Handheld gaming devices in downward spiral thanks to mobile devices
Tablets and other mobile technology devices are killing the market for handheld gaming kit, according to a new report.While over 38 million handheld gaming devices from Sony and Nintendo are expected to ship in 2013, that maximum is significantly lower than the previous peak of 47 million units in 2008, stated ABI Research.
Unit shipments following 2013 are expected to decline slightly, but dedicated handheld gaming devices are a sustainable niche, with forecasts relatively flat through to 2017. However, smartphone and tablet use for gaming continues to expand, making the mobile gaming market an increasingly important companion to dedicated handheld gaming. Senior analyst at ABI Research, Michael Inouye, commented: 'Mobile devices will compete with dedicated handheld gaming devices, but select consumer segments like core gamers and those individuals who do not want or have a smartphone or tablet will still provide some demand. The addition of mobile gaming is not necessarily a zero sum situation; in fact, many feel there is plenty of room in the gaming market for both portable and mobile gaming.' Following an initially strong first quarter 2011 launch, Nintendo's 3DS experienced a far weaker second quarter, prompting the company to dramatically lower the price of the handheld (from under $249 to under $170). The lower price, with additional titles, spurred sales to over 15 million through the 2011 calendar year. In late 2011, Sony launched the Vita in Japan with a wider launch in February 2012 to decent sales, although the price might prove an issue for Sony as well, despite significantly more robust hardware. Inouye added: 'The mobile and tablet markets have increased consumers' price sensitivity. First party developers and key game franchises will be vital cogs for the industry in the future, since hardware alone is not going to cut it given the shorter upgrade cycles for mobile devices.'Recent announcements at E3 from Nintendo and Microsoft, coupled with past mobile-centric initiatives by Sony, make clear that mobile experiences will be integrated into 'dedicated' gaming experiences (both console and portable).