Streaming now represents a reported 14 percent of Xbox 360 time, 15 percent of PS3 time and 33 percent of Wii time. This growth is fueled by the availability of services like Netflix, Hulu, MLB Network and ESPN3. Time spent on game consoles in general is also on the rise. Metered console usage data from the first half of 2011 shows that the three platforms combined are up 7 percent in user time versus the year prior. Taken together, these findings suggest that streaming is incrementally adding to the time users are spending with consoles.

While the rise of streaming is evident across all three consoles, each maintains distinct usage characteristics. On a share basis, Xbox 360 is most notable for online gaming (34% of usage), PlayStation 3 is most notable for DVD / Blu-Ray viewing (22% of usage) and the Wii is most notable for offline gaming (55% of usage).

More insights on gamers, console dynamics and allocations of time and money within gaming and the broader entertainment category will be featured in the third annual Nielsen 360° Gaming Report: U.S. Market, available in early 2012. Additionally, an overview of key findings from the 2010 version of the report can now be downloaded here.

Survey conducted among a general population sample of n=3,000 in the United States, October 2011.

On the whole, half of the latest breed of gaming consoles (known to the industry as 7th Generation Consoles) are located in the living / family room. The system most likely to be found in this family-friendly space is the Wii (59%), a reflection of the Nintendo console’s motion-controlled, social gaming style. Comparatively, the Xbox 360 and PlayStation 3 platforms are less likely to reside in the living room, though as more consumers purchase the Kinect for Xbox 360 and PlayStation Move motion peripherals, look for this to potentially change moving forward.

Beyond the living / family room, the next most popular location for consoles is decidedly more solitary: the bedroom, with one in five systems residing in kids’ bedrooms specifically. Here, the Xbox 360 clearly leads the way, with 28% of the Microsoft system’s units located in kids’ rooms, nearly double the rate for Wii (14%) or PS3 (16%). The master bedroom is home to another 10% of 7th Gen systems, with a number of other household locations accounting for the balance of platforms.

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Download a recording of the recent webinar, U.S. Gaming: A 360° View, covering this and other highlights from the second annual Nielsen 360° Gaming Report: U.S. Market. Contact us for the full report, which includes more insights on gamers, console dynamics, and gaming in the context of the broader entertainment category.

Fully 87 percent of users age 13+ say they have played video games of some kind for Xbox 360 and Wii, with 80 percent saying they have done so for PlayStation 3. Much of this is the result of traditional offline play, but nearly half of Xbox 360 and PlayStation 3 users say they play games online. With this in mind, what share of time do both offline and online gaming account for across these consoles? On average, Xbox 360 users claim to spend 62 percent of their time with the system on gaming, with online play accounting for nearly the same share as offline. Comparatively, PlayStation 3 users spend just under half of their usage time gaming, and engage relatively more in offline vs. online play than Xbox 360 users. This difference between the relative proportion of online play for Microsoft and Sony’s consoles likely reflects a number of intertwined factors, such as timing of console launch, profile of players and console exclusives. Overall, what sets Xbox 360 apart from the other two consoles is the total share of time devoted to online play.

The second-most popular use of consoles is for watching DVDs/Blu-Rays, most noticeably for PlayStation 3 but also for Xbox 360 (DVD playback is not a standard feature on the Wii). Sony has made a point of emphasizing the Blu-Ray functionality in marketing for the PlayStation 3 since its launch in 2006, given the company’s broader interest in seeing that technology succeed. In terms of share of time, PlayStation 3 users indicate that DVD/Blu-Ray viewing occupies 27% of their time with the console, which is on-par with offline gaming and, in fact, surpasses online gaming. However, by comparison, DVD viewing occupies only 11% of time on an Xbox 360 (Blu-Ray format is not supported by Xbox 360). In sum, the PlayStation 3 stands out for its use as a DVD/Blu-Ray player as well as a gaming console.

