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Changing tech a reason for optimism - NPD
Changing tech a reason for optimism - NPD-April 2024
Apr 20, 2025 4:00 AM

  Who was there: NPD Group entertainment industry analyst Anita Frazier, who delivered a presentation titled "Entertainment in the Marketplace: A Snapshot of Consumer Behavior Today and Trends for the Near Term."

  Anita Frazier recaps NPD's latest findings. What they talked about: Frazier began her talk by comparing her social and entertainment experience at the age of 13 with that of her son Alex. Where she might have used pay phones, scheduled her evenings around a favorite TV show, and listened to albums, kids today have cell phones, digital video recorders, and online streaming services and might not even know what an album is.

  Consumer expectations are changing, Frazier said, and the expectation for connectivity and instant gratification with services like music-on-demand and communication-on-demand is tremendous. The advancing technology not only allows for that instant gratification, she said, but also opens the door for premium experiences, even ones that are personal and heartfelt in nature.

  Frazier referred to a recent study of entertainment trends among Americans over the age of 12, which indicated that watching movies and listening to music are still the top two leisure activities in the country. However, playing games was enjoyed by about 60 percent of the population, which she said is promising for the expansion of the market and proliferation of gaming platforms in the future. (For kids up through the age of 12, 57 percent are playing games, Frazier said.)

  Bolstering her point about instant gratification, Frazier noted that rental services like Netflix on-demand and Redbox DVD kiosks are up significantly more than the in-store experience, while media purchases have slowed down over the past few years. The situation is similar in the music industry, as Frazier noted that teens get downloadable or streaming music 21 percent more than they did a year ago, while physical CD sales to teens are down 27 percent.

  Bringing the talk back around to games, Frazier said NPD's research indicates that the fastest-growing platforms for players are social network games and mobile phone games, even if neither yet matches the prevalence of console gamers. While there's overlap between the crowds, Frazier stressed that social platforms are reaching new audiences that game makers should take into account. NPD data showed that 64 percent of gamers played on consoles, while 33 percent played on social networks, with 22 percent of gamers doing both.

  Frazier also talked about the prevalence of games as far as money spent on entertainment for children under the age of 15. Games account for more of that money than toys, music, and DVDs put together, according to NPD data, with software making up 22 percent of the money spent and hardware accounting for another 25 percent. For comparison, toys make up about 38 percent of the total money spent on entertainment for children.

  Looking forward to the rest of 2011, Frazier was optimistic about the industry's chances for growth. First and foremost, the improved economy will help bolster the value proposition of games. The growth of mobile devices like Apple's iOS line, digital distribution channels, broadband penetration, and advergaming were also cited as main factors pushing the industry forward this year. The advent of 3D technology like the 3DS and motion controls like Sony's PlayStation Move and Microsoft's Kinect will also drive new game sales as players adopt the hardware in greater numbers.

  Quote/takeaway: "These are audiences you need to know more about, because they're not necessarily the same people that you've been [targeting] in your marketing before."--Frazier on the new audiences.

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