To help narrow the focus of this analysis, Nielsen filtered the field to those titles releasing on at least one of the three major consoles (Xbox 360, PlayStation 3, Wii) during the timeframe of late August to late November. This year’s list underscores the various interests of gamers—as well as the strength of video game brands. All but one of the Top 20 titles stem from a franchise, with brands such as Madden NFL and The Legend of Zelda dating back more than 20 years. Deep Silver’s Dead Island represents the lone new IP included on this year’s list.

Activision’s Call of Duty: Modern Warfare 3, an expected juggernaut for this holiday season, is desired by more than one quarter (27%) of active gamers. Microsoft’s Gears of War 3 and EA’s Madden NFL 12 follow closely behind; both titles were selected by nearly one out of every five (19%) active gamers. Apart from Gears of War 3 for Xbox 360, other platform exclusives expected to resonate strongly with consumers in the coming months include Nintendo’s The Legend of Zelda: Skyward Sword for Wii and Sony’s Uncharted 3: Drake’s Deception for PS3.

Nielsen’s Top 20 Games to Watch is supplemented by information from NM Incite, a Nielsen McKinsey company, which analyzed the primary elements driving consumers’ online conversations around each title. Recent consumer buzz shows that those anticipating Ubisoft’s Assassin’s Creed: Revelations are excited for the return of multi-player functionality to the franchise, while gamers looking forward to Warner Bros Interactive’s Batman: Arkham City are speculating on the villains they’ll face in the new title. Fans of EA’s FIFA franchise are hoping for more pro and career mode options in the upcoming iteration, and those addicted to Microsoft’s Dance Central are rejoicing in the news that they’ll be able to import tracks from the original title into the sequel.

While Action/Adventure games hold the most spots in the Top 20, the list is a testament to the diverse interests of today’s gamers—from the intense action of First Person Shooters like Square Enix’s Deus Ex: Human Revolution, to the energetic enthusiasm of Music / Rhythm games such as Ubisoft’s Just Dance 3, to the epic sense of adventure in Bethesda’s RPG Elder Scrolls V: Skyrim. Sports and racing titles like 2K’s NBA 2K12 and EA’s Need For Speed: The Run are represented as well.

As a way to help get better answers for media companies and advertisers, and to begin to establish a standard metric for game play that can be compared to other media measurement, The Nielsen Company teamed up with Microsoft and conducted a pilot study that took a closer look at the video game-playing audience. Initial findings from the study were presented at this week’s Ad:Tech conference.

To get a clearer picture of who’s playing what, when, and for how long, watermarks were placed in Season 2 of the Xbox LIVE game “1 vs 100.” Using the same Nielsen panel used to measure TV, we were able to draw comparisons between a video game audience and a TV audience. For example, while Nielsen’s Video Game Play metrics can provide a snapshot of who’s playing a specific console, the addition of the watermark provided the ability to get specific audience data on a title-level.

The consumption of Xbox 360 console usage minutes by 18-34 year olds is generally 45 percent. When looking at the gamer profile for Xbox LIVE’s “1 vs 100” game show, 18-34 year olds made up 55 percent of the player set. These specific metrics help to provide the type of insights advertisers and media planners need to compare video game platforms to other types of media.

Nielsen data for the Xbox 360 shows that month-to-month, between 20-25 percent of Xbox 360 consoles are active during prime time hours in Nielsen homes. With the Xbox 360 being a multimedia device capable of not only playing games, but also movies, TV content, music, and social media interaction via Facebook and Twitter, the need to measure all of its capabilities has been a popular client request.

Time Spent Playing
The Nielsen and Microsoft joint study evaluated 13 weeks of programming from November 2009 through February 2010. The Xbox LIVE game show “1 vs 100” was available for play in two forms, “1 vs 100 Live” in which a live host, Chris Cashman, provided commentary and real prizes were awarded, as well as “1 vs 100 Extended Play,” where players could practice in more condensed, theme-based versions of the show.

Based on panel and meter date, the average length of play for “1 vs 100” (both Live and Extended Play sessions combined) is more than 70 minutes. More impressively, , the average length of play during “1 vs 100 Live” is87 minutes. Both types of play offer advertising integration during the “game breaks” after each set of 10 questions.

“Advertisers should be very interested to see the amount of time consumers spend interacting with these games – especially during those appointment-based ‘1 vs 100 Live’ sessions,” said Gerardo Guzman, Nielsen Games. “What makes this pilot study so important is the potential for precise audience segmenting. As more game companies and advertisers participate in studies like these, we’re able to define and refine an efficient set of metrics for gaming that can be compared against other media.”

“Our independent research shows that gamers are very engaged while playing, especially during Live Play,” said Carolyn Fuson, Sr. Audience and Analysis Manager, Xbox LIVE Advertising. “In one specific case, an advertiser who placed ads within the games saw notable brand recall and lift. Our ability to learn more about the audience can only be a positive to those brands looking to make an impact on the growing gaming community.”

“Primarily, we believe mainstream gamers are playing more of the broadly appealing games (i.e Wii Fit, Guitar Hero and Rock Band) pushing their hours of gameplay up,” said Michael Flamberg, director of client consulting, Nielsen Games. “The social aspects of these games have engaged them. We don’t believe hardcore gamers are driving up the usage averages we’ve observed. Second, gamers may be looking to stretch their entertainment dollar further through playing games they own more. The importance of value for them is evident in the findings on used game purchase.”

