Books, music, video games and video : Household spending will start to climb in 2015

Alexandre JOLIN
Alexandre JOLIN
Consultant de l'IDATE

The study on how the online shift is affecting content industries analyse four main segments: books, recorded music, vide0 games and video products. Presentation.

For each sector, it provides readers with detailed market figures, analyses the move to the internet, its impact on industry structure and revenue sharing, and delivers market forecasts up to 2018, both global and for seven key national markets.

Alexandre Jolin, the Project manager for the report remarks that, “the global content market topped €140 billion in 2014, or only just over 1% more than in 2012, which marked a record low since the onset of electronic distribution channels”. Keeping in mind that 37% of content industries’ revenue come from these online distribution channels, or double the amount in 2010, albeit with huge disparities between the segments: 13% for books versus 67% for video games.

Content dematerialisation produces certain common effects to these different segments, despite the characteristics of books, recorded music, video games and video:
• a rise in subscriptions, at the expense of per-unit sales
• lower prices, which, combined with piracy, has an impact on household spending
• simplification of the value chain, with technical costs and intermediaries having less of an influence, which benefits consumers as well as those involved in creating, publishing and producing content
• piracy has a significant effect, although it seems to be stabilising thanks to new unlimited offerings, at least in developed markets
• a trend towards concentration upstream (production/editing) and downstream (distribution)

The various segments of the content industry are expected to follow different trajectories in the next five years:
• Publishing, which has only just started the process of dematerialisation, is likely to see revenues stagnate.
• Music, video and video games are likely to continue to grow or return to growth.
• The overall dematerialisation rate will reach 63% in 2018.

IDATE has identified the following key factors in digital content market development:
• a tighter link between purchase of a physical copy and a dematerialised copy
• the rise of the 'service' function, which allows personalised content recommendations
• innovative pricing models, individualised for each type of content (yield management)

Household spending expected to be back on the up

Falling in recent years, household spending on cultural products and services should start to increase from 2014, reaching 84.20 EUR per year worldwide in 2018. We nevertheless expect to see huge regional disparities, as North American households will continue to be by far the heaviest spenders on cultural goods and services, totalling an average €375 per household in 2018.

Household expenditure on cultural goods and services, worldwide, by content type, 2014–2018 (EUR,%)

Source: IDATE, Content Economics, September 2014


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Digiworld Summit 2014 : Mobility reloaded, we ain’t seen nothing yet!


Yves Gassot
Directeur Général, IDATE

‘Mobility reloaded” will be the central theme of the 36th annual DigiWorld Summit.

Following through on ‘‘Game Changers’’ (2012) and ‘‘Digital Gold Mines’’ (2013), this year’s theme will allow us to further our examination of current and future upheavals in the digital economy by exploring the issues from a specific angle: mobility and its impact on user behaviour and on the value chain for telecoms, TV, advertising, the Internet, gaming, smart cities, etc.

  • What innovations can we expect from mobile Internet disruption?
  • Are fixed and mobile superfast access interchangeable?
  • What new players and business models will emerge from the Internet of Things and mobile advertising?
  • Will mobile devices turn TV into a one-to-one business?
  • How can Europe get back in the game?

IDATE Chairman François Barrault points out that, ‘If the cloud, big data and the Internet of things are clearly the major disruptions looming on the horizon, the momentum today lies in the mantra: mobility first!

IDATE CEO, Yves Gassot, details the key points of this year’s programme: ‘What began with the swift commercial success of 4G is segueing into the spectacular technological leaps expected from LTE-advanced and, beyond that, the prospect of 5G, the widespread adoption of software-driven networking (SDN)… But questions also linger over the accelerated pace of the migration from the fixed to the mobile Internet, spurred by the massive popularity of smartphones and tablets, coupled with the surge of emerging economies. It goes without saying that a great many stakeholders are being affected by these massive changes in the landscape, which we have chosen to explore from three angles: How revenue is progressing for mobile operators and other players, from M2M to the Internet of things and beyond; How the massively mobile Internet will affect the advertising ecosystem; and how TV industry players are positioning themselves now that video accounts for an increasingly large share of mobile traffic’.

The 36th annual DigiWorld Summit will run from 18 to 20 November in Montpellier, France, and play host to a panel of international industry luminaries who will share their views with more than 1,300 participants from 30 countries. IDATE analysts will lend their expertise to the sessions that will be moderated by Digiworld Institute members.



