4Mar/140

Next Gen Home Consoles: the Eighth and Final Generation?

MICHAUD Laurent 

Laurent Michaud
Head of Consumer Electronics & Digital Entertainment Practice 

 

 

By 2016, the segment of the home consoles share will increase to 42.6% of video game market total revenue, or 35 billion EUR.


Many are claiming that this will be the last generation for consoles as cloud computing and network technologies have shown that they could make console hardware obsolete. However, this is not going to happen in the next seven to eight years, which is the typical life cycle of a home console.

We have released our latest report, “Next Gen Consoles”, performed under our on-going monitoring service of the worldwide video games market. This report explores the technical specifications of the latest generation of home consoles, their features and the gaming and non-gaming services they deliver. It focuses on machines produced by Nintendo (Wii U), Sony (PlayStation 4) and Microsoft (Xbox One),recognised as the leading players in this still very lucrative market, and purveyors of the most spectacular gaming experiences.

Figure 1: Video game market worldwide by segment, 2013–2017 (Billion EUR)

World Videe Game market growth 2013-2017, by segments

Source: IDATE, December 2013

Console manufacturers and their publishing partners have already made the transition to dematerialization. This can be seen with the ability of next-gen consoles to use the cloud for content and data storage services, content streaming, multiplayer and social features and even remote gaming. Console manufacturers will eventually be offering their own cloud gaming offerings. In this context, console manufacturers will exploit second screens. These could be a tablet, smartphone or dedicated platform and could offer synchronous or asynchronous and complementary or substitutable use in terms of game experience.

Several 'social' features have also been added because social networks have proved to be important for the gaming experience and for revenues, as well as for loyalty. Console manufacturers have therefore integrated the ability to share game images and videos on social networks, such as Facebook and YouTube. As well as these new features, console manufacturers have retained and improved their gesture recognition devices and added or improved voice recognition.
The online services available to players generally require a paid subscription. While Sony and Nintendo offer some particularly attractive free services, Microsoft has made its online services paid only.

The catalogue of games available on each console, including exclusive games, is an important issue for hardcore gamers, who set the tone and trends in gaming. At launch, Microsoft was ahead of its competition in terms of volume of games available on physical and downloadable media.
However, according to NeoSeeker1, the trend was reversed in the weeks following launch.

Technical specifications can also distinguish one console from another. Although the Wii U is clearly behind its competitors in terms of graphics and processing power, its game library does not necessarily require high performance hardware. On the other hand, Sony and Microsoft are battling it out over the respective power of their machines, which is an important issue for early adopters.
Since the previous generation of consoles launched in the mid-2000s, there have been many new technological innovations. We have therefore seen many initiatives appear in the home console market segment, especially with regard to home mini-consoles. There are now a dozen challengers, including Valve/Steam, nVidia, Ouya, GameStick, eSfere, Razer Edge, Bluestacks and its Gamepop console, Green Throttle, and Mad Catz and its micro-console M.O.J.O. Few of these will see much success but the Steam console would be IDATE's favourite to take some market share.

While these new challengers are mainly focusing on video games, the three leading console manufacturers are continuing to position their devices as entertainment centers over and above gaming.

Video Game & Digital Entertainment Programme

VideoGameMini

Our Video Game & Digital Entertainment programme offers a unique watch service that tracks all video market segments, and provides users with data and analysis that draw on our own database, and on our series of reports and insights on the key issues shaping the video game industry:
The World Video Games market:
database and its analysis report
Cloud gaming
Social gaming
Mobile gaming
Next Gen Home consoles

More on Video Game Markets:

13Feb/140

Edito by Yves Gassot

GASSOT Yves
 
Yves Gassot

CEO, IDATE


Round-up for 2014

It’s hard, in the first editorial of the year, to avoid laying out the overriding themes that we expect to see play out over the next twelve months. But it is still too early for me to deliver a complete summary of the year gone by, which has become the much-anticipated task of our DigiWorld Yearbook.
You will also need to wait until the next Executive Note to find out the central topic selected for this year’s DigiWorld Summit (but you can already mark your calendars for November 18, 19 and 20).

