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(Press Release) NPD Releases "Online Gaming 2008" report

Courtesy of NPD.

For the console folks, 360 is understandably #1 for online gaming, and a very interesting nugget is that only 3% of folks own more than one next-gen system. That's obviously going to grow substantially over time, but one of the big outstanding questions is how much? Last gen was great for this statistic because PS2 was a must have, Nintendo was required for their IP, and Xbox was the choice for the best graphics and online play. This generation with less exclusivity, a larger percentage of casual gaming, and no console that's likely going to be "absolutely required" at this point, the multiple console owner percentage is one that bears watching. (IMO)

The NPD Group said:
AN all-time high of 72 Percent of the U.S. population reports that they play video games

Number of Online Gamers also up Relative to Total U.S. Population-
40 Percent in 2007 to 42 Percent in 2008

PORT WASHINGTON, NEW YORK, April 2, 2008 – According to The NPD Group’s recently released report, "Online Gaming 2008,” which analyzes the online gaming landscape and focuses specifically on consumers’ behavior, time and money spent in this market, overall participation in gaming rose in 2007 over 2006, from 64 percent of the population to 72 percent of the population. Of these, more than half say they play games online.

The PC platform continues to be the driving force in online gaming, with 90 percent of online gamers stating they use a PC to play games online, 19 percent claiming they use a video game system (console or portable) and 3 percent claiming they use a cell phone.

Four out of 10 online gamers are ages 2-17, driven heavily by kids ages 6-12. Kids ages 2 to 12 are driving more than 25 percent of online gaming, while 18-24 year olds only represent 10 percent of online gaming.

Among those who use a video game system for online gaming, Xbox 360 is the top system used, with 50 percent stating they play games online via that system. On average, Xbox 360 owners spend the most time per week using their 360s to play games online, followed by PC and PS3 owners using these respective systems for online game play.

According to the report, 13 percent of online gamers spend 20 hours or more per week on online gaming. Per platform, 33 percent of portable online gamers, 29 percent of console online gamers and 13 percent of PC online gamers are in this heaviest online gaming group.

At this point in the lifecycle of today’s video game consoles, multiple console ownership is low, with only 3 percent reporting that they own two of the three “next-gen” systems and only 2 percent claiming to own all three systems.

“Despite the buzz in the industry regarding online gaming, it is still relatively small compared to offline gaming,” said Anita Frazier, industry analyst, The NPD Group. “There is still a large, untapped market for gaming in general and online gaming in particular.”

Methodology
Data was collected via an online survey of 20,240 NPD Consumer Panel members ages 2 and older. Respondents age 2-12 were captured via surrogate reporting whereby the female parent (age 21-55) brings her child to computer to answer questions, either with or without parent’s assistance. In order to qualify as an online gamer, respondents had to use one or more of the following systems to play games online: Nintendo DS/DS Lite handheld system, Nintendo Wii, PlayStation 2, PlayStation 3, Sony PSP handheld system, Xbox, Xbox 360 or PC. Gamers overall (whether online or offline) were included in the study as well. Fieldwork was conducted from January 11 –February 5, 2008.

About The NPD Group, Inc.

The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,600 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com/
 

Stumpokapow

listen to the mad man
Self-selection online panel? I mean, the sample size is surely enough to extrapolate, but the sampling methodology is so weak and details not provided that the data means a good deal less :(
 

methane47

Member
Hmmm this is such a bullcrap figure..

First of all... what is their definition of "plays video games"
Is that... a person who has done so before at some point or time in their life? Or someone who still plays casually.

Are they counting virtual representations of card games as video games? AKA poker? Should that count as a video game at all?

"Playing video games" seems so vague that this statistic is pointless...

As some people say 83% of all statistics are just made up.
 
methane47 said:
Hmmm this is such a bullcrap figure..

First of all... what is their definition of "plays video games"
Is that... a person who has done so before at some point or time in their life? Or someone who still plays casually.

Are they counting virtual representations of card games as video games? AKA poker? Should that count as a video game at all?

"Playing video games" seems so vague that this statistic is pointless...

As some people say 83% of all statistics are just made up.

This is simply the PR of the report. All of the questions you have are answered by the quite lenghty report. It goes over revenue, time spent, demographics, market shares, definitions, etc.
 
methane47 said:
Are they counting virtual representations of card games as video games? AKA poker? Should that count as a video game at all?

How is a virtual representation of a card game different from a virtual representation of football or soccer?
 

Mashing

Member
methane47 said:
Hmmm this is such a bullcrap figure..

