Video Game Market Segmentation

Video Game Market Segmentation Data

Video game market segmentation is constantly adapting with the changing video game market, but two distinct audiences spending roughly the same dollars now drive today’s market. Core gamers today bring in $22 billion in the US and Europe, and now account for 89 million different gamers. Broad market players spend $20 billion a year, but do so with a far larger customer-base: 208 million players.

The data below is compiled from industry research firm DFC Intelligence, including presentation comments from slides presented to Intel on July 16th, 2014.  The data points below are focused on North America and Europe only, based on all of 2013.

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Video Game Market Segmentation: Core Gamers (Top Tier)

Core gamers are often earlier adopters, purchasing new franchises like Watch Dogs on new consoles.
Core gamers are often earlier adopters, purchasing new franchises like Watch Dogs on new consoles.

Users: 89 million
Total Revenue: $22 Billion
Annual ARPU: $250

Age: 15-40
Gender: 95% M, 5% F
Demographics: Teenage kid, young professionals, dads
Platforms: PC, Xbox 360, PS3, Wii, iPhone, iPad, PSP/DS
Representative games: “Plays everything, all the time”

DFC Intelligence Notes:

  • “All walks of life; well accepted hobby”
  • “Broadband is life”

Video Game Market Segmentation: Broad Market Payers (Middle Tier)

Broad market players take less risks in purchasing new games, and prefer established franchises that are more likely to offer consistent quality, experiences or communities.
Broad market players take less risks when purchasing games, and prefer established franchises that are more likely to offer consistent quality, experiences or communities.

Users: 208 million
Total Revenue: $20 Billion
Annual ARPU: $100

Age: 8-50
Gender: 50% M, 50% F
Demographics: All demographics; “All walks of life”
Platforms: Wii, PS2, iPhone, iPad
Representative games: Madden, Angry Birds, FIFA, Plants vs. Zombies

DFC Notes:

  • “Will try anything but sticks to what’s easy to learn or has large community & support”

Video Game Market Segmentation: Players, Not Payers (Broad Tier)

Dubbed "Players, Not Payers," the broad tier of gamers spend far less than other market segments.
Dubbed “Players, Not Payers,” this broad tier of gamers spends far less than other market segments.

Users: 325 million
Total Revenue: $3 Billion
Annual ARPU: $10

Age: All ages, but may skew older
Gender: 30% M, 70% F
Platforms: iPhone, iPad, Browser
Networks: Social Network gaming (Facebook), MSN, Yahoo, Pogo, Minesweeper, etc

Video Game Market Segmentation
Video Game Market Segmentation

Source: DFC Intelligence

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