What I can share with you, however, is our belief in the profound relevance of certain issues, by summarising three topics that we have chosen to explore in this year’s Collaborative Research Programme (CRP 2014). These are think tanks open to existing IDATE member companies and those wanting to join, who will work for close to a year with a dedicated team of our analysts on the following subjects:

Telecoms USA: model or counter-model?

Following thorough on the two projects carried out in Brussels in 2012 and 2013 on telcos’ new business models, and the new European policy options being considered, we will work to deepen our understanding of the specific points that explain the different directions being taken on either side of the Atlantic.

The internet of things: will everything be connected?

We are going to analyse the true potential of the internet of things, by taking account of the developments that need to occur in the technical environment, difficulties in generating income from both consumer objects and industry applications and, finally, governance and personal data ownership issues, with tie-ins to our 2013 think tank on personal data

What will tomorrow’s TV and video networks look like?

Here we are building on the 2013 Video as a Service think tank by exploring issues surrounding the future of television and video distribution networks, and by analysing long-term scenarios for the delivery of TV and video products, taking particular account of the cooperation and convergence between networks, i.e. hybridisation involving both fixed and cellular networks

Other topics may be added to the CRP. For instance, we are contemplating an ambitious project that aims to define what could be a comprehensive, metropolitan area-scale digital investment strategy, going beyond marketing clichés and segmented vertical approaches.

I can also tell you that the next issue of Communications & Strategies (DigiWorld Economic journal) will be published in March, and is shaping up to be a promising one. It will be devoted to scoring Europe’s telecommunications sector, and examining potentially clashing policies.
And, finally, a reminder that the best way to delve into the subjects that are consuming our teams is though the reports that we publish every month as part of our annual Market Research programme.

6Feb/140

New generation consoles born under a cloud sign

MICHAUD Laurent 

Laurent Michaud
Head of Consumer Electronics & Digital Entertainment Practice 

 

 

After having first been dependent on computing and display power to dazzle gamers, the success of home consoles was next shaped by innovation in consumer electronics and IT. Earlier generation consoles had adopted this prerequisite, and their manufacturers had innovated by outfitting them with a DVD and later a Blu-Ray or HD DVD player, an accelerometer and an inclinometer, gesture recognition capabilities and even, for Nintendo in the mid-90s, with a hard drive.

For this new generation of consoles – which came on the market from late 2012, starting with Nintendo’s Wii U, up to late 2013 with Sony’s PS4 and Microsoft’s Xbox One – innovation lies less in the technology than the software. It lies in services for the whole family, from VoD to gaming, by way of web browsing. And it lies in the gaming experience, opening it up to an array of social dimensions.

The cloud as a springboard for innovation

After the first announcements from console makers, aware of how much innovation influences the success of home consoles, but without imagining that innovation could be in a realm other than technological, financial analysts gave a rather tepid welcome to the latest generation of machine. Of course, this meant overlooking the fact that innovations on the service and user side of the equation are now growth drivers in and of themselves, and vital to Sony, Microsoft and Nintendo’s success. Knowing this also helps understand where companies seeking to rival these three titans – e.g. Valve/Steam, nVidia, Ouya, GameStick, eSfere, Razer Edge, Bluestacks and its Gamepop console, Green Throttle, Mad Catz and its MOJO micro-console, etc. – are coming from.

Consoles getting social

Consoles have become social creatures. Console makers are working to satisfy gamer expectations, which have been clearly expressed by the success of social networking sites and of game publishers like Zynga, King, 6Waves, Pretty Simple, EA… Their machines are now equipped with sharing, communication and linking features, which should help consoles capitalise on the viral effect of a game’s sudden huge surge in popularity, just as Facebook and the iTunes and Android app stores already do.

The companion screen, home consoles’ ubiquitous helper

Consoles will help promote the companion screen and ubiquitous gaming. We have already seen companion screen app initiatives in the realm of TV, introduced by broadcasters and ISPs. The video game sector’s manufacturers could easily give birth to a second generation of applications that link the TV with a tablet, smartphone or PC. The companion screen goes hand in hand with the growing ubiquity of content. It is on every gamer’s wishlist and will no doubt be ushered formally into the equation with this new generation of consoles.

Is the hard copy dead?