DigiWorld Week: the DigiWorld Summit broadens its horizons

This year’s DigiWorld Summit will kick off DigiWorld Week: a new initiative from IDATE and its key partners to explore the many facets of the digital society’s core economic issues. A series of exciting events will be taking place from 16 to 21 November on either side of the core two-day Summit:

  • The Connected Things Forum
  • The Game Summit
  • MIG (Montpellier In Game)
  • Industry Oracles
  • Workshops
  • Economic Club on m-payment

> Find the latest programme updates at www.digiworldweek.com


More than 140 speakers on hand

This year, we are delighted to welcome speakers from the four corners of the globe, come to share their views on the future of mobility:

    • Mikael BÄCK, Vice President Global Strategy & Portfolio Management of Ericsson will share some of the chief findings of the “Mobility report”.
    • Jean-Michel FOURNIER, CEO & Co-Founder of BitGym, a San Francisco-based start-up and winner of the prestigious Auggie Award at AWE 2014, will talk about the “quantified self” phenomenon.
    • Kayvan MIRZA, CEO & Co-Founder of Optinvent will unveil his approach to new generation smart glasses.
    • Patrick PELATA, EVP & Chief Automotive Officer of Salesforce.com will speak with Thierry VIADIEU, New Mobility Program Director from Renault, about the future of connected cars.
    • Christophe WILLEM, Senior VP of Strategy & Marketing at Thales Alenia Space, will tell us if drones, balloons and mini-satellites offer viable solutions for connecting huge swaths of the population to the Internet.
    • Michel COMBES, CEO of Alcatel-Lucent will close the “Road to 5G” session, whose speakers include Selina LO, President & CEO of Ruckus Wireless, and Atsushi TAKESHITA, President & CEO of DOCOMO Communication Laboratories Europe.
    • Pierre LOUETTE, Deputy CEO of Orange and Carlos LOPEZ-BLANCO, Global Head Public & Corporate Affairs for Telefonica, will discuss how telco business models will evolve in Europe, against the backdrop of market consolidation.
    • Laurent SOLLY, Facebook’s Managing Director France, and Benny ARBEL, Founder & CEO of MyThings, a rising star in retargeting, will discuss the challenges that advertising faces as it makes the transition to mobile.
    • Luc JULIA, VP & Innovation Fellow of Samsung and Co-authored Apple Siri's core patents, Erick TINICO, Director of Mobility at AT&T, one of the world’s most advanced telcos and Axel HANSMANN, Gemalto’s VP of M2M Strategy & Marketing, will share their analysis of new business models for M2M and the IoT.
    • Fu SHENG, CEO of Cheetah Mobile, a growing mobile Internet powerhouse in China, with 340 million users.
    • Abigail KHANNA, Head of Digital and Future Media Business Development at the BBC, Steve McCAFFERY, GM & SVP of sales for Europe Arris, Eric SCHERER, Director of Future Media, France Télévisions, and Valery GERFAUD, General Manager, M6 Web, will explore what the future holds for television, now that mobile devices are becoming users’ screen of choice.
    • Guillaume de FONDAUMIERE, Co-CEO of Quantic Dream, Susan O’CONNOR, a writer whose script credits include the games BioShock 1 & 2, Far Cry 2, Tomb Raider and Star Wars 1313, along with Charles CECIL, co-founder of Revolution Software, creator of Broken Sword, are among our video game Oracles.
    • Meng LI, Director of China Telecom’s Mobile Business Department Europe, will talk to us about the development outlook for mobile in its various forms in the world’s biggest market.
    • Jean-Ludovic SILICANI will talk about his time as Chairman of France’s telecoms and postal regulator, ARCEP, and share his insights into key issues going forward.
    • Vincent LE STRADIC, Managing Director of Lazard, will provide a financier’s perspective on the health of Europe’s digital economy. And…
  • Axelle LEMAIRE, French Ministry of State for Digital Affairs will deliver the Summit’s closing remarks.

See the complet list of speakers.


