{"id":68880,"date":"2014-09-18T13:54:57","date_gmt":"2014-09-18T11:54:57","guid":{"rendered":"http:\/\/mygaming.co.za\/news\/?p=68880"},"modified":"2014-09-18T13:56:01","modified_gmt":"2014-09-18T11:56:01","slug":"pc-gaming-dying-in-south-africa","status":"publish","type":"post","link":"https:\/\/mygaming.co.za\/news\/business\/68880-pc-gaming-dying-in-south-africa","title":{"rendered":"PC gaming dying in South Africa?"},"content":{"rendered":"<p>PwC recently released its 2014 &#8211; 2018 entertainment and media outlook report for South Africa, with a particular focus on the country&#8217;s gaming industry.<\/p>\n<p>According to the report, the SA video game market was worth R2.4 billion in 2013, up from R1.6 billion in 2009.<\/p>\n<p>A large chunk of this growth can be attributed to mobile gaming, which is expected to help grow the local market to R3.7 billion by 2018.<\/p>\n<p>&#8220;Video games in South Africa are seeing healthy growth and South African gamers are keen to learn more about upcoming games and technology. NAG magazine&#8217;s annual rAge expo catered to more 32,000 gamers in 2013 with over 2,100 bringing their own PCs for a 52-hour local area network (LAN) party,&#8221; said the report.<\/p>\n<h3 class=\"my-4\">PC Gaming numbers<\/h3>\n<p>PC gaming in the country, however, is set to decline over the next four years, according to the research.<\/p>\n<p>PC game revenue in SA is expected to drop from R402 million &#8211; its peak in 2012 &#8211; to R360 million by 2018. The reason for the decline, according to PwC, is that more people are playing &#8220;casual games&#8221; on their PCs via Facebook, combined with the continued prevalence of piracy in the industry.<\/p>\n<p>Steam and EA&#8217;s Origin are not letting the PC game market fall without a fight, though, and there has been a growth in digitally purchased PC games in SA.<\/p>\n<p>It is forecast that, by 2018, digital game purchases through platforms like Steam will make up 53% of all PC game revenue &#8211; finally surpassing physical game sales.<\/p>\n<p>This still falls short of the expected global average of 85%, though.<\/p>\n<div id=\"attachment_66593\" style=\"width: 610px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2014\/07\/PC-Gaming-Master-Race.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-66593\" class=\"wp-image-66593 size-full\" src=\"http:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2014\/07\/PC-Gaming-Master-Race.jpg\" alt=\"PC Gaming Master Race\" width=\"600\" height=\"200\" \/><\/a><p id=\"caption-attachment-66593\" class=\"wp-caption-text\">PC Gaming Master Race<\/p><\/div>\n<h3 class=\"my-4\">Online Gaming<\/h3>\n<p>The report also touched on the state of online gaming in SA, which is growing significantly &#8211; albeit from a small base &#8211; and is expected to continue this upward trend.<\/p>\n<p>&#8220;Online gaming spend will be the second fastest-growing segment at 12.5% annually, growing from R161 million in 2013 to an estimated R291 million in 2018,&#8221; said PwC.<\/p>\n<p>The reason for the &#8220;small base&#8221; was attributed to SA&#8217;s &#8220;immature broadband market&#8221;. PwC expects the number of citizens who have access to broadband to increase from 2013&#8217;s 1.4 million to 2.1 million by 2018.<\/p>\n<p>Leading the charge in the growth of online play are Guild Wars 2, The Elder Scrolls Online, and EVE Online.<\/p>\n<div id=\"attachment_60956\" style=\"width: 610px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2013\/12\/Elder-Scrolls-Online-8-.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-60956\" class=\"wp-image-60956 size-large\" src=\"http:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2013\/12\/Elder-Scrolls-Online-8--600x337.jpg\" alt=\"Elder Scrolls Online\" width=\"600\" height=\"337\" srcset=\"https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2013\/12\/Elder-Scrolls-Online-8--600x337.jpg 600w, https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2013\/12\/Elder-Scrolls-Online-8--267x150.jpg 267w, https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2013\/12\/Elder-Scrolls-Online-8--625x350.jpg 625w, https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2013\/12\/Elder-Scrolls-Online-8-.jpg 800w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><p id=\"caption-attachment-60956\" class=\"wp-caption-text\">Elder Scrolls Online<\/p><\/div>\n<h3 class=\"my-4\">Consoles and\u00a0Second-hand Games<\/h3>\n<p>The second-hand games market in SA is one of the smallest in the world, according to PwC, and is expected to stay static, or even decrease in the future.