Next gen consoles have taken one step closer to the web in their clear and decisive positioning on solutions that use the cloud for storage and computing. These include services like remote control, game downloads, interacting with other gamers, rankings, challenges, VoD, etc. But a host of questions remain over console-makers’ and their partners’ desire to do away with hard copies entirely over the next six or seven years. All have no doubt thought long and hard about it. If we are seeing the first signs of it today, it is no doubt with a view to having full command of all-digital gaming by the end of this console generation’s lifespan. In any event, the transition needs to be considered in light of new HD picture formats. An ultra high definition picture will “weigh” four times what an HD picture does, but should benefit from significant progress in compression techniques, beyond the capacities of H265, and so be transmitted with ease over the networks.

5Dec/130

World Video Game Market

MICHAUD Laurent 

Laurent Michaud
Head of Consumer Electronics & Digital Entertainment Practice 

World Video Game Market:
Eight key trends to watch in 2014

IDATE delivers its future forecasts in the latest edition of its World Video Game Market report. Our specialists forecast an average 11% annual growth over the next four years, driving the global gaming market from €54 billion in 2013 to €82 billion in 2017.

IDATE predicts that the global video game market will continue to enjoy steady growth, for two reasons in particular:
• start of the life cycles of the latest generations of handheld and home consoles,
• remarkable growth of the games on mobile devices and online games segments.

Laurent Michaud, Head of IDATE’s Video Game Business and the report’s Project Manager, says, “growth will be significant up to 2015, after which it will begin to slow as new generation handheld and home consoles reach the end of their life cycle”.

World video game market by segment, 2013-2017 (million EUR)

World Video Game market

Source: IDATE, November 2013

Online and mobile platforms giving traditional gaming sectors a run for their money

This steady growth must not, however, obscure our view of the radical changes taking place in this market.

Traditional segments losing their influence…

• Home consoles will represent 40% of the total market in 2017 against 31% in 2013, an increase that can be explained by the deployment of new consoles. A segment nonetheless well below that of 2008, during the deployment phase of the previous generation (78%).

• Handheld consoles will experience a dramatic reduction in presence – generating only 13% of the global market in 2017 in contrast to 22% in 2013. They face increasingly strong competition from games on mobile terminals.

• Irreversible decline of offline gaming on personal computers.

…Due to the success of online computer games and handheld gaming

• An average annual growth of 11.4% for online gaming and 12.2% for mobile gaming for the period of 2013-2017 against 11.1% for the entire video games market.

• Online gaming on PC becomes the segment leader on the games software market from 2013.

• Handheld gaming uptake is due to the success of tablets, which enrich the playing experience thanks to their having a larger touch screen than that of smartphones.

World Video Game Markets: Eight key trends for 2014

IDATE analyses the latest developments in video games and has identified eight key trends that will shape the market in 2014:

1. The arrival of new home consoles fuels dynamic growth over the period 2013-2017

2. Moderate financial performances for traditional players compared to players in mobile and online gaming

3. Reduction of blockbusters, as they are more and more expensive to produce

4. Nearly two thirds of the income of the video games market comes from the dematerialisation of distribution and online payment practices

5. Transition to Free2Play (F2P)

6. Ubiquity takes hold for good

7. Video gaming and connected TV as a natural convergence

8. The tablet explosion

Video Game & Digital Entertainment Programme

VideoGameMini

Our Video Game & Digital Entertainment programme offers a unique watch service that tracks all video market segments, and provides users with data and analysis that draw on our own database, and on our series of reports and insights on the key issues shaping the video game industry:
The World Video Games market:
database and its analysis report
Cloud gaming
Social gaming
Mobile gaming
Next Gen Home consoles

More on Video Game Markets:

Filed under: Video Games No Comments
27Nov/13Off

[CR] Game Summit – DigiWorld Summit

DigiWorld Summit 2013 - The digital gold mines

Audrey GREL
Consultant at IDATE

Marché du jeu vidéo: tendances et enjeux

Selon l'IDATE, le marché mondial du jeu vidéo (marché des équipements compris) passera de 53.9 milliards EUR en 2013 à 82.1 milliards EUR en 2017 (+11.1% en moyenne par an). Deux raisons expliquent cette dynamique :

• début des cycles de vie des dernières générations de consoles portables et de consoles de salon;

• progression remarquable des segments de jeux sur terminaux nomades et de jeux en ligne.

