The Fight for Smart Speaker Market Share
Tech companies are betting that the future of personal computing will be driven by the sound of your voice.
If they’re right, this early stage of smart speaker adoption will have a massive impact on future profits. Switching smartphone brands is relatively straightforward, but switching an entire voice assistant ecosystem? That’s not quite as easy.
Voice Assistants like Siri and Alexa will transform behavior inside the home. At the center of that behavior is a smart speaker, serving as the hub of a connected lifestyle.
– Andy Chambers, Vice President of Connected Home, Assurant
Today’s infographic is an overview of the rapidly expanding smart speaker market, and how the major players in the space are competing for critical early market share.
Moving towards Majority
Adoption of smart speakers really began to gain traction with consumers in 2018, when the percentage of American adults with such a device passed the 20% mark. Today, the U.S. adoption rate sits at about 25%, and by 2022, it’s expected to more than double to 55%.
In just one year, China’s global share of the smart speaker market went from almost zero to 30%, and the country’s smart home market was valued at over $7 billion. Companies like Baidu and Alibaba are fighting their own battle for domestic market share.
Amazon’s Head Start
It has now been almost five years since Amazon announced Alexa and the Echo to the world, kicking off the age of the smart speaker.
The sting of Amazon’s failed foray into the smartphone market was still fresh, and the initial reaction to a device listening inside the home was mixed. That said, Amazon’s huge built-in customer base and two-year head start was enough to bag a hefty portion of the smart speaker market. Now, other brands are playing catch-up.
Here’s a look at U.S. smart speaker market share by device:
|Company||Device||Voice Assistant||Market Share|
|Amazon||Echo or Plus||Alexa||23.2%|
|Home Mini||Google Assistant||11.2%|
|Home Hub||Google Assistant||1.2%|
|Home Max||Google Assistant||0.2%|
The Fight is Heating Up
Companies are responding to Amazon’s market dominance in different ways.
Apple recently dropped the price of its HomePod smart speaker to $299, a rare price cut for a company that is used to people lining up to buy its products. Unlike its competitors, Apple can’t go all-in on using the device as a “loss leader” to support advertising or e-commerce. HomePod is positioned as a more premium product, but price will be a sticking point for many.
Google, on the other hand, is taking a drastically different approach. The company released the Google Home Mini as a cost effective entry point for consumers looking to try out a voice-directed device.
As well, Google partnered with Spotify to offer Home Minis as a free promotion for Spotify Premium customers. Spotify’s premium userbase is nearly 90 million, so if even a fraction of users take the free offer, a massive influx of Google smart speakers will enter the market.
Over the last year, Amazon saw over 10% of its market share chipped away by competitors, and Google accounted for about half of that loss.
What’s Next? It’s Hard to Say
With the promise of future connected home profits on the line, it’s hard to say what lengths companies will go to outmanoeuver each other. One thing is clear though, the overall smart speaker market is still in the midst of a major growth cycle, and we’re just seeing the beginning of what’s possible with voice-directed devices.
Ranked: The Best Selling Video Games in History
This chart shows the top ten best selling video games, ranked by software units sold. Six of them have been released in the last 12 years.
Ranked: The Best Selling Video Games in History
It’s a good time to be a video game fan. Not only is the gaming industry booming and projected to grow to $320 billion by 2026, but every year is bringing new evolutions in the medium.
2022 saw massive launches in both games (Elden Ring and God of War Ragnarök) and media based on games (the films Uncharted and Sonic the Hedgehog 2). 2023 has already seen the release of major flagship TV series based on a game, HBO’s The Last of Us, and the much-anticipated The Super Mario Bros. Movie is slated to release in April.
But which game is the best, or most successful? That debate may never end, but from company reports and sales data aggregated by Wikipedia, Samuel Parker’s chart of the most-sold video games as of March 3, 2023 can at least tell us which ones have been the most popular.
Top Ten Video Games Sold in History
The best selling video game didn’t need multimillion dollar budgets, sixty-hour narratives, or celebrity voice actors and ad spots. The independently-developed (indie) Minecraft, with its pixelated blocks, takes the top spot on this list.
|Rank||Game||Sales (units)||Year Released||Developer|
|3||Tetris (EA)||100.0M||2006||EA Mobile|
|5||PUBG: Battlegrounds||75.0M||2017||PUBG Corp|
|6||Mario Kart 8||60.5M||2014||Nintendo|
|7||Super Mario Bros.||58.0M||1985||Nintendo|
|8||Read Dead Redemption 2||50.0M||2018||Rockstar|
Minecraft sold more units than the combined forces of Grand Theft Auto 5 (#2) and Red Dead Redemption 2 (#8), both made by industry giant Rockstar. Its immense popularity has been credited to its simple gameplay (no goals), creative structure (build anything), and engaged community with player-run servers and additional feature creations (known as mods).
Another simple favorite, Tetris, comes in at third place with 100 million units sold of its 2006 re-release. Millennials continue to make up a large chunk of the video game playing demographic which might explain Tetris’ sales.
But newer games are making up the majority of sales records. PUBG: Battlegrounds, a battle-royale shooter game which helped popularize the genre (and eventually its competitor Fortnite) asserts its popularity at #5. That puts it well ahead of the better-known shooter Call of Duty, even despite PUBG being banned in a number of countries for the alleged impact on the mental health of gamers.
The oldest game to make the list is Super Mario Bros. (#7), apt considering it is credited with reviving the video game industry after it crashed in 1983. The original staple side-scroller has sold 58 million copies worldwide.
Though the top selling games span various series of games, a few developers managed to repeatedly find success.
|Developer||Top 20 Best-Selling Games|
Japanese video game titan Nintendo developed three games (Super Mario Bros., Mario Kart, Wii Sport/Fitness) in the top 10 and another eight in the top 20. That’s not including its co-ownership of Pokémon, the world’s highest-grossing media franchise.
American publisher Rockstar Games also managed to score multiple hits, though its longer development cycle necessary to create cinematic games gives it fewer potential candidates. That might change with the much-anticipated GTA 6 reportedly in production.
Best Selling Genres
The most popular genres in the top 10 give players the freedom to impose their will upon the world and pursue objectives at their leisure:
Two games (Minecraft, Terraria) are classic sandbox games, where worlds are procedurally generated and there are no gameplay goals. Another two (GTA 5, Red Dead Redemption 2) are in the adjacent open-world genre, with a combination of sandbox elements and a narrative structure.
However, with new games launching and selling millions of units every year, new entrants to the top 10 list of best selling video games of all-time seems likely. How will these developers, genres, and games fare over time?
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