<\/p>\n<p>New consoles &#8211; PS4, Xbox One &#8211; are expected to offset this somewhat, but the &#8220;small installed base&#8221; in SA and the relative lack of next-gen games means this will take a few years to be felt.<\/p>\n<p>A barrier to entry for the Xbox One and PS4 in SA is the relatively expensive price of the consoles. In the U.S., for example, buying a PS4 represents a significantly smaller investment when compared to what we have to pay locally, and this drives people to hang onto their PS3s and Xbox 360s.<\/p>\n<p>One part of the report, which did seem questionable, was its claim that HD capable consoles and games are not a strong seller in SA due to the fact many &#8220;South African gamers will be still be using older standard definition TVs&#8221;.<\/p>\n<p>Maybe I need to check my privilege, but surely a 32-inch HD LCD is standard in most gamers&#8217; homes?<\/p>\n<p>SA&#8217;s lack of broadband access\u00a0was touched on again by PwC, which said the lack of connectivity motivated for the retention of the the last-gen consoles as they were not as reliant on high-speed Internet connections as their successors.<\/p>\n<p>PwC predicts that by 2018, 27% of console games will be downloaded digitally in SA, compared to the expected global average 37%.<\/p>\n<p>The physical game sales market fell slightly in 2012 and 2013, according to the report.<\/p>\n<div id=\"attachment_60010\" style=\"width: 610px\" class=\"wp-caption alignnone\"><a href=\"http:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2013\/11\/PS4-PlayStation-4-tear-down-3.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-60010\" class=\"size-large wp-image-60010\" src=\"http:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2013\/11\/PS4-PlayStation-4-tear-down-3-600x400.jpg\" alt=\"PlayStation 4\" width=\"600\" height=\"400\" srcset=\"https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2013\/11\/PS4-PlayStation-4-tear-down-3-600x400.jpg 600w, https:\/\/mygaming.co.za\/news\/wp-content\/uploads\/2013\/11\/PS4-PlayStation-4-tear-down-3.jpg 1000w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><p id=\"caption-attachment-60010\" class=\"wp-caption-text\">PlayStation 4<\/p><\/div>\n<h3 class=\"my-4\">Mobile Gaming<\/h3>\n<p>Mobile gaming continues to grow in SA, with games like Candy Crush Saga &#8211; which has been downloaded 500 million times world wide &#8211; still finding its way onto smartphones and tablets.<\/p>\n<p>Despite this popularity, monetizing social and casual games can prove difficult, said PwC.<\/p>\n<p>Mobile game spending is expected to grow from R858 million in 2013 to R1.5 billion in 2018. (Can&#8217;t be <em>that<\/em> difficult to monetize, it would seem.)<\/p>\n<h3 class=\"my-4\">More gaming news<\/h3>\n<p><strong><a href=\"http:\/\/mygaming.co.za\/news\/features\/68810-the-evil-within-pre-order-price-roundup.html\">The Evil Within pre-order price roundup<\/a><\/strong><\/p>\n<p><strong><a href=\"http:\/\/mygaming.co.za\/news\/features\/68748-best-selling-pc-ps-xbox-games-in-south-africa.html\">Best-selling PC, PS, Xbox games in South Africa<\/a><\/strong><\/p>\n<p><strong><a href=\"http:\/\/mygaming.co.za\/news\/features\/68708-middle-earth-shadow-of-mordor-pre-order-pricing-pc-requirements.html\">Middle-earth: Shadow of Mordor pre-order pricing, PC requirements<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PwC has released its South African entertainment and media outlook 2014 &#8211; 2018 report &#8211; here&#8217;s what it had to say about gaming<\/p>\n","protected":false},"author":214,"featured_media":48202,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_enabled":true,"_sma_x_custom_text":"","_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[2],"tags":[12971,21,11298],"class_list":["post-68880","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-gaming-report","tag-headline","tag-pwc-report"],"_links":{"self":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts\/68880","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/users\/214"}],"replies":[{"embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/comments?post=68880"}],"version-history":[{"count":1,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts\/68880\/revisions"}],"predecessor-version":[{"id":68885,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/posts\/68880\/revisions\/68885"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/media\/48202"}],"wp:attachment":[{"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/media?parent=68880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/categories?post=68880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mygaming.co.za\/news\/wp-json\/wp\/v2\/tags?post=68880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}