La Game Summit Conference 2013, qui s'est tenue le 21 novembre dernier à Montpellier, a permis de dessiner les différentes tendances auxquelles devra faire face les différents segments de marché dans les prochaines années.

Retrouvez le programme et les intervenants du séminaire Game Summit Conference

Les consoles de salon dans la tourmente

L'IDATE estime que la nouvelle génération de consoles devrait connaître un rythme de croissance moins important que celui observé pour la précédente génération. Les consoles subissent en effet une concurrence de plus en plus vive issue des segments du jeu nomade et du jeu en ligne.

Évolution du marché des consoles de salon, 2001-2017 (millions EUR)

Source : IDATE d’après Industrie - Etude multiclients "Marché mondial du jeu vidéo" – Novembre 2013

Les consoles de salon font aujourd'hui face à des défis de taille pour s'adapter aux nouveaux usages des joueurs:

Financer davantage de jeux indépendants: La situation actuelle du jeu sur consoles de salon est comparable à celle que connut l'industrie du cinéma dans les années 80. Ce fut l'époque où le cinéma indépendant commença à s'imposer sur le marché face aux grands studios hollywoodiens, ces derniers n'ayant ainsi d'autre choix que de se lancer à leur tour dans la production de films indépendants. Pour Alexis JOLIS DESAUTELS, Game Director, Ubisoft Montréal, il est indispensable pour le jeu vidéo sur consoles de salon de financer davantage de jeux indépendants en sus des blockbusters, au risque de s'asphyxier.

Faire face à un environnement déflationniste: De par l'influence du segment du jeu sur mobile, les joueurs sont aujourd'hui familiarisés avec l'idée que les jeux vidéo peuvent être acquis gratuitement ou pour des sommes très peu élevées. Comment arriver dans cet environnement à ce que le consommateur perçoive la valeur d'un jeu AAA à 70 EUR? Il faut pour cela que les jeux sur consoles puissent durer en moyenne un an et demi. Il s'agit là d'un enjeu majeur de développement. "Challenge is how to create perceived value" (Alexis JOLIS DESAUTELS, Game Director, Ubisoft Montréal). Pour l'IDATE, le jeu sur consoles de salon doit également songer à faire évoluer son modèle économique pour se diriger vers le Free2Play.

Intégrer des composantes sociales: Le succès du jeu social montre l'intérêt des joueurs à jouer avec d'autres personnes. Aujourd'hui, 60% des joueurs jouent avec des personnes qu'ils connaissent. Il apparaît donc crucial aujourd'hui que les consoles de salon intègrent des composantes sociales.

Ne pas rester uniquement des appareils statiques sous le téléviseur: La prééminence des tablettes et des smartphones, le succès du jeu nomade, témoignent de l'intérêt des joueurs pour les appareils portables. Les joueurs veulent aujourd'hui payer pour quelque chose auquel ils peuvent accéder partout. Dans ce contexte, les consoles de salon doivent évoluer pour ne pas rester uniquement des appareils statiques sous le téléviseur. Pour l'IDATE, l'ubiquité offre là des perspectives intéressantes.

Enjeux économiques et technologiques des jeux ubiquitaires

Un jeu ubiquitaire offre la possibilité à un joueur de vivre une expérience ludique en continu sur plusieurs plateformes. Sur les différentes plateformes, les expériences peuvent être substituables ou complémentaires.

Caractéristiques des jeux ubiquitaires

Source : IDATE - 2013

Dans les jeux proposant des expériences substituables d'une plateforme à une autre, gameplay et business model sont répliqués à l'identique sur les différentes plateformes. La prochaine étape pour les éditeurs sera de les adapter aux spécificités de chaque plateforme ainsi qu'aux comportements des joueurs, qui s'avèrent différents d'une plateforme à une autre. Par exemple, Scimob, éditeur du jeu 94 secondes, a remarqué que les joueurs jouaient plus longtemps sur tablette que sur smartphone, et pense monétiser ce comportement en ajoutant un système d'attente sur tablette.

