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| Gartner Dataquest Says New Game Console Shipments to Surpass 49 Million Units in 2002 |
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SAN JOSE, Calif., November 15, 2001 - With the launch of two new game consoles, worldwide video game console shipments are projected to reach 49 million units in 2002, up from 29 million units in 2001, according to Dataquest Inc., a unit of Gartner, Inc. (NYSE: IT and ITB).
"Consumers may not be interested in upgrading their PC to run spreadsheets faster, but in video game consoles, hardware performance is 'in your face' obvious," said Andrew Johnson, vice president at Gartner Dataquest. "It is the unending quest for more lifelike graphics that will keep consumers coming back to retailers for more gaming devices." Developing high-performance game consoles is a significant project for hardware vendors. Gartner Dataquest analysts said with proprietary silicon solutions, these consoles require high investments to stay on the leading edge of the performance curve. It's this high investment that has necessitated longer product life cycles to all vendors for maximum profits through game software sales. "This high investment has also gated the market for new competitors, giving Sony PlayStation and PS2 models a somewhat protected market," Johnson said. "But Nintendo and Microsoft are ready to challenge Sony if economic conditions do not get in the way." A recent GartnerG2 survey found that 75 percent of video game sales will be to consumers that already have a video game console, this is up from 55 percent one year earlier. A new competitive landscape may shorten the product life cycle, which means the industry could see new video game consoles in 2004. This would have a tremendous impact on the game industry business model. Gartner Dataquest analysts said manufacturers must also be prepared for more cautious consumer spending and a slower ramp of production and distribution capacity, which would temper the upturn in sales in 2002. "Increasing production capacity in 2002 is no small task for Microsoft, Nintendo and Sony," Johnson said. "Their consumption of component devices, such as hard disk drives, will provide an indication of how fast vendors are ramping up production. While gaming devices have been popular within their expanding population of gamers, long-term growth into the mass market segment of nongamers is a serious issue. Game titles will play a key role expanding the addressable market." Additional information on the worldwide video game hardware market is available in the Gartner Dataquest Research Brief "Worldwide Video Game Hardware Forecasts." This document examines the market potential through 2006. Gartner Dataquest has a series of documents focused on the gaming industry in the upcoming Gartner Dataquest research Spotlight "Video Game Mania: Much More than Fun and Games." This Spotlight provides various reports on the gaming industry, such as the game consoles' impact on the PC industry, the convergence of home entertainment, the future for online gaming, the outlook for mobile gaming, and a profile on who's buying video game devices. This Spotlight will be available on Gartner's Web site on the Gartner Dataquest Hardware and Systems Focus Area at www.gartner.com/1_researchanalysis/focus/hwmkt_fa.html. To subscribe to Gartner Dataquest programs, please call 800-419-DATA, or 408-468-8000. Reports can be purchase on www.gartner.com. Gartner Dataquest is the recognized leader in providing the high-technology and financial communities with market intelligence for the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the global information technology industry. Gartner, Inc. is a research and advisory firm that helps more than 11,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner, Inc. is headquartered in Stamford, Connecticut, and consists of 4,300 associates, including 1,200 research analysts and consultants in more than 90 locations worldwide. The company achieved fiscal 2001 revenue of $952 million. For more information, visit www.gartner.com. |
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Contact: Tom McCall 408-468-8312 tom.mccall@gartner.com |
