Video Games in France

PROSPECTS

Value growth to decline going forward as the impact of Nintendo Switch weakens

After the strong retail value performances of 2017 and 2018, growth is set to return to more normal rates over the course of the forecast period. The exceptional performance of Nintendo Switch drove growth of video games at the end of the review period, with games for the consul taking 10 of the top 20 positions.

Digital and mobile video games outperform physical

Digital video games continued to outperform physical formats in both computer and console games in 2018 in terms of sales and retail value growth. Digital gaming is not only cannibalising sales of physical formats, it is also driving overall sales of video games.

Spectacular growth of AR/VR headsets over

Fewer toys-to-life or virtual reality games were introduced in 2018, with the notable exception of Starlink: Battle for Atlas by Ubisoft at the end of the year. Players are assessing the potential here, although not yet excluding further investments.

COMPETITIVE LANDSCAPE

Strategic thinking key to Nintendo’s success

Nintendo Switch instantly became the best-selling video game upon its launch in 2017, and remained so in 2018. The product was widely received as an innovative, well-designed console, offering a premium appearance at an attractive price point.

Competition intensifies with new players and game titles

Video games is a highly fragmented category in terms of the number of products and brands available. Many new players, such as Playrix Entertainment, Capcom Entertainment France and I Got Games Inc entered at the end of the review period and took share from some of the leading players.

Companies widen their target audiences with innovative new ideas

Many companies are looking to increase sales in the highly competitive video games category by widening their target audiences by entering new product groups. Ubisoft is a good example with its entrance into toys-to-life – physical figurines which interact with the online game.

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