SALES, DEMOGRAPHIC AND USAGE DATA ESSENTIAL FACTS ABOUT THE COMPUTER AND VIDEO GAME INDUSTRY



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2006 SALES, DEMOGRAPHIC AND USAGE DATA ESSENTIAL FACTS ABOUT THE COMPUTER AND VIDEO GAME INDUSTRY

The video game industry is entering a new era, an era where technology and creativity will fuse to produce some of the most stunning entertainment of the 21st Century. Decades from now, cultural historians will look back at this time and say it is when the definition of entertainment changed forever. Douglas Lowenstein, President, Entertainment Software Association Games are widely used as educational tools, not just for pilots, soldiers and surgeons, but also in schools and businesses. Games require players to construct hypotheses, solve problems, develop strategies, learn the rules of the in-game world through trial and error. Gamers must also be able to juggle several different tasks, evaluate risks and make quick decisions. Playing games is, thus, an ideal form of preparation for the workplace of the 21st century, as some forward-thinking firms are already starting to realise. The Economist, August 4, 2005 2006 Entertainment Software Association

WHAT S INSIDE? Who Plays What? Who Plays Computer and Video Games?............................ 2 Who Buys Computer and Video Games?............................ 3 How Long Have Gamers Been Playing?............................. 3 2005 Computer and Video Game Sales by Rating..................... 4 What Were the Top-Selling Game Genres in 2005?.................... 4 What Were the Top-Selling Games of 2005?......................... 5 Parents and Games............................................ 6 Parents Play Games............................................ 7 What Else Are Gamers Doing?.................................... 8 Who Plays What? Online and Wireless Games How Many Gamers Play Games Online?............................. 9 Who Plays Games Online?....................................... 9 What Kinds of Games Are Played Online Most Often?.................. 9 How Many Americans Play Games on Wireless Devices?................ 9 What s the Bottom Line? Sales Data Recent Sales Information (2004 and 2005)......................... 10 Historical Sales Information (1996 2005)........................ 11 How Many Americans Plan to Buy Games in 2006?................... 11 Who Are We? About the ESA............................................... 12 ESA Members................................................ 12 Other Resources......................................... 13 ALL DATA IN THIS DOCUMENT IS FROM THE ESA S 2006 CONSUMER SURVEY UNLESS OTHERWISE NOTED. The Entertainment Software Association (ESA) released its 2006 Essential Facts About the Computer and Video Game Industry at E 3 on May 10, 2006. The data included in 2006 Essential Facts was gathered in an annual study conducted by Ipsos-Insight for the ESA. The study is the most in-depth and targeted survey of its kind, gathering data from almost 1,700 nationally representative households that have been identified as owning either or both a video game console or a personal computer used to run entertainment software. 1

WHO PLAYS WHAT? Who PLAYS Computer and Video Games? 69% of American heads of households play computer or video games. The average game player age is: 33 AGE OF GAME PLAYERS 31.0% under 18 years 44.0% 18 49 years 25.0% 50+ years In 2005, 25% of gamers were over the age of 50. 2

WHO PLAYS WHAT? GENDER OF GAME PLAYERS 62.0% male 38.0% female WOMEN age 18 or older represent a significantly greater portion of the game-playing population (30%) than boys age 17 or younger (23%). Who BUYS Computer and Video Games? The average age of the most frequent game purchaser is: 40 How Long Have Gamers Been Playing? 12 is the average number of years adult gamers have been playing computer or video games. Among most frequent gamers, adult males average 10 years for game playing, females for 8 years. 3

WHO PLAYS WHAT? 2005 Computer and Video Game Sales by Rating BY UNITS SOLD 100 90 80 70 60 50 40 30 20 10 0 49.0% 4.0% 32.0% EVERYONE (E) EVERYONE 10+ (E10+) TEEN (T) MATURE (M) 15.0% 4.7% Fighting 7.8% Role-Playing BEST-SELLING VIDEO GAME SUPER GENRES BY UNITS SOLD, 2005 9.3% Children & Family Entertainment 30.1% Action 8.7% Shooter 11.1% Racing 17.3% Sports 3.7% Sports BEST-SELLING COMPUTER GAME SUPER GENRES BY UNITS SOLD, 2005 4.7% Action 5.8% Adventure 30.8% Strategy 12.4% Role-Playing 14.4% Shooter 19.8% Family & Children s 4

