Analysis of World's Video Game Growth 2013 (part 2)
Continuing previous article, analysis of world's video game in this article will explain the growth of every segment.
Continuing previous article, analysis of world's video game in this article will explain the growth of every segment. This analysis also explains consumers' behavior which affects video game growth in the world. Twenty years ago, video game was still considered as children's game entertainment. Along with its growth, video game is now considered as entertainment for all age ranges which can be equalized with other entertainments like movies or music.
Video game's image changing shows that this media has had great market and accepted by many parties. This image transformation happens because of several factors, some of them are console Wii, PlayStation 3, Xbox 360 and of course tablet and smartphone. Wii succeeds to bring video game to family widely and offers various interactive game kinds for all age ranges. Meanwhile Xbox 360 and PlayStation 4 give entertainment more to teenagers and adults.
The greatest image transformation factor is done through tablet and smartphone. Thorugh communication media with very high penetration rate in these past three years, video game shows its entertainment form to general society. Nowadays, video game succeeds in becoming the ruler in application installed also in transaction amount on tablet and smartphone.
Society's familiarity towards video game creates willingness to do transaction on video game. In relatively low price because of short distribution mode, transaction rate in video game application are predicted to increase until 48.2% in next 2017.
In total, game application sales in tablet and smartphone on last 2013 reaches more than USD 13 trillion. This sale also includes premium game sale, sale in game alspo advertisement sale. Until next 2017, it is predicted that this segment's CAGR rate reaches 25.6%, the greatest number of all entire video game segment.
Sale in console game also occupies by software with great portion of game purchase. However the sale gap between software and hardware from year to year is predicted to be smaller. This happens because video game widely known by society will spread and become general entertainment device owned by society. Compound Annual Growth Rate (CAGR) of software sale on console game is predicted in 6.6% until 2017. That number is a lot smaller from hardware sale's CAGR rate projection until 2017, that is: 13,8%.
As mentioned before, handheld segment will decrease from year to year. This happens because of the competition with tablet and smartphone. Those two segments have the same function, that is mobile gaming. However with increasing specification and complex communication function, tablet and smartphone will keep reducing handheld market. CAGR handheld decrease in total is prejected will reach -22.5% until 2017.
Online and PC segment will be stable with relatively low growth. This happens because PC and online players amount which decrease from year to year. PC and online will become exclusive with small amount of players and fanatic on that game. That fanaticism later gives high revenue from item sale in the game.
Meanwhile, subscribing amount decrease happens because of society's surfeit towards MMORPG playing commitment. Ever since last 2011, online subscribe sale amount keeps decreasing. This decrease is projected will happen with stability with decreasing rate estimation is about -6.6%.
Video game player's growth is predicted to keep increasing with highest growth on tablet and smartphone segment. However, sales rate on tablet and smartphone is still under console segment. This happens because high commitment rate on console game so that it makes their AR PIU a lot higher if compared to gamer in tablet and smartphone.
And how about condition in Indonesia? Indonesia becomes one of best countries in Asia Pacific (emerging) to invest. This condition is formed because of high consort nature in society towards technology products. Population and economic stability also become supporting factors for investor to invest in Indonesian market. Other factor which also determines is very high internet user amount if compared with other South East countries.
Until now Indonesian video game market is occupied by online game with high revenue rate if compared with other segments' sales. Online game succeeds to occupy because the good distribution path has been formed both from client side and payment voucher. Meanwhile, other segment console, handheld also tablet and smartphone is still not as good as online.
Until now, console and handheld are still occupied by pirated game, so that sales revenue is mostly is on hardware sale. However this condition is predicted to change. Through the high population, stable society economy, also high consumption on technology devices, slowly society will choose more to play use original software. Various facilities offered also makes gamers not to be hesitant and change to original software.
Game revenue on tablet and smartphone is still low because of minimum transaction mode easy to do by society. It needs to know that only some parts of Indonesian society who have bank account. Among those amounts, only small parts who have credit card. From that amount, only small parts of society who are not hesitant to have online transaction or purchase in game application.
Payment mode becomes main obstacle on development in tablet and smartphone segments. However, this condition is predicted to change in next five years. The change happens not because of the increase of credit card ownership but because of local store increase or online application store which locally offers other payment methods.
Internet user growth will increase significantly annually, but it is predicted that sales on online segment will keep decreasing. This happens because of two conditions, online cafe market that will keep decreasing because users tend to play in the house instead of in online cafe, house gamer will become selective towards the games played. They will become more fanatic towards certain games and willing to do transaction in great amount. These two conditions will create tight competition among local game publishers to defend their position in society, form community, loyalty, and of course fanaticism.
Constant mobile user's growth also grows user amount in tablet and smartphone. Although nowadays ARPU gamer in this segment is still low, but with many users, publisher in Indonesia act as if it has been ready to focus in this segment. This is proven with some stores or distribution channels managed locally, like Gemstore, Lyto Mobi and Nampol. This store's advantage is of course from easy payment method. The weakness? it's in game collection which is more limited compared to Playstore or Appstore. Local store needs to cooperate with local developers so that these stores have their own uniqueness, that is different game collection. Because of the advantage in payment method, it is easy to follow. When Playstore and Appstore already have price in Rupiah rate (may are used in several items on those two stores) and have reliable payment method, local stores are easy to defeat.
As explained before, Indonesia is the most attractive country to become target in technology product investment, including video game. However Indonesia's closeness with game is not limites only in consumption but also production. With great amount of production house which has won many international awards, Indonesia has great potential to become king in his own country. To achieve that thing of course is not easy. Government support from regulation and protection sides, ecosystem and supportive competition, also reliable facility support must be owned.
Sumber: Gartner dan EIU