PC game market decline in SA: report

PwC recently released their annual analysis of the South African entertainment trends in their 4th Annual South African Entertainment and Media Outlook: 2013 – 2017 forecast.

The reports showed that the SA PC gaming market is slowly declining while the console and mobile market is still on a growth trend.

Speaking at the South African launch of the Nintendo 2DS on 24 October 2013, PwC Associate Director Charles Stuart took the opportunity to highlight some of the key findings and important trends in the industry.

According to their statistics there is a prominent increase in black middle class South Africans; growing from 1.7 million in 2004 to 4.2 million in 2013, while the number of white middle class South Africans remain steady at 3 million.

With the increase in the number of South Africans who can afford smartphones and tablets came a boom in the amount of mobile video games being played on these devices.

While more casual gamers are tapping away at virtual pets and farm animals on their smart-devices, the console market is still showing gradual growth and is expected to share the same market share as mobile gaming by 2017.

Video games market 2008 - 2017
Video games market 2008 – 2017

PC gaming revenue is continuing to decrease both locally and globally and is expected to continue deteriorating, having peaked in 2012. This is largely due to the shift in gaming habits; more people are playing casual games on PC’s via Facebook instead of buying retail or digital games.

Not surprisingly the level of piracy in PC gaming is also to blame for the rapid deterioration of the platform, said PwC.

In SA, PC gaming revenues are expected to drop in value from R394 million at their peak in 2012 to R358 million by 2017, reports PwC.

By 2017, digital games revenue in South Africa will represent 50% of all PC games revenue, compared with an average of 83% globally, said PwC

PC and console market in SA
PC and console market in SA

PwC also identified a few interesting traits of consumers that any video game developer or hardware manufacturer should take note of:

  • Video game consumers are connected to each other and can influence each other’s purchasing choices.
  • Consumers do not mind paying for quality content or services.
  • Video gamers consider their favourite pastime as time allocated to themselves but expect to do so with other players – either socially or competitively. Online gaming has transformed a traditionally solitary activity into a shared experience.
  • New changes to playing experiences have come to light: Video Gamers seek multi-platform and multi-device support for their favourite videogames.
  • Targeted advertising in and around video games is inevitable and as long as it’s relevant and worth-while it won’t upset too many consumers.

Article courtesy of MyGaming – SA PC game market in decline: report

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PC game market decline in SA: report