In its recently launched report, Jon Peddie Research (JPR) is projecting that Android will drive video gaming on HDTVs for millions of customers by 2017.
Based on our extensive market research, the Playstation 4, Xbox One, and the Nintendo Wii U are expected to continue to be the dominant platforms for dedicated and entrenched console gamers. However, Android console offerings from Amazon, Google, Nvidia and others are projected to grow at a much faster rate, and offer the casual to mid-core gamer an affordable way to play from the couch.
Android consoles can take the shape of a set-top-box, micro-console, specialty tablet, or multipurpose device like the Shield from Nvidia. The common thread being they are all designed for TV gaming.
I beieve that much of this phenomenon can be traced to the incredible leaps in general and graphics oriented processing power of the mobile chipset industry. Companies like Qualcomm, Nvidia, Imagination Technology, and Samsung are improving the capabilities of mobile chipsets by leaps and bounds.
The mobile world is moving at lightning speed as it adds features for movies, gaming, and light content creation. 4K video is already a reality and it seems there are no boundaries on the public’s appetite for better graphics and video.
The console market in general has recently come under pressure from tablets and PC gaming. However the monetization of the hardcore console players will keep the business model for the top end going. Over time, the broader base of console gamers will likely consider Android, cable box, and other types of consoles such as the Sony Vita TV for more casual to mid core pursuits. Apple is always a potential threat as well.
The market will expand further as China opens its doors to traditional (but locally built) consoles, which will cannibalize more of the lower end PC gaming sales. China has a potential console market of 50 - 100 million gamers who would prefer to play on TV versus the traditional desktop setup. The middle class have increasingly more disposable income and mobile devices, causing the role of the internet café to lessen.
The video game and simulation market has been estimated to be a $100 billion high risk, high stakes industry with a fast changing landscape. It is critical for companies in the gaming market to understand the emerging product segments in the console marketplace, how they relate to each other, and how the market is changing.
Go to Console Gaming Hardware Market Study 1H' 2014 to get access to the full report.