After gaming and DVD/Blu-Ray viewing, roughly a quarter of users say they have used a variety of applications. The most notable in terms of contribution to console usage time is video-on-demand and streaming services such as Netflix, MLB Network and ESPN3, accounting for 20 percent of Wii users’ time, 10 percent of Xbox 360 users’ time and 9 percent of PlayStation 3 users’ time. What explains the Wii’s edge here and usage profile in general? Compared to the other two consoles, the bulk of time on the Wii is in the form of offline gaming; the system trails in use for online play. This may reflect the lesser emphasis on online applications and gameplay for the Wii in general. In terms of streaming, Netflix was introduced this year for the Wii, but its lead in share is likely a function of the fewer hours per user that is being divided up, as detailed below. Overall, the Wii is most defined by its use for traditional offline gaming.

All of the analysis of console time up to this point has looked at consumer-reported share of time rather than electronically measured hours. Though a different data source, metered console usage data can help us understand how big the pie is that is being sliced for each console. Indeed, the total amount of time in hours differs markedly by console. Users 13+ spend 4.9 total hours per week on the Xbox 360, 4.1 hours on the PlayStation 3 and 1.4 hours on the Wii. Males drive these averages for all three consoles, surpassing females in time spent. These differences in time, coupled with the nuances in how that time is allocated, underscore the unique profile of use for each console.

More insights on gamers, console dynamics, and allocations of time and money within gaming and the broader entertainment category will be featured in the second annual Nielsen 360° Gaming Report: U.S. Market, available January 2011.

Across a multitude of electronic offerings, the Apple iPad leads all devices (31% interest in future purchase) among American kids ages 6-12. Apple’s iPod Touch is also popular choice among kids, generating similar levels of interest as computers. Of note, the iPod Touch outpaces the perennial handheld gaming favorites Nintendo DS and Sony PlayStation Portable – though look for the Nintendo 3DS to make a splash with young gamers when it releases in Spring 2011. Among gaming consoles, kids indicate they will be requesting the Sony PlayStation 3 the most this year; however, the platform will be competing with a variety of equally-popular mobile devices.

For the rest of U.S. consumers, electronic upgrades look to be a popular trend this year, with future interest in commonly owned devices such as computers, televisions, and smartphones outpacing other electronic offerings among consumers ages 13+. Kids aren’t the only ones interested in the iPad: fully 18% of the 13+ population is also eyeing this hot new offering. The emerging technologies offered by Blu-Ray players and E-Readers also have good traction with teens and adults.

Beyond these products, gaming devices appear to be ready for another solid holiday showing. Console interest among ages 13+ is led by the Nintendo Wii (15%) and Sony PlayStation 3 (13%), which both maintain an edge over the Microsoft Xbox 360 (9%). Much has been made of new motion peripherals from Sony (Move for PlayStation 3) and Microsoft (Kinect for Xbox 360), and these gadgets garner sizeable interest (9% and 8%, respectively) – though of note, interest was gathered prior to Microsoft’s recent large-scale media campaign for Kinect, which launched in the U.S. on November 4.

Given the continued pressure on consumer spending, it is difficult to know how robust a holiday season this will be for tech devices, but this survey suggests the electronics aisle will be heavily traveled this season.

More insights on gamers, console dynamics, and allocations of time and money within gaming and the broader entertainment category will be featured in the second annual Nielsen 360° Gaming Report: U.S. Market, available in January.

The video game marketplace continues to be an important in-home entertainment option.  Nielsen reports that over half of all U.S. households (54%) claim to own a video game console or handheld system of some kind. The seventh generation of consoles (Nintendo Wii, Microsoft Xbox 360 and Sony Playstation 3) dominates this tally with a combined penetration rate of 41%.

And despite the stereotypes about teenage males, gamers are not monolithic. In fact, 45% of active gamers are female and women account for half (49%) of all Wii owners and 52% of Sony Playstation Portable (PSP) owners.

On the gameplay front, the average U.S. household played roughly 3.36 hours per week via a console in Q3 2009. Combining TV gaming time with online gameplay, Nielsen reports that average time spent gaming increased 5% year-over-year through the end of May 2009, but since June has largely followed monthly averages from 2008.

