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Handheld Gaming Devices in Downward Spiral to Niche Status Thanks to Tablets and Mobile Devices
Scottsdale, Arizona - 07 Jun 2012
Over 38 million handheld gaming devices from Sony and Nintendo are expected to ship in 2013 –a maximum that is significantly lower than the previous peak of 47 million units in 2008. Unit shipments following 2013 are expected to decline slightly, but dedicated handheld gaming devices are a sustainable niche, with forecasts relatively flat through 2017. Smartphone and tablet use for gaming continues to expand, making the mobile gaming market an increasingly important companion to dedicated handheld gaming.
Senior analyst Michael Inouye comments, “Mobile devices will compete with dedicated handheld gaming devices, but select consumer segments like core gamers and those individuals who do not want or have a smartphone or tablet will still provide some demand. The addition of mobile gaming is not necessarily a zero sum situation; in fact, many feel there is plenty of room in the gaming market for both portable and mobile gaming.”
Following an initially strong 1Q 2011 launch, Nintendo’s 3DS experienced a far weaker second quarter, prompting the company to dramatically lower the price of the handheld (from ~$249 to ~$170). The lower price, with additional titles, spurred sales to over 15 million through the 2011 calendar year. In late 2011, Sony launched the Vita in Japan with a wider launch in February 2012 to decent sales, although the price might prove an issue for Sony as well, despite significantly more robust hardware.
Inouye adds, “The mobile and tablet markets have increased consumers’ price sensitivity. First party developers and key game franchises will be vital cogs for the industry in the future, since hardware alone is not going to cut it given the shorter upgrade cycles for mobile devices.” Recent announcements at E3 from Nintendo and Microsoft, coupled with past mobile-centric initiatives by Sony, make clear that mobile experiences will be integrated into “dedicated” gaming experiences (both console and portable).
ABI Research’s new report, “Portable Gaming Devices,” discusses the dedicated handheld gaming market and both the influence and competitive impact mobile devices are having on this market.
It is part of ABI Research’s Connected Home and Tablets, Netbooks & Mobile CE Research Services.
ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 40+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.