WHO PLAYS WHAT? TOP 20 SELLING VIDEO GAMES OF 2005 BY UNITS SOLD RANK TITLE PLATFORM RATING 1 MADDEN NFL 06 PS2 E 2 GRAN TURISMO 4 PS2 E 3 MADDEN NFL 06 XBX E 4 NCAA FOOTBALL 06 PS2 E 5 STAR WARS: BATTLEFRONT II PS2 T 6 MVP BASEBALL 2005 PS2 E 7 SW EPISODE III: SITH PS2 T 8 NBA LIVE 06 PS2 E 9 LEGO STAR WARS PS2 E 10 STAR WARS: BATTLEFRONT II XBX T 11 WWE SMACKDOWN! VS RAW 2006 PS2 T 12 GOD OF WAR PS2 M 13 MIDNIGHT CLUB 3: DUB PS2 T 14 STAR WARS: BATTLEFRONT PS2 T 15 NEED SPEED: MOST WANTED PS2 T 16 SOCOM 3: US NAVY SEALS PS2 M 17 GRAND THEFT AUTO: SAN ANDREAS PS2 M 18 TONY HAWK AMERICAN WASTELAND PS2 T 19 RESIDENT EVIL 4 GCN M 20 CALL OF DUTY 2: BIG RED ONE PS2 T TOP 20 SELLING COMPUTER GAMES OF 2005 BY UNITS SOLD RANK TITLE RATING 1 WORLD OF WARCRAFT T 2 THE SIMS 2: UNIVERSITY EXPANSION PACK T 3 THE SIMS 2 T 4 GUILD WARS T 5 ROLLER COASTER TYCOON 3 E 6 BATTLEFIELD 2 T 7 THE SIMS 2 NIGHTLIFE EXPANSION PACK T 8 MS AGE OF EMPIRES III T 9 THE SIMS DELUXE T 10 CALL OF DUTY 2 T 11 CIVILIZATION IV E10+ 12 HALF-LIFE 2 M 13 MS ZOO TYCOON 2 E 14 DOOM 3 M 15 HALO: COMBAT EVOLVED M 16 MS ZOO TYCOON: COMPLETE COLLECTION E 17 MS FLIGHT SIMULATOR 2004: CENTURY OF FLIGHT E 18 THE SIMS: UNLEASHED EXPANSION PACK T 19 WARCRAFT III BATTLE CHEST T 20 ROME: TOTAL WAR T 5

WHO PLAYS WHAT? PARENTS* AND GAMES 89% of the time parents are present at the time games are purchased or rented. 61% of parents believe games are a positive part of their children s lives. 87% of the time children receive their parents permission before purchasing or renting a game. *Parents with kids under 18 who also own a game console and/or computer used to play games. The Top Four Reasons Parents Play Video Games With Their Children: Because They re Asked To 79% It s Fun For The Entire Family 75% It s A Good Opportunity To Socialize With The Child 71% It s A Good Opportunity To Monitor Game Content 62% 6

WHO PLAYS WHAT? PARENTS PLAY GAMES 35% of American parents say they play computer and video games. The typical gamer parent is 37 years old. 47% of gamer parents are women. Gamer parents have been playing games for an average of 13 years, with one-third reporting having played for 20 years or more. Among gamer parents, 80% report that they play video games with their children, and 66% feel that playing games has brought their families closer together. Gamer parents spend 19 hours a month playing games. Those with child gamers in their household spend 9.1 hours a month playing games with their kids. 73% of gamer parents say they are regular voters. Source: Peter D. Hart Research Associates 7

WHAT ELSE ARE GAMERS DOING? Gamers devote more than triple the amount of time spent playing games each week to exercising or playing sports, volunteering in the community, religious activities, creative endeavors, cultural activities, and reading. In total, gamers spend 23.4 hours per week on these activities, compared to 6.8 hours per week playing games. 79% of game players of all ages report exercising or playing sports an average of 20 hours a month. 45% of gamers volunteer an average 5.4 hours per month. 93% of game players also report reading books or daily newspapers on a regular basis, while 62% consistently attend cultural events, such as concerts, museums, or the theater. Source: Peter D. Hart Research Associates, 2004 51% of all gamers play games in-person with other players at least one hour a week, and a quarter (25%) of gamers play games with others online for at least an hour per week. 86

WHO PLAYS WHAT? ONLINE AND WIRELESS GAMES How Many Gamers Play Games Online? 44% of most frequent game players say they play games online, up from 19% in 2000. 58% of online game players are male. Who Plays Games Online? 42% of online game players are female. 11.0% Other What Kind of Games Are Played Online Most Often? 7.0% Persistent Multi-Player Universe 9.0% Shockwave/Flash/ Browser-Based Mini Games 52.0% Puzzle/Board/Game Show/Trivia/Card 22.0% Action/Sports/ Strategy/Role-Play How Many Americans Play Games on Wireless Devices? 32% of heads of households report they play games on wireless devices such as a cell phone or PDA, up from 20% in 2002. 9

