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Companies in this industry manufacture electronic toys and games, including video game consoles. Major companies include console makers Microsoft (based in the US), Nintendo (Japan), and Sony (Japan), as well as peripheral providers such as Bigben (France), Logitech (Switzerland), and Mad Catz (Canada).
Global video game revenue is forecast to exceed $93 billion in by 2019, according to PricewaterhouseCoopers, fueled by the world's largest video game markets by revenue: the US, Japan, and China. Key growth markets for console gaming include Brazil, India, and Indonesia. Almost all manufacturing of electronic toys and games takes place in countries outside the US.
The US home video games and other electronic toys manufacturing industry, a subset of the toy manufacturing industry, includes a small number of companies with combined annual revenue of about $450 million.
Entertainment and games software and manufacturing of personal computers (PCs) used for gaming are covered in separate industry profiles.
Demand is driven by personal income and product innovation. The profitability of individual companies depends on effective marketing, competitive product design, and manufacturing efficiency. Market success drives additional revenue via royalties paid by third-party game developers. The US video game console industry is highly concentrated: the top three companies dominate.
Electronic gaming products compete with PCs, TV, home entertainment set-top boxes, smartphones and tablets, and other forms of electronic and nonelectronic entertainment for consumer leisure time.
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