Interview with Daniel KAPLAN, Business Developer Mojang, Stockholm, Sweden

Published in COMMUNICATIONS & STRATEGIES No. 94, 2nd Quarter 2014

Video game business models and monetization



Daniel KAPLAN, Business Developer at Mojang

Conducted by Peter ZACKARIASSON, University of Gothenburg, Sweden



C&S:  Minecraft is, by any standard, a very successful game. How much of this success do you ascribe to your business model?
Daniel KAPLAN: I think it played quite a big role since it was discounted for quite a long time. The game was discounted from day one, since it was “released” during very early development. The whole idea was to release it early to see if there was an interest and to see if the project could bear fruit. A lot of people who bought it initially, I think, felt that they had somewhat invested into the project and the ones who were on from the beginning made quite a good deal.

C&S: Do Minecraft exploit any specific previous business model, or has it paved its way with a unique model to generate profit?
D.K.: There are other games that were the inspiration for this model, Mount and Blade from TaleWorlds for instance. They also released their game before it was finished for a discounted price and continued the development with the community.

C&S: Today Minecraft has become a phenomenon that is not only tied to the game itself, but there are many physical product spin-offs. How important is this brand extension for Mojang?
D.K.:We are still a game company but it definitely helps. I think there is a fine line in between how much you can do with a brand before it feels too stretched. We try to create merch/products that we would like to have ourselves, rather than try to fill gaps with our brand with various products. It is sure a fine line and I think a brand can be too exposed and become too stretched.

C&S: Is it possible to become too successful? That is, having produced Minecraft – is it possible to repeat that success? What about the next game of Mojang?
D.K.: I think the problem with becoming too successful is that you will always be compared with your success, regardless of what you produce after that. It is important to not lose focus and continue to deliver things regardless of what they are so you don’t stagnate.

I think that it is almost impossible to create a success like Minecraft again. A lof of the “cred” Mojang got was because it was an up and coming company/person during the initial development of Minecraft, and the whole story around Notch (the founder of Mojang) was a classic David and Goliath story, which we can’t reproduce anymore. We have a whole different starting point now in comparison from where we started.

The next game we are working on, Scrolls, is already profitable and was released in a similar manner to Minecraft. We are super happy about the game being profitable even though it is not close to the success of Minecraft. It is a bit silly to try to compete/compare our projects with Minecraft to be honest.

C&S: What directions do you see the video games industry taking when it comes to generating sustainable business models? Last year Minecraft was one of the two pay per play games in the US top 20 mobile games. Not adopting a free to play business model, is it a conviction or the best way to be different within a serious competitive framework?
I don’t know what will happen in the future. You see different trends all the time and you see companies not following the trends and they are successful. I think that the mobile business will continue growing and will continue to have different business models for various types of games or apps. I think it is hard to say that everything will be x or y. Considering the widespread presence of mobile devices, it allows for more niche products too which will let you create products that don’t follow the trends and can still be successful.

Daniel KAPLAN is Mojang's business developer since October 2010. He was born and raised in Skövde, Sweden. He founded ludiosity.com

For more information about our activities: www.comstrat.org

Sophie NIGON
Managing Editor

Discover our issue Video Game business models and monetization on this subject.




[ITW] Yves GUILLEMOT, Co-Founder and CEO Ubisoft, Paris, France

Published in COMMUNICATIONS & STRATEGIES No. 94, 2nd Quarter 2014

Video game business models and monetization


Interview with Yves GUILLEMOT Co-Founder and CEO UBISOFT


Conducted by Philippe CHANTEPIE
French Ministry of Culture and Communication;
Associate researcher, Innovation & Regulation Chair, Paris


C&S:  We have entered the 8th generation of consoles. Do you consider it likely that this will upset the market positions of publishers and console manufacturers?
Yves Guillemot:  This new generation of consoles brings many changes, incorporating all the innovations from parallel markets and multiplying their potential through technological power. These platforms reach an unparalleled high level of performance, immersion and opportunities which allow us to create even more powerful game experiences. Each generation of consoles has large implications for publishers who need to invest heavily to maximize power and be able to seize the great opportunities that arise.
On the other hand, the strong growth in mobile and PC markets, driven by social games, permanently connected and free access, is a challenge for traditional industry players, with new economic and editorial models that differ from more traditional games. These models started being introduced at the end of the previous generation of consoles. New platforms like the Playstation 4 or Xbox One have fully integrated these developments and allow us to put the player at the center - before, during and after the game experience - and to give him/her an increasingly active role in changing content.

