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Pc gaming market and e sports industry


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Unlike the broader PC market, which continues shrinking, gaming PC sales are projected to increase over the next couple of years. According to NVIDIA, PC gaming accounts for nearly 40% of the overall gaming business. This percentage is higher than those for consoles, phones, tablets, phones, or any other individual gaming fragment.

PC gaming has seen a renaissance, partly thanks to superior graphics and processing but also the meteoric rise of the eSports scene and free-to-play games. Jon Peddie, president of Jon Peddie Research (JPR), notes that “NVIDIA, Intel, and AMD have enthusiast CPUs and GPUs that are so powerful, when combined with SSD’s and fast memory they absolutely trounce the computing power and gaming capabilities of the newest console generation.”

Gaming has become one of the cornerstones of the entire home and personal PC market. $1000 video cards are flying off the shelves, exciting and demanding new technologies like 4K and VR are on the horizon, and gamers are upgrading in accordance. As major companies evaluate their marketing and R&D budgets, JPR is seeing more investment in gaming oriented designs, and more money spent advertising to this group of consumers. JPR estimated that the gaming hardware market is expected to grow to $30 billion by 2018.

Now, the PC industry is betting BIG on gamers and core gamers are expected to drive recorded growth for PC games. In this report, I hope you can learn how eSports are saving the PC industry and how PC hardware vendors can take advantage of this growing opportunity.

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Pc gaming market and e sports industry

  1. 1. PC Gaming Market & eSports Industry - The only BIG thing in the PC industry now Prepared by Kevin Huang Oct 30, 2015
  2. 2. Page  2 “Games are art” is action, not belief.
  3. 3. Page  3 Worldwide PC Shipments Decline Again in Q3 2015 Source: Gartner (October 2015)
  4. 4. Page  4 Jon Peddie, president of Jon Peddie Research (JPR), notes that “NVIDIA, Intel, and AMD have enthusiast CPUs and GPUs that are so powerful, when combined with SSD’s and fast memory they absolutely trounce the computing power and gaming capabilities of the newest console generation.” “Being able to drive 3840 × 2160 (4K) at acceptable frame rates is already a reality for the highest end configurations and the mass market is now able to push 2560 × 1440. PC Gamers with good displays are able to enjoy millions and millions of pixels more than console gamers get on HDTVs. This translates into being able to see more and a better gaming experience.”
  5. 5. Page  5 Intel Said
  6. 6. Page  6 Intel Said
  7. 7. Page  7 Intel Said
  8. 8. Page  8 NVIDIA Said
  9. 9. Page  9 NVIDIA Said
  10. 10. Page  10 PC – The Most Important Gaming Platform
  11. 11. Page  11 " is considered the gold standard in PC gaming and many prefer even faster speeds, at least twice that number if VR is involved. “ - Jon Peddie, President of JPR Gaming In 4K: The Future Is Now
  12. 12. Page  12 Gaming Hardware Market to Grow to $30B by 2018
  13. 13. Page  13 PC Gaming Market Landscape in 2017 by Segment Gaming Hardware Market to Grow to $30B by 2018 (continued) (numbers in millions)
  14. 14. Page  14 Gaming PCs – So Cool & Beautifully Designed
  15. 15. Page  15 Basic Parts of A Gaming PC
  16. 16. Page  16 Gaming PC Accessories
  17. 17. Page  17 Immerse Yourself In the Action with These Best Gaming Monitors THE NEXT BIG THING IN GAMING
  18. 18. Page  18 Impressive PC Case Mods – Beyond Your Imagination
  19. 19. Page  19 Major US Custom PC Builders
  20. 20. Page  20 The PC Industry Is Betting Big on Gamers “That will be comforting to Acer, Asus, and Lenovo in the near term, but eventually they'll all need to make the transition to having mobile PC lineups at least as strong as their desktop and laptop ranges — either that or they too might be swallowed up by the same profit black hole that already consumed Sony's PC division.”