Dans les jeux ubiquitaires offrant des expériences complémentaires d'une plateforme à une autre, les applications "compagnon" peuvent être utilisées de manière synchrone ou asynchrone au jeu "principal". La synchronisation en temps réel laisse présager un fort potentiel ludique, néanmoins des progrès technologiques restent encore à faire afin de résoudre les problèmes de latence rencontrés aujourd'hui.

TV connectée et second écran: le potentiel du jeu vidéo comme outil d'engagement du téléspectateur dans les programmes audiovisuels

De plus en plus, les téléspectateurs utilisent un ou plusieurs écrans supplémentaires tout en regardant la télévision: ordinateurs, smartphones et tablettes, mais également liseuses numériques ou consoles de jeu. Que font-ils sur les seconds écrans? 53% effectuent des activités qui ne sont pas relatives aux programmes diffusés à la télévision: consultation de mails, recherche d'informations diverses, etc. Les 47% restants réalisent des tâches en relation directe avec le programme diffusé: recherche d'informations sur les acteurs, recherches d'informations relatives au programme, commentaires sur les réseaux sociaux, etc.

Part des téléspectateurs effectuant les activités considérées sur leur second écran

Source: The NPD Group, 2013

L'enjeu pour les chaînes de télévision est d'arriver à concevoir des interactions 2nd écran engageantes avec leurs programmes télévisuels, afin de préserver l'attention de leurs téléspectateurs et in fine leurs revenus publicitaires.

Selon Dean FOX, CEO, ScreenAngels, le jeu vidéo serait tout à fait à même de proposer ce type d'application: "Who can design and develop synchronized, multiscreen, interactive programming for TV and the second screen? We can". Il évoque à titre d'exemple le jeu Psychic Detective (EA), dans lequel le joueur doit mener une enquête policière. Associé à une série policière télévisuelle, ce type de jeu serait à même d'encourager le téléspectateur à suivre avec encore plus d'attention la série.

L'importance des analytics pour le développement des jeux en ligne et des jeux nomades

Dans le secteur du jeu en ligne et du jeu nomade, des outils spécifiques comme Flurry Analytics permettent de recueillir des statistiques sur le comportement des joueurs. Pour un éditeur/développeur, l'intérêt est de pouvoir comprendre le comportement des joueurs, de valider/corriger ses choix de développement rapidement ou encore de détecter les éventuelles frictions dans le jeu. Pour un éditeur/développeur, il est notamment intéressant de connaître: le comportement de l'ensemble des joueurs, exception faite de ceux nouvellement arrivés; le comportement des joueurs qui viennent de quitter le jeu et qui ne sont plus revenus; le comportement des joueurs-payeurs. Ainsi par ce biais, les joueurs font également partie du processus de développement d'un jeu.

DigiWorld Summit - du 19 au 21 Novembre 2013

Retrouvez les médias enrichis produits pendant la conférence :

12Nov/13Off

DigiWorld Summit – Digital Malls

DigiWorld Summit 2013 - The digital gold mines

Who will manage the “digital malls”?

The explosion in mobile Internet has been accompanied by the emergence of relatively distinct ecosystems that can be likened to 2-sided platforms. These exploit the related benefits of their potential to appeal both to Internet users and to providers of applications, content and products.

Discover Digital malls plenary session speakers!

DigiWorld Summit 2013 plenary session speakers

New players pursuing platform strategies

However, beyond the well-known models of mobile Internet giants such as Appstore and Google Play, other players are also pursuing platform strategies:

    Consumer electronics manufacturers are now producing a wide range of screen types (from smartphones to ultra High Definition TVs and tablets);

    Specialist pure players in the music, video and video games market (this may also soon extend to professional software as a result of possible polarisation caused by the Software as a Service (SaaS) model);

    A limited number of e-commerce giants;

    Social networks have to offer a range of internal applications and services to maximise connection time and also have platform strategies that are geared towards application providers;

    Telephone operators are moving beyond multi-play bundles to create an ecosystem that is trusted by both subscribers and providers.

