Charts: The State of the Multi-Billion Dollar Console Gaming Market
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The State of the Multi-Billion Dollar Console Gaming Market

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With over 2.7 billion gamers worldwide in 2020, the video game industry is undergoing a renaissance. Billions of dollars are pouring in as transformations occur on multiple fronts, including in mobile, PC, and console gaming markets.

For gamers in the latter category, there comes a monumental time when the cycle flips the page to the next generation of consoles. We are now at that pivotal moment, with the Xbox Series X and Sony PlayStation 5 set to launch on November 10 and 12, 2020, respectively.

How will this generation of console games fare relative to past iterations, and which target demographics will be driving future sales?

There Can Only Be One

Xbox and Nintendo have put up a respectable fight, but the history of gaming console sales point to an extended era of PlayStation dominance.

In fact, PlayStation sits quite comfortably on the top of the podium, with the PS2 alone experiencing greater sales than both the Xbox 360 and Xbox One combined.

Historical game console unit sales

Over time, Sony has only widened the gap between themselves and the competition. The spread in unit sales between PS3 and Xbox 360 ended 1.6 million in favor of Sony. In the following product cycle, Sony achieved only further dominance, with the difference between PS4 and Xbox One sales now sitting at 63.7 million units.

Looking ahead, unit sale estimates for the PS5 range from 120-170 million and the new console is set to outperform Xbox again—in line with past trends.

Game Console Sales Galore

Gaming revenues have gone unscathed despite a pandemic, a retraction in economic activity, and the tightening of budgets for households in 2020. This trend could well be a result of video games growing as a form of stay-home entertainment.

console game revenue forecast

On an annualized basis, global video game console revenues are to hit $51 billion in 2020 and reach past $60 billion in the next two years.

An Attractive Disconnect

It’s clear there is significant buzz around the new consoles, but here’s another perspective that highlights their allure to consumers.

Video games possess an attractive disconnect in that they are an entertainment cash cow for gaming companies, yet gaming products also happen to be a huge cost saver for the consumer relative to other platforms and devices.

cost of gaming compared to other entertainment

The average cost per hour for gaming services is much cheaper than the cost of a book and even more competitive relative to the cost of entertainment giants Netflix and Spotify.

An Evolving Landscape

Consoles have transformed to being about much more than just gaming. They now take front and center in people’s homes as a centralized hub for all things entertainment. For both the Xbox One and PS4, half of all gamers use their consoles for non-gaming activity.

game consoles usage

Another more notable form of transformation is the identity of the gamer itself. The classic portrayal of teenage boys engaged in Super Mario after school in their parents’ basement has all but dissipated.

In addition to older male users, there’s now a significant emergence in female gamers. In the U.S., women surpass men in both the 36-50 and 51-65 age cohorts. Furthermore, age demographics show a higher usage amongst men in the 36-50 age group, relative to the 10-20 cohort.

Age of gamers

A Bright Future

There are reasons to expect the next generation of console gaming to be the greatest yet.

PlayStation has momentum on their side, and a slew of new gamers exist today that will continue to help transform the market.

With a more digitally connected world, this new era will see gamers that play and compete with one another from all four corners of the globe. For gamers, this will be a thrilling experience—and for companies, a potentially very lucrative one.

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Infographic: 11 Tech Trends to Watch in 2023

This infographic highlights eleven exciting areas within the world of technology worth keeping an eye on in 2023.

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11 Tech Trends

Infographic: 11 Tech Trends to Watch in 2023

It can be tough to keep up with the rapid pace of innovation.

Each new year delivers the full spectrum of progress from game-changing breakthroughs to incremental advancements in a wide variety of fields.

In a noisy media landscape fueled by hype and speculation, it can be tough to know where true value is being created. The infographic above, which draws from CB Insights’ recent report on 11 Tech Trends To Watch Closely in 2023, helps narrow down some areas of focus:

  1. Immortality-as-a-service
  2. The secret invasion of super apps
  3. Fintech’s rapid regeneration
  4. Bots in the house
  5. Virtual power plants
  6. Healthcare’s invisibility trick
  7. Smell goes digital
  8. Femtech turns to menopause
  9. The bio-based materials boom
  10. India’s tech ascent
  11. Regenerative agtech takes root

The report draws information from earnings transcripts, media mentions, investment activity, patents, and more to arrive at the trends listed.

We’ll examine three of these trends below in a bit more detail.

Setting the Stage: Clash of the Super Apps

The concept of a super app⁠—an all-in-one smartphone application that integrates a wide range of services⁠—is far from new. In fact, for years now, WeChat has been the go-to app for many Chinese citizens to chat, order services, pay bills, and more.

A natural question comes to mind: why doesn’t an app like that exist in Western countries yet? Well, there are a couple of key reasons:

  1. Consumers and regulators alike are wary of providers holding so much personal information and power. In China, WeChat actually had government support, integrating public services into the app. As well, expectations of personal privacy are completely different in China than in Western countries
  2. Unlike China, which rapidly adopted digital payments, North America and Europe had preexisting near-ubiquitous financial networks in place. Super apps were a game changer for millions of unbanked consumers in China and beyond.

The situation is changing rapidly though, and 2023 could be the year that the foundations are laid for a clash of various Big Tech incarnations of the super app.

In late 2022, Microsoft was rumored to be building a super app using Bing as the foundation, and recent investment into ChatGPT adds fuel to that fire. Even Elon Musk hinted at his ambitions to turn Twitter into a one-stop-shop for just about everything.

There are still significant barriers to bundling a plethora of services into a single app, but that isn’t stopping companies from racing to be the one to do it. To the victor go the spoils.

The Resiliency of Life Extension

The concepts of immortality and age reversal have been a preoccupation of mankind since the dawn of time, so it stands to reason that technology that promises extra lifespan and quality of life continues to be compelling for individuals and investors alike.

Players in this space can approach life extension and anti-aging from a number of different angles, from supplements to tinkering at the cellular level.

Two high-profile examples in this space are Calico, which is a subsidiary of Alphabet, and the Jeff Bezos-backed Altos Labs. Other billionaires have expressed an interest in life extension as well, including Peter Thiel, who has definitive views on mortality.

I believe if we could enable people to live forever, we should do that. […] I think it is against human nature not to fight death. – Peter Thiel

In 2023, look for more investment and news from startups focused on gene therapy, genome analysis, regenerative medicine, or “longevity in a pill”.

Beyond Plastic: The Bio-Based Materials Boom

Public pressure is mounting for producers of consumer goods to change the way they manufacture their products.

The good news is that many of the largest producers of consumer packaged goods and apparel have some kind of plan in place to use more post-consumer recycled plastic in their products. The bad news is that not enough plastic is recycled globally for companies to source enough material to produce their products more sustainably. As a result, many companies are exploring the option of ditching plastic entirely.

For example, materials derived from seaweed are an active area of innovation right now. Mushrooms and algae are also commonly-used materials from nature that are being used to create biodegradable products. In one particularly interesting example, a company called MycoWorks recently began working with GM Ventures to explore the use of mycelium-based leather alternatives in GM’s vehicles.

While researchers and companies are just scratching the surface of what’s possible, consumers are likely to see more tangible examples of bio-based materials popping up in stores. After all, brands will be very eager to talk about their increasingly plastic-free product lines.

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