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Revenue in enthusiast market will grow significantly despite lost market share

Computer and hardware manufactures know that consumers willing to spend vast sums of cash can most often be found in the enthusiast and gamer markets. These people will spend hundreds of dollars on the latest video cards and processors in pursuit of every last ounce of performance.

Jon Peddie Research (JPR) has announced new data on the PC gaming hardware market and the worldwide DIY market segments of the computer industry. According to JPR, 46% of the dollars spent in 2009 on gaming-motivated PC hardware was from the enthusiast class. The money was spent on gear like boutique PCs, high-end processors, and SSDs.

JPR is predicting that a shift in the product mix is coming to the PC gaming market. By 2013, the enthusiast class will lose market share to the performance and mainstream classes. However, the money spent in the enthusiast hardware segment will grow significantly from $9.5 billion to almost $12.5 billion in 2013 making the enthusiast class one of the most important for manufacturers.

JPR video game analyst Ted Pollak said, "PC hardware has caught up to most of the software and people are able to play computationally intensive games on Performance level systems. Performance systems now even support high resolution for all but the most demanding simulations and FPS's. The frequency of Direct X updates is also driving some people toward mid-range GPU's. Some gamers are buying Performance GPUs at a higher refresh rate to engage the latest Direct X version, instead of a longer term investment for Enthusiast GPU's."

JPR president Jon Peddie said, "Gamers are ordering, building, and modding their rigs with components that just a few years ago were simply not available with any economy of scale. SSD's, water cooling, gaming mice and keyboards and other components have come to the Performance class and gamers are starting to snap them up. "

The firm also announced that the global market analysis for DIY PC builds covering gamer segments and business segments has predicted robust growth as well. The market will be worth about $10.4 billion in sales annually and much of the sales will be driven by businesses looking to get better performance from their enterprise applications.



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Multi-platform gaming drives some of this
By nafhan on 3/24/2010 9:37:08 AM , Rating: 2
I think some of this is driven by multi-platform game development and the console release cycle. At this point, the consoles are 4-5 years into their life cycles. PC's have evolved considerably during that time, and even lower mid-range gaming PC's have no problem playing ports.
If the cycle continues, next gen consoles will also come with correspondingly more resource hungry multi-platform games, and a big jump in PC gaming hardware will be required to handle the PC versions of those games.




By inperfectdarkness on 3/24/2010 1:18:55 PM , Rating: 2
next gen consoles are going to be significantly pricier. or if not next-gen, the generation after that. less "enthusiast" class PC consumers = higher cost of parts & slower trickle-down. the impetus to buy a new console will be moot when the performance offered is seen as similar to the advancement of the Wii's hardware over the GCN--little to nothing.


By DanNeely on 3/24/2010 4:40:26 PM , Rating: 2
Total sales volume for enthusiast parts will still be going up. They're losing share because more mainstream parts are growing faster. More sales of each type will spread the R&D dollars across more customers which should result in price savings at all price points.


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