In terms of why new game sales have been soft, Nielsen offers three contributing factors that explain this:

1. Used game purchasing is at all-time highs in 2009, looking back since 2006. Claims about how many used games are being purchased in absolute terms and as a share of the total (used vs. new) have increased substantially (see graph). This is corroborated by GameStop’s record-breaking first quarter financial results, on the strength of used game sales. Best Buy recently announced it was getting into the used game market as well and Wal-Mart is testing this out.
2. There has been an uptick in claimed subscriptions to video game rental services by mail, to all-time highs since 2006 (14% of gamers in May). This is a plausible substitute for new game purchasing.
3. New game sales have been soft compared to last year in part because of unfavorable title comparisons in terms of how popular the releases have been this spring vs. last spring. This is a hit driven business and there haven’t been as many hits. Awareness of new titles, when prompted with their names, has dipped in 2009 to lows not seen since 2007.

For more, download The Value Gamer: Play and Purchase Behavior in a Recession and read the coverage in the Los Angeles Times.

A gamer is defined as claiming to have purchased a title in the past 6 months and played for at least 1 hour per week on any of the current consoles or the PC.

Online Buzz for Resident Evil 5 And Metallica’s Guitar Hero

In addition to gaming consoles such as PlayStation and Xbox, PC gaming is alive and well, while new platforms like mobile phones offer new possibilities for game developers.  More than ever before, video games encompass a broad spectrum of genres, platforms and price.

Other key findings from Nielsen’s report include:

• PlayStation 3 and Xbox 360 attract the more engaged users, who are less likely to be watching prime time TV that users of other consoles.

• PlayStation 2 still leads all other consoles in total minutes of usage, but continues to have the highest downward trend.  Data suggests that the PS2 will lose the top usage spot within the next few months.

• Females 25 years and older make up the largest block of PC game players, accounting for 46.2 percent of all players and 54.6 percent of all game play minutes in December 2008.

• The most played games on the PC are card games from Microsoft, with Solitaire being the most played game in December 2008 with over 17 million players.

“Gaming, once the domain of kids and a small group of core fans, is now more mainstream than ever.  As the number of platforms continues to expand, we would expect that more people will be drawn to the entertainment video games can offer.  Along with this, the evolution of gaming consoles into multimedia devices has changed consumption habits of traditional media such as TV, movie and Internet content,” said Bradley Raczka, Marketing Manager for Nielsen Games.

View the complete State of the Video Gamer report here.

“All three of the consoles have their fans, and sales of consoles and games have been some of the few bright spots in an otherwise bleak retail environment,” said Bradley Raczka, Marketing Manager for Nielsen Games.  “It will be interesting to watch the continued migration to the current generation consoles in 2009, and see how releases of titles such as Halo Wars, Resident Evil 5, MadWorld, Killzone 2 and Street Fighter IV impact usage trends in the first half of the year.”

• Wii: The best-selling of the three systems, appeals to boys age 6-11 and women age 25-34. Usage of Wii by women 35+ is much higher than with the Xbox 360 and PS3. Games such as Wii Fit, Guitar Hero and Rock Band appear to have engaged an older female gamer like never before.

Usage of Wii by the 18-24 age group, considered the core/hardcore gaming segment, is low for both genders compared to the other two consoles.  However, Wii has been successful in broadening the gaming market to a wider demographic audience.

• Xbox 360: For males, the largest percentage of usage is in the 12-17 age group, older than Wii, but younger than PS3. For females, the 25-34 age group had the highest percentage of usage. These consumers may also be attracted to the other services featured such as Xbox Live, which offers online play, onlineaudio/videochat, and the ability to download movies (now with Netflix as part of the NXEXbox Live update),classic video & user generated games, additional game contentand music videos.

• PS3: The Sony console skews the oldest of the three consoles, and that could be the result of consumer brand loyalty, since Sony has been the dominant market player since it introduced the PS One in 1994 and PS 2 in 2000. Gamers who owned one or both of these consoles in their youth may have “graduated” to the PS3 in their assumed adulthood. For both males and females, the highest usage came from the 18-24 age group.

In terms of overall usage, males using the Xbox 360 are playing almost twice as many days per months as females (10.2 vs. 5.4 in December), but on the other two consoles, usage days for males and females are much closer.  On average, the least used console is the Wii.

During the fourth quarter, November had higher than average usage days on all three consoles, due largely to the fact that the bulk of game releases occur during October and November in advance of the holidays.  In 2008, a number of highly anticipated titles were released, such as Gears of War 2,  Wii Fit, Grand Theft Auto IV, Dead Space, Guitar Hero: World Tour, Call of Duty: World at War and  Left 4 Dead .

A complete comparison of console usage during the fourth quarter can be viewed in PDF form here.

Nielsen Games’ GamePlay Metrics service provides measurement of console activity from the National TV Panel of homes.

Sony’s Playstation 2 was the top game console of 2008, claiming 31.7% of all measured console minutes, according to Nielsen.  The Xbox 360 and Wii ranked second and third, respectively, with 17.2% and 13.4% of all usage minutes between January and October of this year.

Blizzard Entertainment’s “World of Warcraft” was the most popular PC game title of the year, drawing an average of 0.723% of all PC gamers per minute between January and October 2008.

Among mobile gamers, “Tetris” was the top game for Q3 2008, in terms of share of revenue. 

Top 10 PC Game Titles: U.S.

Top 10 Mobile Games By Revenue Share: U.S. – Q3 2008

Top Video Game Consoles By Usage

View the press release.

Read coverage of Nielsen’s findings in Forbes.

Relive the greatest hits of 2008 — stay tuned on Nielsen Wire for more Tops In 2008 coverage.

Look ahead to the new year with Nielsen Wire’s 2009 Industry Outlook series.