WHAT S THE BOTTOM LINE? RECENT SALES INFORMATION U.S. COMPUTER AND VIDEO GAME DOLLAR SALES: 2004 AND 2005 DOLLARS IN BILLIONS 9 8 7 6 5 6.2 6.06 7.4 1.1 6.2 7.0.953 6.06 4 3 2 1 1.1.953 2004 2005 2004 2005 2004 2005 VIDEO GAME SALES COMPUTER GAME SALES COMBINED COMPUTER AND VIDEO GAME DOLLAR SALES U.S. COMPUTER AND VIDEO GAME UNIT SALES: 2004 AND 2005 UNITS IN MILLIONS 275 250 225 200 175 203.0 190.5 250.0 47.0 203.0 228.5 38.0 190.5 150 125 100 75 50 25 47.0 2004 2005 2004 2005 2004 2005 VIDEO GAME UNITS COMPUTER GAME UNITS COMBINED COMPUTER AND VIDEO GAME UNIT SALES 38.0 10

WHAT S THE BOTTOM LINE? HISTORICAL SALES INFORMATION U.S. COMPUTER AND VIDEO GAME DOLLAR SALES GROWTH DOLLARS IN BILLIONS 8 7 6 5 4 3 2 1 7.0 7.1 7.4 7.0 6.1 5.5 5.6 4.8 3.7 2.6 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 U.S. COMPUTER AND VIDEO GAME UNIT SALES GROWTH UNITS IN MILLIONS 275 250 225 200 175 150 125 153.0 185.2 197.1 211.0 226.4 241.4 250.0 228.5 100 75 50 25 108.4 74.1 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 How Many Americans Expect to Buy Games? 42% of Americans have purchased or plan to purchase one or more games in 2006. 11

WHO ARE WE? About The Entertainment Software Association Formed in 1994, the Entertainment Software Association (ESA) is the U.S. association dedicated to serving the business and public affairs needs of companies that publish video and computer games for video game consoles, personal computers, and the Internet. Association members include the nation s leading interactive entertainment software publishers, which collectively accounted for more than 90 percent of the $7 billion in entertainment software revenues generated in the United States in 2005, and billions more in export sales of U.S.-made entertainment software. The ESA offers a range of services to its members including operating a global anti-piracy program, staging the Electronic Entertainment Expo trade show, fielding business and consumer research, and representing the industry at the federal, state and local levels on a wide range of policy issues. For more information about the ESA and its programs, please visit www.theesa.com. ESA Members as of May 2006 Activision, Inc. Atari, Inc. Buena Vista Games Capcom USA, Inc. Crave Entertainment Eidos Interactive Electronic Arts Her Interactive, Inc. id Software Konami Digital Entertainment America LucasArts Mad Catz, Inc. Microsoft Corporation Midway Games, Inc. Namco Hometek, Inc. Nintendo of America Inc. NovaLogic, Inc. SEGA of America, Inc. Sony Computer Entertainment America Take-Two Interactive Software, Inc. THQ, Inc. Ubisoft Entertainment Vivendi Universal Games Warner Bros. Interactive Entertainment Inc. Wild Tangent www.activision.com www.atari.com www.buenavistagames.go.com www.capcom.com www.cravegames.com www.eidosinteractive.com www.ea.com www.herinteractive.com www.idsoftware.com www.konami.com www.lucasarts.com www.madcatz.com www.microsoft.com www.midway.com www.namco.com www.nintendo.com www.novalogic.com www.sega.com www.us.playstation.com www.take2games.com www.thq.com www.ubi.com www.vivendiuniversal.com www.wbie.com www.wildtangent.com 12

OTHER RESOURCES For more information on the ESA and its programs, please visit: www.theesa.com Entertainment Software Rating Board (ESRB) www.esrb.org The Entertainment Software Rating Board (ESRB) is a self-regulatory body established in 1994 by the Entertainment Software Association (ESA). ESRB independently applies and enforces ratings, advertising guidelines, and online privacy principles adopted by the industry. Academy of Interactive Arts and Sciences www.interactive.org Located in Los Angeles, CA, the Academy of Interactive Arts & Sciences (AIAS) is an official professional academy of the $7+ billion interactive entertainment software industry. AIAS is supported by the industry s leading companies. E 3 www.e3expo.com, www.e3insider.com The Electronic Entertainment Expo (E 3 ), Where Business Gets Fun, is the world s premiere trade event exclusively dedicated to showcasing interactive entertainment and educational software and related products. The show s website for consumers, E3Insider, can be found at www.e3insider.com. International Game Developers Association (IGDA) www.igda.org The International Game Developers Association (IGDA) is a non-profit membership organization that advocates globally on issues related to digital game creation. The IGDA s mission is to strengthen the international game development community and effect change to benefit that community. The NPD Group, Inc. www.npd.com Since 1967, The NPD Group has provided reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,400 manufacturers and retailers rely on NPD to help them better understand their customers, product categories, distribution channels, and competition in order to help guide their businesses. Video Game Voters Network www.videogamevoters.org The Video Game Voters Network, a project of the Entertainment Software Association, is a means by which American adults who play computer and video games can organize and take action on important policy issues affecting the computer and video game industry. 13

www.theesa.com 2006 Entertainment Software Association