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News

  NPD: Only 3 Percent Of Gamers Are 'Extreme,' Most Are 'Young And Heavy'
by Eric Caoili
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August 12, 2008
 
NPD: Only 3 Percent Of Gamers Are 'Extreme,' Most Are 'Young And Heavy'
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There are 174 million gamers in the U.S. who play games on PCs and video game consoles, says the NPD group in a recent report titled "Games Segmentation 2008."

The report analyzes seven gamer segments, defined by console ownership, usage, and frequency, seeking to help the industry better understand video game sales, ownership, and usage patterns within these segments.

Of the 174 million gamers in the U.S., 3 percent are classified as "Extreme Gamers," 9 percent as "Avid PC Gamers," 17 percent as "Console Gamers," 14 percent as "Online PC Gamers," 15 percent as "Offline PC Gamers," 22 percent as "Young Heavy Gamers," and 20 percent as Secondary Gamers.

With over 38 million gamers in its segment, Young Heavy Gamers makes up the largest gaming group in the U.S. While Extreme Gamers show a preference for PlayStation 3 and Xbox 360 games, Young Heavy Gamers favor portable systems, with six out of every ten Nintendo DS and PSP owners consisting of Young Heavy Gamers. Young Heavy Gamers make up at least one-third of any system's owners.

The study also shows that among next-generation console owners, PlayStation 3 owners are most likely to own other next-generation consoles. Also, only 10% of PlayStation 2 owners also own a PlayStation 3.

Despite being the smallest group, Extreme Gamers lead all segments in purchasing power, buying approximately 24 titles across all their systems in three months (October - December 2007), over seven times more than the second leading purchasing segment, Console Gamers, who on average purchased only 3.2 games during the same period.

According to the report, Extreme Gamers spent an average of 22.3 hours per week playing video games, while Console Gamers, the second highest segment, spent an average 8.2 hours per week.

NPD analyst Anita Frazier cautioned, "Although Extreme Gamers are heavily involved with the industry, they represent a small portion of the potential market for any new game that comes to market. In order to promote continued growth, we must better understand all of the gaming segments."

The study goes on to note the rising popularity of digital purchases, with digital downloads making up approximately 14% of the games purchased in the surveyed three months. Predictably, Avid PC Gamers had the highest incidence with 27% of their purchases being digital. Over half of Extreme Gamers and over a third of Avid PC Gamers claimed that they would definitely download a feature to enhance a specific game they own.
 
   
 
Comments

Josh Neff
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While it's a great idea to try to expand to non-extreme (Hardcore) gamers, it should be noted that its a VERY bad idea to alienate your existing (and known) market. As the old saying goes " 90% of your business is done by 10% of your customers". While extreme gamers only equal 3% of all gamers, their buying habits rate them MUCH higher in value across the market...and as another old saying goes "A bird in the hand is worth two in the bush".

Matt Ponton
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But, with their buying habits one would presume that the difficulty of 'hitting the mark' is less than going after a group that doesn't buy 24 titles in a three month period. Not saying it's easy, just that you have to wonder if you already have their money before the game is released. That's something the other markets may not have.

Anonymous
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As much as I love to prospect of everyone in the world becoming a "gamer", I don't want to see this industry change the kinds of games it makes. Rather, I'd simply like to see the kinds of games on the market expand.

Warren Thompson
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I really don't see the validty to this classification system. Even if we assume that all of their information is accurate, their 'extreme gamer' is someone who spends over 20 hours a week on gaming, while 'console gamers' spend 8. Based on this report alone, what we are saying is that someone who spends 8 hours a week playing video games is NOT a core gamer? This alienation is unnecessary- there is always going to be a slope of 'time spent playing' vs 'percentage of gamers'. Drawing a line in that slope only corrupts your data.

Based on that, I don't know what they are trying to prove... aside from the obvious shock value of saying "only 3% of gamers are 'extreme'" which is as subjective as it is irrelevent.

Also, this whole 'young and heavy' distinction doesn't settle with me. Are we then to consider that someone who owns a DS, but no consoles or PCs to be in the same category of 'gamers'? Aside from the obvious fact that handheld systems are much cheaper than consoles, there is not one breed of person called a 'gamer' who one day makes a choice between a handheld or a console. 85% of Americans own cell phones, game developers focus on mobile communication technologies to meet the needs of this demographic? No... because while they use electronics, they are not the same as people who use consoles.

I think the report would be better suited to giving us raw data instead of drawing pre-mature conclusions based on the their biased comparisons. As far as I can see, this information is too corrupt to be of much use in the business sense


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