Future of gaming: digital distribution to affect console demand

13 January 2013

While the future of gaming is unknown, one thing is for sure – it’s growing substantially.

Besides looking to flying cars and robotic assistants, the International Data Corporation (IDC) published a forecast which looks to the prospects of the gaming industry through to 2016.

The gaming forecast, explains that console manufacturers are under increased pressure by alternative platforms, as products are expected to be more than one-dimensional gaming consoles, and instead offer more digital and media usages.

“The console ecosystem is in a state of flux since these platforms need to support an ever-growing array of non-gaming features and services at the same time that game distribution and monetization is moving in a digital direction,” said Lewis Ward, research manager of IDC’s Gaming service.

“At the same time, it doesn’t appear that alternative platforms — set-top boxes from cable companies, Web-connected smart TVs, and so on — are positioned to materially disrupt the trajectory of the ‘big 3’ console OEMs in 2013 or 2014. Discs will remain the console game revenue mainstay for years to come.”

When looking to the demand for Sony and Microsoft’s next-gen consoles, the forecast is that demand will be approximately 25% lower than the current-gen was. This is said to be due to the effects of digital distribution taking its toll on traditional consoles.

Key takeaways from the new forecast include:

  • In December 2012, PS3 system shipments eclipsed the number of Xbox 360’s shipped worldwide, despite the PS3 launching a year later than the Xbox 360 (an estimated 77 million bundles versus approximately 76 million bundles shipped).
  • Nintendo’s Wii U will find an audience; global bundle shipments will exceed 50 million by year-end 2016.
  • The volume of packaged game discs shipped will decline an average of roughly 3% per year through 2016, as console spending shifts into digital channels.

More next-gen gaming news:

Xbox 720 specs leaked, rumour has it

Xbox Surface tablet in the works?

PS4 developer console powered by AMD

PS4′s specs similar to that of Xbox 720: reports

Sony Playstation 4 launching before next Xbox?

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  1. The Rich
    14.01.2013 at 10:48

    Am I the only person completely mystified by what this is all actually about? (not an attack on you Jeremy – more an attack on the nonsensical argument being fed to us by this IDC crowd) Here’s what I understand after reading the article twice:

    1. BE AFRAID nerds because next gen consoles are going to have to do more than just play games or they might lose market share!!
    2. But don’t worry because devices that can’t play games but can do everything else, are unlikely to affect console sales, so just relax, we got this.
    3. But FEAR YE because despite all this, console sales will STILL mysteriously be down by 25%!! We can’t tell you why, especially since we’ve just told you that the only possible threat to consoles is not really a threat at all and that their growth path will continue as expected.
    4. Oh and digital distribution of games, which can’t exist without consoles, will somehow decrease console sales?

    I just don’t understand.
    TL;DR: Less next-gen consoles will be sold, because more games will be available for them??!?!?!?

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