DigiWorld Summit - Breakdown of the global video market

Source: docomo with IDATE's comments

Very different digital malls models

These models are very different. For some (such as Apple), content aggregation is primarily a means of selling smart devices; for others (such as Netflix), it lies at the heart of their business model, adds value to advertising deals (Facebook), helps them to stand out on the access market and combat customer churn (telephone operators).

Two main questions debated during the Digital malls session

The debate proposed for the ‘Digital Malls’ session could ultimately be structured around two main questions:

Which ecosystems seem best prepared for surviving and making their mark in polarising online consumers and applications?

To what extent is this way of structuring online traffic and services around more or less closed ecosystems linked to the development of the Internet (including, for example, work being done around HTML5)?

DigiWorld Summit - Digital malls Plenary Session (Nov. 21 - 9:00am)

More information about sessions, speakers, sponsors, partners and associate events on the DigiWorld Summit dedicated website:

DigiWorld Summit 2013 Website

7Oct/13Off

Nomad Gaming

MICHAUD Laurent 

Laurent Michaud
Head of Consumer Electronics & Digital Entertainment Practice 

Mobile gaming: A global market of
worth over €9 billion in 2016

The mobile gaming market has been flourishing every since its inception in the early 2000s. Growth has been steady from the start, and picked up in 2007 and 2010 – which is when Apple released its game-changers, namely the iPhone and the iPad backed by the iTunes store.

Evolution of global sales in the mobile games segment, 2000-2016 (Billion EUR)

Source: IDATE

Read the full infography on gamesummit.pro, the dedicated website for the Digiworld Summit 2013 Game Summit executive seminar.

The economics of gaming on mobile platforms are remarkably effective:

  • The catalogues are incomparable in terms of numbers: 150,000 games on the iTunes store, more than 110,000 on Google Play in mid-2013, versus more than 13,000 on Facebook and over 1,800 on Steam.
  • The games available on Google Play represent only 14% of applications in terms of volume, but 40% of downloads and 80% of revenue.
  • On average, and on the basis of the 20 most profitable games on the iTunes Store, the revenue generated over the lifespan of a game is close to $4 per player.
  • Some titles have generated truly impressive results: Puzzle & Dragons from GungHo earns $2.5 million a day, while Clash of Clans (SuperCell) takes in $2.4 million a day, including nearly $530,000 in the United States alone.

Game aggregators and player network managers such as Gree and Mobage are among the market’s top dogs. They are reporting remarkable results, especially Gree which earned roughly $1.6 billion in 2012 – although that figure includes more than just its gaming business.

There are also established mobile gaming companies like EA Mobile, Gameloft, Gamevil, GluMobile and G5 Game which have managed to launch their own app/game stores.

The market is populated too by new entrants whose arrival on the scene benefited the sale of the first smartphones attached to an app store: Rovio, SuperCell and Kabam. GungHo Online Entertainment came from the world of online gaming, as did Mojang which has managed to make Minecraft a huge hit on mobiles as well.

If more than half of all mobile games can still be considered casual games (i.e. puzzles, card games, word games, etc.), mobile gaming is in the throes of a major transition. This new way of playing games is opening up whole new vistas, new ways to dream and have fun. Innovations built into mobile platforms have enabled game designers to let loose their imaginations inside a new technological environment, and for new gaming universes to be born. Mobile gaming is bringing a new inventiveness to the cultural industry that extends well beyond gaming.

This analysis is an excerpt of our Nomad Gaming: A new era for video games? Market Insight which takes a look at the state of gaming on mobile paltforms in terms of technology, device shipments, usage and economics with market forecasts for 2016.

10Jul/13Off

Smart Home

MICHAUD LaurentLaurent Michaud
Head of Consumer Electronics & Digital Entertainment Practice at IDATE


Challenges of Consumer Electronics of Entertainment and Home automation

Despite tough economic times, the consumer electronics sector continues to deliver innovations, both technological and in the realm of usage, which have caught on with consumers. They have demonstrated, if not that value could shift to services and software, at the very least that the sector can rely on a new set of market dynamics in the medium term.

