 34: Comparison of the number of app downloads and revenue generated on Apple's App Store and Google Play, Q3 2014
Figure 35: The TV gaming value chain - subscription to a satellite TV service
Figure 36: The IPTV video game value chain
Figure 37: The OTT video game value chain
Figure 38: Smart TV gaming revenue distribution, in value, 2008–2015
Figure 39: Smart TV gaming revenue distribution, 2011 and 2015
Figure 40: Global connectable TV sales, 2010–2015
Figure 41: LCD TV manufacturers' market share in terms of volume, 2013
Figure 42: Breakdown of connectable TV installed base, 2014
Figure 43: Video game software market, 2015–2019
Figure 44: Video game software market by segment, 2015 and 2019
Figure 45: Breakdown of the video game software market by type of revenue, 2015 and 2019
Figure 46: Console gaming software market, 2015-2019
Figure 47: Breakdown of the console gaming market by type of revenue, 2015 and 2019
Figure 48: PC gaming market, 2015–2019
Figure 49: Breakdown of the PC gaming market by type of revenue, 2015 and 2019
Figure 50: Mobile gaming market, 2015-2019
Figure 51: TV gaming market, 2015–2019
Figure 52: Revenues earned by the various links in the video game market value chain, 2008–2019
Figure 53: Revenue distribution of the various links in the video game market value chain, 2008–2019
Figure 54: Revenues along the console gaming market value chain, 2011–2018
Figure 55: Revenues along the PC gaming market value chain
Figure 56: Revenues along the mobile gaming market value chain
Figure 57: Revenues along the Smart TV gaming market value chain
