Video game console usage is hitting new heights, with 60 percent of U.S. households now owning a video game console, based on the fourth annual State of Media Democracy report based on a survey of the media habits of Americans.
That figure compares to just 44 percent three years ago and represents the triumph of the Nintendo Wii, which has broadened the audience for video games. The growth is driven by Generation Xers and Baby Boomers, according to the report, which was compiled by consultancy Deloitte. About 70 percent of Xers own a game console, compared to 53 percent three years ago, and 44 percent of Boomers own one, compared to 31 percent three years ago.
About 31 percent of Boomers said they played a newly released video game on a console in the past six months, up from 12 percent in 2008. About 54 percent of Xers played, compared to 37 percent a year ago. Meanwhile, about 74 percent of Millennials, the youngest generation, played a game in the last six months, compared to 59 percent a year ago. Even mature adults saw an increase, with 8 percent playing a game compared to 3 percent a year ago.
One of the reasons for the increase is that Americans are changing their habits in the recession, with more of them entertaining themselves at home instead of going out for more expensive entertainment, said Phil Asmundson, vice chairman and U.S. technology, media and communications leader at Deloitte. As a result, the web-connected console is becoming a significant distribution channel into the home.
Games are benefiting from an increase in television viewing in the home. During the recession, consumers have returned to cheap TV viewing; there was a 26 percent increase in the number of Americans choosing TV as their favorite type of media compared to the previous year.
The increase in console ownership is likely due to the effectiveness of Nintendo’s strategy of targeting the Wii game console at non-gamers, said Ed Moran, director of insights and innovation at Deloitte. The increase in console ownership is also interesting, considering that overall game console hardware and software and accessory sales are down 12 percent year to date. But it suggests that more nongamers probably entered the market in the past three years, not necessarily in the past year alone. Also, many of those gamers may be playing used games, rather than brand new games, Moran said.
More than 70 percent of people surveyed ranked TV watching in their top three favorite media activities. About 34 percent of customers place it at the top of the list. Using the Internet for media entertainment itself came out as the favorite activity for 14 percent of consumers, making it the No. 2 choice behind PC. About 86 percent of respondents say they prefer to watch TV with commercial-skipping or “on demand.” But less than 10 percent of Americans say they prefer watching the same content online.
TV is winning in part because Americans are reducing paid entertainment. About 72 percent of Americans say they have reduced purchases of movies, concerts, sporting events, DVDs, CDs, and video games. Consumers watch 18 hours of TV programming in a week, on average, up from 16 hours last year. Millenials saw the biggest increase, from 10.5 hours to almost 15 hours.
Other big trends include the decoupling of the Internet from the desktop computer, thanks to the rise of web-connected mobile phones and other ways of connecting. Some 65 percent of respondents want to be able to use their TV to connect to the Internet to download videos or other content.
About 47 percent of smart phone owners say the device is one of their three most valuable media and entertainment products, up from 20 percent last year. About 48 percent of people say they have data plans for their mobile phones and 42 percent use the phones to access the web. About 15 percent of consumers buy products on their phones.
The most popular mobile activities include text messaging (72 percent), accessing the Internet (42 percent), online search (30 percent), downloading apps (27 percent), and using navigation (26 percent).
TV is still the most influential advertising medium. Online ads are getting less effective. The ability of ads to redirect traffic to another web site has dropped from 72 percent to 59 percent in the past three surveys.
But the report also noted the rise of tribal marketing, which uses social tools to engage consumers. About a quarter of consumers are socializing online almost every day and 60 percent have a social networking page, up from 48 percent last year.
About half of all U.S. consumers and 69 percent of Millennials say that online customer reviews and ratings influence their buying decisions more than any other type of online ads, and 51 percent have purchased products based on an online recommendation. About 24 percent of consumers want an online service that recommends a product based on other consumers’ preferences.
The report is based on interviews with 2,046 people ages 14 to 75 in the U.S. The survey was conducted in September and October.
[Photo credits: Kylewalker on Flickr]