First of all... what is their definition of "plays video games"
Is that... a person who has done so before at some point or time in their life? Or someone who still plays casually.

Are they counting virtual representations of card games as video games? AKA poker? Should that count as a video game at all?

"Playing video games" seems so vague that this statistic is pointless...

As some people say 83% of all statistics are just made up.

Poker is non-game confirmed. You heard it here first!
 

methane47

Member
sonycowboy said:
This is simply the PR of the report. All of the questions you have are answered by the quite lenghty report. It goes over revenue, time spent, demographics, market shares, definitions, etc.

Oh I see... ok then.... is this report available to the public?

How is a virtual representation of a card game different from a virtual representation of football or soccer?

Well... the reason why people play is different. People play virtual representations of football or soccer for entertainment only..

while some people play virtual poker for practice for the real thing. to practice betting strategies etc etc. (I'm not talking about the free virtual poker games)....
No NFL player plays madden for practice.

If something is a virtual representation of something else... does that immediately qualify it as a video-game? For example the slot machines in casino's now.. they are mostly virtual.. does that make them video-games?
 

squatingyeti

non-sanctioned troll
methane47 said:
Are they counting virtual representations of card games as video games? AKA poker? Should that count as a video game at all?

WOW! I thought someone else had the most idiotic statement locked up for the 2nd quarter already. However, you certainly delivered a worthy challenger.
 

TheExodu5

Banned
methane47 said:
Are they counting virtual representations of card games as video games? AKA poker? Should that count as a video game at all?

No they don't count as video games. After all, it's not like you play card games.

Classic_Gs said:
Their data was collected via survey so their report isn't worth more than salt.

And how else would you suggest such statistics be gathered?
 
methane47 said:
Oh I see... ok then.... is this report available to the public?



Well... the reason why people play is different. People play virtual representations of football or soccer for entertainment only..

while some people play virtual poker for practice for the real thing. to practice betting strategies etc etc. (I'm not talking about the free virtual poker games)....
No NFL player plays madden for practice.

If something is a virtual representation of something else... does that immediately qualify it as a video-game? For example the slot machines in casino's now.. they are mostly virtual.. does that make them video-games?

He makes a great point. I would never consider someone that only plays a virtual card game someone that plays video games.
 

TheExodu5

Banned
MiamiWesker said:
He makes a great point. I would never consider someone that only plays a virtual card game someone that plays video games.

And some people would never consider Wii sports a video game.

Objectively, these are all video games.

It's like people trying to classify all different types of metal into categories like heavy metal, hair metal, metalcore, death metal, etc, etc, etc, etc....they're all metal!
 

andthebeatgoeson

Junior Member
MiamiWesker said:
He makes a great point. I would never consider someone that only plays a virtual card game someone that plays video games.
Yeah, but why bring that point up in this thread? The article states:
Among those who use a video game system for online gaming, Xbox 360 is the top system used, with 50 percent stating they play games online via that system. On average, Xbox 360 owners spend the most time per week using their 360s to play games online, followed by PC and PS3 owners using these respective systems for online game play.
Half the people who stated they play online games use the 360. A console known for it's hardcore titles. That's not even counting Wii and PS3. I would say you could just as easily make the assumption that this poll hit hardcore gamers more than the typical person who plays online poker.

And then, at the end of the day, even if a huge group of people are playing those types of games, we have to kinda accept it. MS has with poker, spades and such showing up on Arcade.
 

RJT

Member
skinnyrattler said:
Yeah, but why bring that point up in this thread? The article states:

Half the people who stated they play online games use the 360. A console known for it's hardcore titles. That's not even counting Wii and PS3. I would say you could just as easily make the assumption that this poll hit hardcore gamers more than the typical person who plays online poker.

And then, at the end of the day, even if a huge group of people are playing those types of games, we have to kinda accept it. MS has with poker, spades and such showing up on Arcade.
The PC platform continues to be the driving force in online gaming, with 90 percent of online gamers stating they use a PC to play games online
 

TheExodu5

Banned
skinnyrattler said:
Half the people who stated they play online games use the 360. A console known for it's hardcore titles. That's not even counting Wii and PS3. I would say you could just as easily make the assumption that this poll hit hardcore gamers more than the typical person who plays online poker.

You read that wrong I think. Half of the people who play console games online use the 360. The PC is by far the most widely used platform for online play. There's no way half of the people in the survey even own 360s anyways.

Actually, here it is:

The PC platform continues to be the driving force in online gaming, with 90 percent of online gamers stating they use a PC to play games online, 19 percent claiming they use a video game system (console or portable) and 3 percent claiming they use a cell phone.

