Handheld Video Game Sales Will Plummet

A report by Juniper predicts handheld video game sales will only make up 2% of the total game industry’s sales by 2018. The report states platforms like Nintendo 3DS and PlayStation Vita will barely have a presence in four years.

Analysts often note that  the adoption of tablets and smartphones could significantly damage handheld video game sales for both Nintendo and Sony.

CONSULGAMER highlighted challenges facing the Nintendo 3DS, particularly the surprisingly low level of third-party support compared to prior iterations of the hardware.

Third-Party 3DS Releases
The number of third-party titles for Nintendo 3DS is significantly lower than Nintendo’s prior handheld platform, indicating the potential for weak handheld video game sales. (More Info)

Handheld video game sales are already immaterial to some game publishers.

The report is also negative on the overall game industry, predicting revenues to decline 11% by 2018, from this year’s projected $46.5 billion to $41 billion in 2018.

Still, some video game segments will grow.  Cloud gaming, with forecasted revenue of $218 million this year, will grow into a billion dollar segment by 2018.

CONSULGAMER’s review of PlayStation Now, Sony’s cloud gaming service, predicted success for the platform if Sony could find the right value proposition.

PlayStation Now Racing
The compressed quality of PlayStation Now may not impress high-end consumers, but with the right level of pricing and convenience, it could win over a wide audience. (More Info)

The report can be purchased by Juniper Research for £2500.  (Data source)

Leave a Reply

Your email address will not be published. Required fields are marked *

Video game data and analysis from a consultant