Video Games in Canada

PROSPECTS

Strong performance for video games with consumers enjoying on-the-go gaming

Video games continued to dominate overall games and toys in Canada in 2018, recording double-digit current value growth, making it the strongest performing year of the review period. Nearly half of the Canadian population identifies as gamers.

Digital games continue to gain share to detriment of physical format

Physical games across the category (including console and computer software) continued to decline strongly due to the continued rising demand for digital downloads. The latter is increasingly favoured by gamers, as it allows them to gain instant access to games rather than having to wait to physically visit a store to make a purchase or for it to be delivered to their homes.

AR/VR remains niche but attractive to serious gamers

As the industry looks to growth of virtual reality moving forward, players are working towards adopting this evolving trend. Due to the experience created by the latest Pokémon Go, the trend for augmented reality also resulted in some interest amongst local consumers in AR/VR, with AR/VR headsets continuing to record positive growth; however, this was much slower compared to its impressive performance mid-review period when the technology entered the country.

COMPETITIVE LANDSCAPE

Nintendo gains leadership due to performance in static consoles

Video games hardware continued to experience a revival, supported by the high double-digit current value growth of static consoles. This performance was due to the launch of new products towards the end of the review period, particularly of Nintendo Switch in 2017 which went on to record phenomenal current value growth and value share gain in 2018.

Electronic Arts maintains leading position despite losing share

Electronic Arts maintained its leading position of video games software in 2018, despite losing value share. The player relies on its well-known games such as Fifa and Battlefield.

Smaller players continue to dominate online and mobile games

Apart from the presence of international players in video games such as Nintendo, Sony and Activision Blizzard Inc, there are emerging Canadian companies that are gradually starting to erode the share of the leaders. This is particularly the case for online games and the mobile format, as there are many small private games being developed in the country, which are able to market themselves online and appeal to the huge gaming population in Canada.

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