This means that half of that 19% plays the 360 online. So 9.5% of online gamers are using their 360 to play online. Keep in mind though, that the vast majority of online PC games would be casual games anyways.
 

svenuce

Member
methane47 said:
Oh I see... ok then.... is this report available to the public?

It's available to those who've paid for it. That's what research companies do... they conduct research and then charge for the reports.
 

theguy

Member
According to the report, top genres played online include Card/puzzle/arcade/word and, yes, Gambling/casino/poker. Yes, NPD made sure this was all clear.
 
Xiaoki said:
The word salary comes from the latin word for salt.

I had almost completely forgotten about that little bit of irony. The etymology behind certain words sure are interesting sometimes.
 
Four out of 10 online gamers are ages 2-17, driven heavily by kids ages 6-12. Kids ages 2 to 12 are driving more than 25 percent of online gaming, while 18-24 year olds only represent 10 percent of online gaming.

That's... pretty worrying actually, given how few games are even remotely close to being COPPA compliant outside of a token 'are you over 13? click here if you are' type agreement.
 

methane47

Member
theguy said:
According to the report, top genres played online include Card/puzzle/arcade/word and, yes, Gambling/casino/poker. Yes, NPD made sure this was all clear.

Another question... Did they record percentages/amounts of people that play gambling or casual/puzzle games exclusively?

I mean... I'm sure every single person here on gaf plays a PC puzzle game once in a while... But t is that 90% number equivalent to to 90% play PC games exclusively? and 9% play Xbox Exclusively? etc etc?

Or are they saying that 90% of ALL online gamers play PC games... and 9% of all online games play Xbox... and 5% of all online gamers play PS3.. etc etc etc...
 

theguy

Member
Classic_Gs said:
Their data was collected via survey so their report isn't worth more than salt.

It's unfortunate that there are so many out there with absolutely no understanding of how these things work.
 

TheExodu5

Banned
theguy said:
It's unfortunate that there are so many out there with absolutely no understanding of how these things work.

I don't think it's so unfortunate...I get a good laugh every time a comment like that is posted. :lol Their 'mis'education is well worth my enjoyment.
 

ToxicAdam

Member
It's pretty incredible (but not surprising) to see how "hooked up" our youth are. It should be pretty frightening (and exciting) to see what they are able to create when they are in their 30's and 40's and in positions of power to create games.

It will probably make Home/Second Life and WoW look like early BBS games (in form and function).

Which will be awesome, because we will be hitting retirement age and be able to enjoy all these awesome on-line worlds.
 

larvi

Member
TheExodu5 said:
This means that half of that 19% plays the 360 online. So 9.5% of online gamers are using their 360 to play online. Keep in mind though, that the vast majority of online PC games would be casual games anyways.

Where are you getting the stats that the vast majority of the online PC games are casual? Or is that just an assumption on your part? There are online poker players that I would consider much more of a hardcore gamer than your average Halo player.
 

theguy

Member
methane47 said:
Another question... Did they record percentages/amounts of people that play gambling or casual/puzzle games exclusively?

I mean... I'm sure every single person here on gaf plays a PC puzzle game once in a while... But t is that 90% number equivalent to to 90% play PC games exclusively? and 9% play Xbox Exclusively? etc etc?

Or are they saying that 90% of ALL online gamers play PC games... and 9% of all online games play Xbox... and 5% of all online gamers play PS3.. etc etc etc...

Yes, it's clear in the report. I'm not sure I follow the rest of your question but respondents were permitted to choose all of the platforms they use to play games online, as well as the types/genres they play online. It's also important to note that NPD was very careful to educate the panel members on online gaming so that, for example, they wouldn't confuse online purchases (digital downloads and the like) with actual online gameplay.
 

Cheeto

Member
methane47 said:
Are they counting virtual representations of card games as video games? AKA poker? Should that count as a video game at all?
Eye of Judgement isn't a video game?
 

methane47

Member
WhatRuOn said:
Eye of Judgement isn't a video game?

Do these count as video games?

casino.600.1.jpg


I was talking about card games as in gambling
 

Cheeto

Member
methane47 said:
Do these count as video games?

[IMG.]http://graphics8.nytimes.com/images/2006/04/12/business/casino.600.1.jpg[/IMG]

I was talking about card games as in gambling
I see video screens, and buttons for interaction...soooo, yea?
 

Justin Bailey

------ ------
Wait so NPD didn't personally visit every home in the US and watch what kind of games they play for 2 weeks? Report = Worthless.
 

