Macro Economic Factors Affecting the Video Game Console
MACROECONOMIC FACTORS INFLUENCING THE VIDEO GAME CONSOLE MARKET Demographic Factors: Age is the main demographic factor affecting the market for video game consoles although common misconceptions are that the market is mainly comprised of teenagers. Recent Studies shows that the largest market sector of video game console purchases are teenagers or young adults. ESA demographic data shows that America¶s average game player¶s age is 34 and the average age of game purchasers is 40 (see article x) Generational factors play a big role in the market sector of gamers who purchase more than one game console, buy the latest version and buy games into adulthood. In 2010 26% of gamers were over 50. There is a definite generational factor as many of the consumers were in their teens when the mass video gaming culture began and now are in their 40s or 50s and have retained their gamer status, therefore are also ready to adopt new products. Gender is another factor that should be noted. Female gamers are a large portion of the video console market although significantly less than their online gaming counterparts. ESA research predicts that 40% of video game players are females. Economic Factors: Household income ± studies have shown that video games in the toys and games market are able to gain a significant share of the market the larger the average household incomes are of a given market segment or particular region. For video games to comprise of 15% market share in toys and games of a given country, 60% of the population must earn incomes above US $15,000 (see figure x). Business cycle-The sale of consumer electronics andnovelty products are influencedby macroeconomic factors of a country. If there are recessionary or inflationary pressures, sales are likely to be affected sincechanges in consumers behaviour is determined by the perceived increase or decrease in the level of disposable income. This is, however, likely to have a short term impact and in the long run will