Dividing Dollars
Like nearly all industries, the video game market has been negatively affected by the economic downturn. From mobile games to controllers, consumers claim to have spent slightly less than last year across all forms of gaming content. Video game-related spending represents 4% of active gamers’ total entertainment spending, but households with boys 9–12 spend more—allocating 6% to video games and households with teenage males 13–17 contribute 5%.

How gamers divvy up dollars is instructive about distribution and monetization strategies in the industry. Active gamers spend half of their game-play dollars on new games and over one-quarter (27%) on used titles. Game rentals or rental subscriptions account for 14% of spending and downloadable content (extra levels, weapons and characters, for example) represents 5%.

Game publishers need not be overly concerned about spending on the secondary market—at least as far as rentals are concerned. Given the vast number of entertainment hours a game can provide, rentals may serve as a stage in the purchase funnel rather than an end to it, which appears to be in contrast to movies. Fully 61% of game renters claim to buy the game if they like it. The same is true for only 27% of movie renters.

2010 U.S. Outlook

Part 1: Cross Media

• Big Screen, Smart Screen, Small Screen: Top 5 Cross-Media Trends
• You Can Take It With You: Future Trends In Media

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Part 2: Consumer

• Winner Winner Chicken Dinner – Top 5 Consumer Goods Spending Trends
• Innovation Creates Opportunities for CPG Growth
• Aging Puts a Wrinkle in U.S. Marketplace

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Part 3: Advertising

• Talking Back – Top Five Advertising Trends
• Get Ready for the Audience-Centric Web
• What Would John Wanamaker Say Today?

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Part 4: Entertainment

• There’s No Business Like Show Business – Top Five Entertainment Trends
• Game On – The World is Watching More Than Ever
• Video Games in Play

Other notable trends from June 2009 show:

• Video game consoles are not just being played by kids – just under 50% of gameplay came from adults 18+
• Teenagers 12-17 have the largest percent of play, which accounted for 25% of gaming in June
• Xbox 360 and PS2 are now neck and neck in terms of minutes played per month, yet June data shows Xbox 360 is the most active console, with the 6-month trend show Xbox 360 with the highest active users



• PlayStation consoles tend to be more gender neutral than other consoles. Xbox 360 continues to skew more male and Wii continue to skew more female.

• More Americans are playing the newer consoles. Nielsen data shows that current generation consoles, such as Xbox 360, PS3 and Wii, made up 50% of total share of minutes in June 2009, while last generation consoles, such as Xbox, PS2 and Gamecube, made up only 31% of total minutes. Use of older gaming consoles (PS One, Atari 2600, Nintendo 64, Sega Genesis, etc.) made up the 19% balance of usage minutes for the month.

With a bevy of announcements expected from press conferences of the major players in the gaming industry, what are gaming enthusiasts discussing prior to the show? Even though most gamers agree that new developments for existing hardware is cool, console enthusiasts are more focused on what the future holds for upcoming games. One week before the conference, upcoming titles were mentioned in just over half of all E3 discussion, while the new PSP Go! and anticipated Xbox 360 motion sensor each garner less than 10% of E3 buzz. Unveilings are expected to occur for a long list of titles, but prior to the expo, games generating the most buzz include Gran Turismo 5 for PS3, Mass Effect 2 and Metal Gear Solid 4 + Oxide for Xbox 360, and Legend of Zelda: Spirit Track for Nintendo DS.

The Xbox 360 garnered the largest share of online buzz between November 1 and December 9, with 41.6% of blog messages mentioning Xbox, Wii or Playstation.

In comparison, Nintendo’s Wii was mentioned in 29.8% of game console blog messages, while Sony’s Playstation ranked third with mentions in 28.6% of gaming-related blog posts.

Among gift-related online buzz, TV-related terms, mentioned in 52.5% of gift-related messages, dominated blogosphere chatter.

DVDs (24.4% share), toys (11.3% share), laptops (8.4% share), and GPS (3.4% share) rounded out the select five gift ideas.

View the press release.