TheExodu5

Banned
larvi said:
Where are you getting the stats that the vast majority of the online PC games are casual? Or is that just an assumption on your part? There are online poker players that I would consider much more of a hardcore gamer than your average Halo player.

It's a commonly accepted assumption that the majority of online PC gaming is casual. Don't forget, this includes flash games from sites like MiniClip.com as well, which is why you see a majority of online PC gamers being between the ages of 2-12, according to this report.
 

theguy

Member
Kobold said:
WTF? Two year olds have the cognitive skills of a small dog, how would they play online?

You don't know my 3-year-old nephew. Last year, he was smart enough to watch my brother type in the password on his computer, memorize it, and use it to access games later. The same for his XBL account and even the DVR passcode for on-demand movies (my brother had a charge of over $100 one month for a Shrek movie and couldn't figure out why. The boy was eventually caught :) The little bastard even beat me at a long game of Virtua Fighter but only because he was so good at memorizing the button sequences for special moves.

Today's kids (not all of them, mind you) are quite good at things like this.

Regarding those 2-year-olds that are ... less developed, they play games with the help of their parent(s).
 

larvi

Member
TheExodu5 said:
It's a commonly accepted assumption that the majority of online PC gaming is casual. Don't forget, this includes flash games from sites like MiniClip.com as well, which is why you see a majority of online PC gamers being between the ages of 2-12, according to this report.

Ok, I guess my definition of an online game is different then, unless that flash games has some sort of interaction with others playing the same game I wouldn't consider it online. A flash game that gets downloaded from a website and plays locally in your browser is just another form of digital distribution and not really an online game even it it has online leaderboard tracking in my opinion.
 

TheExodu5

Banned
larvi said:
Ok, I guess my definition of an online game is different then, unless that flash games has some sort of interaction with others playing the same game I wouldn't consider it online. A flash game that gets downloaded from a website and plays locally in your browser is just another form of digital distribution and not really an online game even it it has online leaderboard tracking in my opinion.

Well it's not a multiplayer game for sure...but I do believe NPD considers it as an online game in these reports. It would definitely explain, as I said, why the majority of online PC gamers in their report is in the 2-12 age group (what else would they be playing online anyways?).

Of course, the reports should contain a detailed breakdown of the statistics, so we could isolate the different types of online games and get statistics better suited to represent the traditional video games online community.
 

shintoki

sparkle this bitch
methane47 said:
Hmmm this is such a bullcrap figure..

First of all... what is their definition of "plays video games"
Is that... a person who has done so before at some point or time in their life? Or someone who still plays casually.

Are they counting virtual representations of card games as video games? AKA poker? Should that count as a video game at all?

"Playing video games" seems so vague that this statistic is pointless...

As some people say 83% of all statistics are just made up.
I didn't think someone would cry over this:lol

Anyways, just goes to prove. The Casual game market is that massive.
 
Four out of 10 online gamers are ages 2-17, driven heavily by kids ages 6-12. Kids ages 2 to 12 are driving more than 25 percent of online gaming, while 18-24 year olds only represent 10 percent of online gaming.
so basically, 50% of online gamers are 25+ or 0-1?
 

TheExodu5

Banned
The Faceless Master said:
so basically, 50% of online gamers are 25+ or 0-1?

Fits in with the whole casual gaming idea. As I recall, NPD reports in the past have also stated that the majority of online gamers were female as well (PC gamers at least).
 
Kobold said:
WTF? Two year olds have the cognitive skills of a small dog, how would they play online?

Have you seen Noggin, Sprout, and Nick Jr TV? They advertise thier sites like crazy and have all sorts of games available for toddlers. Years ago, we might not consider it gaming per se, but one of the reasons casual gaming is so big is that folks from a younger age than ever before are gaming.

It's actually kind of scary how powerful these IP's are at hooking children. Dora, Backyardigans, and obviously the Disney stuff have all really embraced online "casual gaming".
 

Agent Icebeezy

Welcome beautful toddler, Madison Elizabeth, to the horde!
I have three children, all girls. My twin 8 year olds play on Millsbury.com and my 1 year old bangs on the keys when I let her go to babygamer.com
 

andthebeatgoeson

Junior Member
TheExodu5 said:
You read that wrong I think. Half of the people who play console games online use the 360. The PC is by far the most widely used platform for online play. There's no way half of the people in the survey even own 360s anyways.

Actually, here it is:



This means that half of that 19% plays the 360 online. So 9.5% of online gamers are using their 360 to play online. Keep in mind though, that the vast majority of online PC games would be casual games anyways.
Oops, my bad.
 
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