C&S: Casual gaming has grown rapidly and has already started occupying a predominant position. Do you think it is likely that this will continue to increase?
Y.G.: Casual gaming is not a new phenomenon. In 2006 the Nintendo Wii had taken a big step towards attracting video games and a new audience, part of which is now plays more traditional games. The rise of social networks, mobile games and online greatly amplified this phenomenon and globalised the supply and the audience to which it is intended. The video game market today encompasses nearly 2.5 billion players, compared to 500 million previously. This is a pool of significant growth for our industry. For example, one of our flagship brands Just Dance is a dance game first released on the Wii, which has sold 49 million copies since 2009. It was particularly popular during the Christmas season.

C&S: We are witnessing significant changes in revenue models. Are these new models mature enough and able to renew the game console segment?

Y.G.: These new models are growing dynamically and also continue to evolve. Some examples or experiences have shown us the difficulty of maintaining high market shares and good consistent results. Without a miracle, renewal is necessary to adapt to a changing marketplace. Ubisoft deploys and uses these models, while consolidating and diversifying a portfolio of original brands for which we control the entire creative and commercial process. Beyond the video game, our goal is to increase the visibility and attractiveness of our franchises by being increasingly present on new media such as television, with the Raving Rabbids TV series, and soon the cinema with the adaptation of franchises like Assassin's Creed or Splinter Cell. The Raving Rabbids Futuroscope theme park attraction, open for several months, is also a success.

C&S: Do you consider that the development of competition in the video game industry will lead to transform the production system of game publishing and how?

Y.G.: In recent years, production of video games has become considerably more professional. Our industry is constantly evolving: our businesses, the technologies we use, as well as the habits and customs of the consumers, such as being permanently connected with their phones. These changes are revolutionizing the way we design our games. We must constantly renew and adapt to propose the most innovative and immersive creative experiences. For example, a game like Watch Dogs allows our players via mobile applications connected to the game console, to play anywhere and anytime; it also allows their friends who do not have game consoles to help them progress in the game. Our mission is to provide our players ever stronger and enriching experiences while finding technical solutions allowing us to reduce our costs and therefore our risk. To remain agile and ready to face these challenges, we actively invest in R & D in France and abroad.

C&S: Which factors do you think are the most disruptive of the game economy factors present or future: free to play, an actor like Steam, etc.?

Y.G.: The free-to-play model was born in Asia to circumvent the problems of piracy of the PC game business model. This model has experienced significant growth in recent years in Western markets. By removing entry barriers, it allows players to experience games and be free to invite their friends and invest if they like the content. This model has now gone beyond the sphere of casual games in which it was previously embedded to move towards more traditional experiences and platforms such as consoles. Ubisoft has been present in this segment for some years with games like Settlers Online, Howrse, and more recently with Trials Frontier, and The Mighty Quest for Epic Loot.

C&S: The Montreal studio set-up seems to be a supporting model of this industry. What elements of this support do you consider are the most strategic to strengthen the ecosystem of this sector?

Y.G.: Canada, but also other territories around the world, has been able to highlight craft, creativity and innovation as a driver of economic development. These territories were able to discern the many benefits that the digital creation industry and jobs with high added value could bring. In addition to the direct incentives, education is also specialized in these areas to form a diverse pool of talents. Two key factors in this success that are important in the eyes of the gaming industry are the unique efforts and the simplicity of public procedures.



Yves Guillemot founded Ubisoft in 1986 with his four brothers, and was named CEO of the company in 1988.  Starting off by importing and translating video games from England, Yves and his brothers immediately used the distribution business to fund the creation of games, starting with Zombie in 1990 for Atari ST.  Yves has overseen the phenomenal growth of Ubisoft into an internationally renowned and respected creator of quality video games with 29 studios, distribution in 55 countries and with more than 9,200 employees around the globe. For the 2013-2014 fiscal year it generated sales of 1.007 billion euros.
Born in Brittany of France's west coast, Yves grew up in a family of entrepreneurs.  All five Guillemot brothers worked summers in the family agriculture supply business.  Later, Yves attended business school in Paris, formalizing his education in the creation and sustenance of an enterprise. Yves is married and enjoys playing video games with his three children.

Published in  COMMUNICATIONS & STRATEGIES No. 94, 2nd Quarter 2014

For more information about our activities: www.comstrat.org

Sophie NIGON
Managing Editor


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


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:


Edito by Yves Gassot

Yves Gassot


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.


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.


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


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:

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[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 :


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