Entertainment & Media Outlook 2011-2015 - PwC

The interactive gaming demographicis changing. Motion sensor consoleshave popularised family games, makinggaming a mainstream pastime.The interactive game market (NZ$ millions)Historical dataForecast dataNZ$ 2006 2007 2008 2009 2010 2011 2012 2013 2014 20152011-2015CAGRConsole/handheld 49 54 57 61 58 56 60 65 68 72 4.4%Online 3 4 6 7 7 7 8 10 11 13 12.5%Mobile 25 33 43 51 60 64 75 85 92 99 10.5%PC 11 13 14 14 13 11 10 10 8 8 -7.8%Total 88 104 119 133 138 138 153 169 179 192 6.9%Sources: iGEA Interactive NZ 2010, PwC New Zealand, Wilkofsky Gruen AssociatesGames defy the downturnInteractive game sales were worthclose to NZ$140 million in NewZealand in 2010. The industry hasshown steady growth since 2006,continuing to expand throughoutthe recession even as retail sales felloverall. Most New Zealand homes havea device for playing interactive gamesand ownership is more widespread forhouseholds with children under 18. 42The interactive gaming demographicis changing. Motion sensor consoles,notably the Nintendo Wii, havepopularised family games, makinggaming a mainstream pastime. 43 Socialmedia games such as Farmville are alsodrawing in a whole new interactivegaming demographic.Contributing to growth globally isrising ownership of smartphones andmobile devices. Mobile applications forsocial games include advertising andencourage gamers to make ‘microtransactions’or use real money tobuy in-game credit or goods. This hasopened up new revenue streams forNew Zealand gaming companies. 44Local developers are also takingadvantage of the lower cost of entrypresented by online distributionchannels such as Apple’s App Store.The new potential for interactivity,and the broader appeal of 3D gamesand controller-free consoles, will drivegrowth in this market in the mediumterm. Industry commentators predicta new gaming console war will start in2012 and continue through 2013. 4543 ‘Geek’, Rebecca Stevenson, The Press (Christchurch), 23 October 2010.44 Mark Goodacre as quoted in ‘Geek’, Rebecca Stevenson, The Press (Christchurch), 23 October 2010.45 ‘Kiwi game developers spark on mobile, online’, Alex Walls, National Business Review, 4 March 2011.46 ‘Gaming brings its own rich rewards’, Matt Rilkoff, The Timaru Herald, 28 October 2010.New Zealand Entertainment and Media 2011-2015 | Outlook 33