  21. 21. Page  21 Core Gamers are Expected to Drive Record Growth for PC Games “The recipe that keeps PC gaming on top is simple: the platform is accessible to all markets, and especially so with the free-to-play and freemium content; the hardware continues to evolve with gamers’ lifestyles, offering more choice and freedom; and, due to the ubiquity of PC’s globally, it’s easier to share, communicate and be more sociable with friends and family. These same factors, in part, also help explain the meteoric rise of eSports.” “Much of the growth is driven by pure demographics. We continue to identify a core group of consumers for whom playing on the PC is a major pastime,” said DFC analyst David Cole. “This is, in fact, a fairly new demographic that skews highly male and is only increasing in buying power.”
  22. 22. Page  22 “ , which has become the only way to play some of the best-looking and most popular games in the industry and to enjoy some of the most cutting-edge features online gaming has to offer. And later this year, that will also be the only way to play high-quality virtual reality games, offering players the opportunity to strap on a headset and transport themselves to all manner of imaginary worlds.” There's another thing going the PC's way: A trend called -- competitive gaming between highly trained professional gamers -- has become an international phenomenon grabbing the attention of tens of millions of people. The top competitive games are available only on a PC: Riot's League of Legends and Valve's Dota 2. Playing Games on the PC Is Making a Comeback
  23. 23. Page  23 How eSports Are Saving the PC Industry PC gaming has been hounded by an ominous narrative for almost as long as it's existed: it's dying, soon to be replaced by smaller, more convenient, more consumer- oriented gaming devices, or even phones. Recently, this idea has completely gone out the window: “A handful of games are driving this enormous resurgence: Defense of the Ancients 2 (1,262,612 daily players), Counter-Strike: Global Offensive (819,902 players), and of course, the massive League of Legends which boasts an astounding 27 million daily players. Most of these games are MOBA (Multiplayer Online Battle Arena) style games. MOBAs are fast-paced, competitive, team-based action games that follow different (mostly free) business models and content delivery mechanisms. That free-to-play, pay for extras model keeps people hooked.”
  24. 24. Page  24 Resistance Is Futile: eSports Is Massive ... and Growing SO HOW BIG is this gaming thing? Let's start with this: , according to market research firm Newzoo -- meaning that if the eSports nation were actually a nation, it would be the fifth largest in the world. (They're coming for you next, Indonesia!) And while eSports have long been biggest in Asia, especially gaming-mad Korea, North America and Europe now claim 28 million eSports fans and the number is growing by 21 percent a year.
  25. 25. Page  25 TWITCH, a video-streaming site that boasts 55 million users, is arguably the most important contributor to eSports' recent growth. Offering streams of games and tourneys and access to gaming's stars, it's also where the next generation of would-be gamers post their own streams. And apparently someone's watching.
  26. 26. Page  26 THE GAMER STEREOTYPE? Young, single, male ... and living in some sort of basement. In actuality, according to Newzoo, more than half of American eSports fans are employed full time, 44 percent are parents and, perhaps most surprising, 38 percent are women (another study puts it at 44 percent). One part of the stereotype does ring true, though: eSports fans do tend to be young. Just 28 percent are over 35- which, of course, is a selling point to advertisers looking to reach the next generation of consumers.
  27. 27. Page  27 PEOPLE WATCH this thing? Well, in a word, yes. When Major League Gaming launched in the early 2000s, its tournaments played out in hotel ballrooms before ... dozens of fans. Today, eSports' biggest tournaments rival practically any sporting event. The League of Legends Championship sold out Staples Center in 2013, then sold out the 40,000-seat World Cup Stadium in Seoul a year later while drawing an online audience of 27 million -- more than the TV viewership for the final round of the Masters.
  28. 28. Page  28 PRESENTED WITHOUT comment: as an overall category, gaming has more YouTube followers than news, movies and education combined.
  29. 29. Page  29 MAMAS, DO let your babies grow up to be eGamers. These five, all members of team Newbee, totaled $5.03M for winning the 2014 Dota 2 title. The prize pool has increased by more than 580 percent since 2012.
  30. 30. Page  30
  31. 31. Page  31
  32. 32. Page  32
  33. 33. Page  33 Top 20 Core PC Games I Sept 2015 Based on number of unique game sessions in North America and Europe*
  34. 34. Page  34
  35. 35. Page  35
  36. 36. Page  36
  37. 37. Page  37 Who Is the Core PC/MMO Gamer?