Consumers’ love of mobile devices, smartphones and tablets has not waned. According to IDATE, more than 1.5 billion smartphones and 470 million tablets will be sold in 2017, compared to just over 640 million and 114 million, respectively, in 2012. This popularity can be attributed to several factors:


These devices allow users to make calls and send text messages anywhere, anytime. So they satisfy the needs of that portion of the population that wants to be connected at all times, and even have the potential to create that need;


They give access to a huge selection of varied, simple, affordable and entertaining applications. Games are especially popular, so much so that the makers of handheld gaming devices are being hammered by this new competition. In the coming months and years gateways with other devices, and especially TV, will open up new opportunities – if not at the industrial level, most certainly in terms of fostering innovation;


They are easy to use, in particular thanks to touchscreen technology and the efforts being made by engineers, designers, developers and programmers – all of whom are aware that the user experience is key to coming out on top. Never before has it been so vital to gaining a competitive edge.


Computer vs. tablet sales, 2013-2017 (milion units)

Evolution of computer and tablet sales throughout 2017

Source: IDATE, 2013

So tablets are taking hold as central devices in the digital home. Poised to replace the personal computer, the tablet is expected to continue its rise in 2013 at a rate that was already being underestimated a few months ago. In the coming years, its popularity will be ensured by an expanded product line that includes “phablets” (phone tablets). The aim of this hybrid device is to target the larger, less wealthy section of the population. IDATE estimates that close to 2 billion tablets or phablets will have been sold between 2009 and 2017.

Companion devices, be it a tablet, a smartphone or phablet, act as second screens, or complements to users’ main screens. This relationship paves the way for a tremendous range of applications associated with television. Internet companies, media content providers, TV networks and other pay-TV package vendors will no doubt capitalise on these opportunities, if not to win back a portion of viewers who have moved to the Web, at least to deepen viewers’ relationship with their programmes.

As a result, the connected TV will be one of the cornerstones of the digital home. Like applications sold through app stores, managed and OTT interactive services could prove enough of a drawing card to persuade households to replace their old set ahead of schedule. This would be an ideal opportunity for manufacturers to have their OLED and Ultra HD technological breakthroughs adopted en masse, thanks to the appeal of having an internet-ready set. IDATE forecasts that standalone connected television sales will rise from 22 million in 2012 to 550 million in 2017.

Typical lifecyle of a television incorporating a new technology

Adoptance cycle of a television incorporating a new technology

Source : IDATE, Smart Home market insight, June 2013>

This fiercely competitive landscape provides the battleground for global dominance in the consumer electronics, telecommunications and internet sectors. Thanks to the programme begun in 2006, China is now a serious up-and-comer, moving in on American giants like Google, Apple, Amazon and Microsoft, as well as Japanese and South Korean CE titans.

The technological innovations fuelling the consumer electronics market both serve and inspire the home automation sector. A host of innovations were on display at the Consumer Electronics Show 2013 earlier this year. Although there was no lack of original ideas, it nevertheless remains that a new paradigm is taking hold and enabling the emergence of a segment long awaited by the housing industry, energy companies and users alike. Combining fixed electronic devices (IP boxes, set-top boxes and integrated technologies) with sensors, OLED displays, recognition tools, augmented reality, an internet connection, a WYSIWYG software interface, and more economical home security, energy management and personal home services solutions (for now). Management and remote control features using a mobile device provide increased flexibility and the ability to supply a tracking system that could be monetised.

This is an excerpt of our insight "Smart Home"

10Jun/13Off

The state of the digital world in figures

Interview with Didier Pouillot, Digiworld Yearbook project manager

Interview published in weekly letter from ARCEP - 7 June 2013

Find the intervew Didier Pouillot by ARCEP on the occasion of the publication of the 13th of the DigiWorld Yearbook: our annual publication on the state of the digital world. (Interview available in french only)

Source: ARCEP's website

Didier Pouillot reviews the status and trends of DigiWorld markets: telecommunications, computer and television, an economy that accounts for 6% of global GDP, but whose performance is currently short of those of the general economy, particularly in Europe, on which Didier Pouillot explains the situation. This is also an opportunity to recall the issues in each market of the digital economy with many business models are changing mainly because of internet giants: Facebook, Amazon, Google, Microsoft and Apple, and more broadly OTT services.

