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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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RE: Soo PC gaming isn't dead or dying?
By meepstone on 3/24/2010 11:49:13 AM , Rating: 1
I know game developers and the RIAA blame piracy as the only reason they lose sales/revenue... but were these people who did download pirated copies ever really going to spend money for the products to begin with?

They always claim lost sales, but how much is actually lost...?

By themaster08 on 3/24/2010 11:55:31 AM , Rating: 1

The less work they feel they need to do, the better for them. After all, consoles have a larger user base than the PC alone, so they develop games for consoles and leave PC gamers in the dust with shoddy ports or no game whatsoever.

They will always throw the piracy card, but it's really wearing thin. We all know what it's all about. Laziness.

RE: Soo PC gaming isn't dead or dying?
By artemicion on 3/24/2010 2:16:24 PM , Rating: 2
Anecdotally, I know lots of people that pirate computer games but don't pirate console games. It's "easier" in the sense that pirating games on the computer doesn't involve anything "new". It's the same find, download, and install model that has been used for years. On the other hand, each console requires learning new hardware mods. Even within a console generation, new hardware revisions require different mods. Sure, if you took the time to learn how to do it, it's probably really easy. But just the effort to research which xbox revision you have, what chipset, what dvd-rom, etc. can be exhausting. Then the next generation comes and you have to do it all over again.

That, combined with the chance of getting your Xbox banned from Live is enough to deter a significant number of people from pirating games. Is your modded console going to be able to play future games? What happens if there's a major firmware update? What if the firmware update is required to play the next best game? What if you need to connect to Live to patch a game? What if you want to connect to Live to download DLC? Is your console going to get banned/bricked?

100% secure? No. Do a lot of people still pirate on consoles? Yes. Is the console overall, more secure than PC? I'd bet money on it.

Combine THAT with the fact that development is probably vastly easier on consoles (you're programming for a single hardware platform, contrasted with debugging your game on a dizzying array of hardware configurations on the PC) is enough to motivate most would-be PC devs from jumping ship.

By GodisanAtheist on 3/24/2010 6:42:11 PM , Rating: 2
I agree with all your points and would like to add that there is a kind of "armchair libertarian\Wild west" attitude about old school computer geeks in relation to those that grew up on console gaming. The problem lies in the different gaming cultures of PC Gamers and Console Gamers.

To an old school PC Gamer (they guy that spent his weekend resolving IRQ conflicts between his newfangled CD Drive and his Soundblaster 16 card) its the kind of attitude that says "if you can't properly protect your game, why SHOULDN'T I take advantage of it?" and in the same breath says "if your protective schemes inconvenience me, I'll make my way around them."

Console gamers have largely played within the bounds of the environment set-up for them, and are more likely to tolerate or accept rules and regulations placed on them by whatever provider.

Its like the difference in cultures between a lawless every-man-for-himself wasteland and a government holds your hand when you pee type of nanny-state (to use hyperbole to stress the point).

"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins

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