  38. 38. Page  38
  39. 39. Page  39
  40. 40. Page  40 eSports Revenues to Hit $465M in 2017 Newzoo expects market to more than double, compares audience size to NFL The eSports market, already worth $194 million per year, is set to more than double in size by 2017 according to a "conservative scenario" from research firm Newzoo, which pins a predicted value of $465 million on the sector within two years.
  41. 41. Page  41 -
  42. 42. Page  42
  43. 43. Page  43 A Map of the eSports Market
  44. 44. Page  44
  45. 45. Page  45
  46. 46. Page  46 eSports Expand Into the Mainstream, and Sponsorship Dollars Follow The Coca-Cola Co. in 2014 is titling the Coke Zero Challenger Series, a new development series for the League of Legends Championship Series. The partnership supports the brand’s tie-in with video games and related platforms.
  47. 47. Page  47 Corporate Interest in eSports Is Largely Driven by Three Factors Access to a hard-to-reach demographic. Competitive gaming provides access to young adult males, a demographic that does not traditionally watch TV. Sixty-nine percent of PC/MMO gamers are men, with 21 percent between 26 and 30 years of age, according to Newzoo, a market research and consulting firm that specializes in the gaming community. A large participant base. The size of the electronic sports community is staggering. Case in point: 32 million people play League of Legends each month. Global reach. Electronic sports tournaments can provide sponsors global reach through live video streams of both online and off-line tournaments. Most tournaments stream competitions through their own web sites or Twitch.TV, a streaming platform dedicated to the gaming market. And viewership of live games is growing: The Electronic Sports League recorded 81.3 million view sessions on Twitch in 2013, up from 5.4 million in 2009. Electronic sports properties also can provide reach through social media. World of Warcraft has 5.3 million Facebook likes, League of Legends has 4.1 million likes while Dota 2 has 1.4 million likes.
  48. 48. Page  48
  49. 49. Page  49
  50. 50. Page  50
  51. 51. Page  51 Future of Gaming: 5 Exciting Emerging Trends 1. Immersive Gaming: The Return of Virtual Reality (VR) 2. Secondary Screens for Gaming
  52. 52. Page  52 3. Open-Source Gaming
  53. 53. Page  53 4. Augmented Reality (AR) Eventually we may even have a gaming session with wearable UI like Google Glass where you don’t even need to hold up a console or device, and playing a game almost feels like you’re on the ground in the gaming realm.
  54. 54. Page  54 5. Cloud Gaming With Cloud Gaming, we need not wait forever to get updates to high-quality games. It’s all in the cloud and all we have to do is connect to it with a stable Internet connection and play to our heart’s content. Games will also be cheaper and more easily accessible via computers and even tablets. How much longer need we wait for this? In August 2012, Sony has purchased Gaikai the world’s largest and most widespread cloud gaming service for $380 million and is incorporated it into PlayStation 4.
  55. 55. Page  55 Appendix
  56. 56. Page  56 At the Oculus Connect developer summit in Los Angeles, Oculus VP of product Nate Mitchell gave attendees a number of product updates. Most notable was the “Oculus Ready” program, which will help PC manufacturers denote which models will be able to deliver a satisfying VR experience when used with the Rift headset. Asus, Dell, and Alienware will all be releasing Oculus Ready configurations at what Mitchell termed “varying price points”—but notably, all three will have rigs for less than $1,000, and all three will have options as bundling options for Rift purchasers when the headset becomes available in the first quarter of 2016. 'Oculus Ready' PC Program Offers VR-ready Rigs for Less Than $1,000
  57. 57. Page  57 Acer to Attack Gaming Market with Predator Line of PC Products
  58. 58. Page  58 HP – Let the Games Begin HP Returning to PC Gaming Hardware Market with Omen HP dropped out of the gaming market years ago, but their new notebook marks a shift in the companies goals. The Omen is a 15.6″ laptop with an Intel Core i7 CPU, GeForce 860M graphics, 8GB of RAM, a 128GB SDD and a 1920 x 1080 display. Nothing overly fancy or innovative there, but it’s certainly going to pack enough performance punch to run high-end PC games. It’s milled from a solid piece of aluminum, with tapered edges and a speaker grill down each side. The keyboard features red LED backlighting and six programmable function keys. The whole unit is just 20mm thick and weighs 4.68 pounds (2.1kg). The Omen will be available from the 4th of November online and in retail stores a few weeks afterwards. Prices are expected to be $1,499 for the base model. It certainly looks gorgeous, but we’ll wait and see how it performs in benchmarks.