Discover the slides from the London Yearbook presentation with Ronan Dune, CEO Telefónica :

Digiworld Yearbook 2013 Presentation in London, with Ronan Dunne, CEO Telefónica UK Limited. from DigiWorld by IDATE

About the Digiworld Yearbook

digiworld yearbook 2013
197 pages that deliver the finest market insights from IDATE experts who track the changes at work in the globe’s telecom, Internet and media industries throughout the year.

the DigiWorld Yearbook is published in English and French and available in print and PDF format. An iPad edition, developed by Forecomm, is also available.

The 2012 edition can be downloaded for free
The 2013 edition is available for purchase. Print: €99.99, incl. VAT; PDF and iPad: €54.99, incl. VAT

 

  • You can have a look at the digiworld yearbook 2013, purchase it or even download the 2012 version for free at : www.digiworld.org/yearbook/
30May/13Off

Scorecard for the digital economy in 2012

Digiworld Yearbook 2013 : scorecard for the digital economy in 2012

DigiWorld markets took a hit in 2012, with growth dropping to 2.7% after two years on the road to recovery.

DigiWorld markets took a hit in 2012, with growth dropping to 2.7% after two years on the road to recovery. Meanwhile new online, or over-the-top (OTT), services continue to grow by around 20% on average—although, in terms of revenue, they are still outweighed by veteran solutions by more than 20 to 1.

Digiworld Market figures and forecasts 2010 to 2016

Hardware markets have been the hardest hit, with growth dropping by 2.4 points overall in telecom, IT and consumer electronics (CE) markets combined. The first two are still in the black, thanks in large part to rising smartphone sales on the telecom front, and strong tablet sales on the IT front. CE hardware (audio and video equipment) is in bad shape, however. Television sales, which are naturally one of the market’s mainstays, are struggling to find a boost comparable to the one delivered by the introduction of fl at screens in the 2000s.

Services, meanwhile, have fared somewhat better, with growth rates of between 2.7% for telecommunications and 4% for television, by way of 3.8% for IT and software services. These markets outperformed hardware segments in 2012 and were far more homogenous. Yet there are still huge gaps in regional performance levels across the board (see next chapter).

Hardware markets gasping for air

At the end of 2010, we saw signs of concern in certain hardware segments—despite what had appeared to be a year of recovery by and large. PC sales were down, and the industry was already wondering what new products would help keep TV sales on the up (3DTV? Connected TV?). Results for 2011 were relatively reassuring, with sales continuing to rise in both the telecom and IT markets. Only consumer electronics was suffering, although not too badly. Still, 2012 proved a blow, with sales dropping virtually across the board, and pressure on prices largely eradicating any positive infl ux from users upgrading to new devices. TV sales were the hardest hit, and propelled the 7% drop in sales for the CE sector. Increased competition in the smartphone and tablet markets have also shaken things up in the other two sectors.

Services markets still holding on

When the recession was at its height in 2009, the boast was made that ICT services in general and telecom services in particular could weather any storm: there was much talk of resilience, no doubt thinking that, as with counterpart hardware, these services were not only able to take the blows but also to rebound, and find their way back to their initial trajectory. That was then. Although there is no denying a certain relative resistance, it now seems very unlikely that we will return at any point to the growth rates of the mid-2000s, and even less to the double-digit growth of the late 1990s. Or rather, that only a slim portion of services will—thanks to the explosion of new online services. Core veteran services, on the other hand, are up against a new set of pressures from these fledgling rivals: decreased value of telecom services, of customer relations for IT services, and of programming for TV networks.

About the Digiworld Yearbook

digiworld yearbook 2013
197 pages that deliver the finest market insights from IDATE experts who track the changes at work in the globe’s telecom, Internet and media industries throughout the year.

the DigiWorld Yearbook is published in English and French and available in print and PDF format. An iPad edition, developed by Forecomm, is also available.

The 2012 edition can be downloaded for free
The 2013 edition is available for purchase. Print: €99.99, incl. VAT; PDF and iPad: €54.99, incl. VAT

 

  • You can have a look at the digiworld yearbook 2013, purchase it or even download the 2012 version for free at : www.digiworld.org/yearbook/