  59. 59. Page  59 Lenovo Eyes Up PC Gaming Market with New Y Series Crafted for the growing population of working gamers who now demand a powerful and stylish machine that can move with them through their life from day to play. The family of new Y series devices and accessories have been built to serve mature gamers in their professional and social life, says Lenovo.
  60. 60. Page  60 The Alienware Steam Machine Was Born Out of a Desire to Evolve the Gaming Ecosystem
  61. 61. Page  61 Steam Reportedly Raked in $1.5bn in Revenue in 2014 According to market data firm SuperData, they recently released numbers to The Know in which it was revealed that in 2014 alone, Valve managed to pull in about $1.5 billion in revenue from Steam. SuperData revealed that about $400 million alone was brought in by Valve’s own games such as DotA 2, Team Fortress 2, and Counter-Strike Global Offensive. Also given that Steam, just like most app stores, takes a 30% cut from sales of other games by other developers, it has been estimated that these royalties are around the $330 million mark. It’s interesting that despite the fact that games like DotA 2 are free, they still manage to pull in quite a bit of money, largely thanks to its in-game purchases for vanity items. Of course at the moment the king of MOBAs is still Riot Games’ League of Legends, which last we heard raked in a very cool $1 billion in 2014 alone, which is two-thirds of what Valve made on Steam overall. Multiplayer Online Battle Arena (MOBA) Massively Multiplayer Online (MMO)
  62. 62. Page  62 Amazon Enters PC Gaming Market, Seeks Game Developers
  63. 63. Page  63 Downloadable Titles Make Up 92% of PC Games Market Up from 48 percent of the market in 2010, thanks in large part to free-to-play. A full 92 percent of PC game sales in 2013 came from digital downloads, as DFC Intelligence recently told British tech site PCR…….. it lines up with other numbers reported throughout the industry. Last year (2013), Payday 2 publisher Starbreeze announced that 80 percent of its 1.58 million first-month sales came from downloads, for instance. And let's not forget the scores of PC games that are totally ignoring retail sales for 100 percent downloadable releases these days, from Dota 2 to Day Z. Download-dominated PC gaming is a newer phenomenon than some gamers might realize. As recently as 2010, analyst firm NPD was estimating that downloads made up only 48 percent of all PC game sales. One possible reason for the sharp increase over the last four years is money brought in from newly ascendant free-to-play and microtransaction-driven PC games. In April, a DFC report on the PC games market found that free-to-play games, especially MOBAs like League of Legends and Dota 2, were driving heavy increases in overall PC game spending, pushing it above overall console game spending for the first time in recent memory. The market for game downloads looks very different in the console space, where analyst firm EEDAR estimates that downloads make up less than 20 percent of game sales (though the group sees that proportion growing to 50 percent by 2018). Last month, EA revealed that "full game downloads" make up only 10 to 15 percent of its console game business. Despite the download's victory on PC, few gamers seem to have given up disc-based games entirely across the industry. An NPD survey earlier this year found that only 16 percent of US gamers played downloadable games exclusively across consoles, PC, and mobile.
  64. 64. Page  64 “The future of gaming isn’t mobile any more than the future of gaming is console or PC: the future of gaming is gaming. Devices that are getting increasingly good at talking to each other and developer tools that work across different platforms are only going to further unify what currently feel like disparate markets, and the games will follow. The companies that truly reap the benefits from that shift are going to be the ones that use their skill and knowledge of game design to figure out new experiences that gamers want, regardless of the platform — look at Minecraft, which is neither a mobile game nor a console game nor a PC game: it’s all three.” Mobile Isn't the Future of Gaming (And Consoles Aren't Either)