ABI Research Finds Sony PlayStation Owners Showing Greatest Brand Loyalty When Considering Next-Generation Purchase

Business Wire, Nov 16, 2006

NEW YORK -- A new survey has shown that despite efforts by video game console manufacturers to expand their reach to non-gamers, interest in next-generation consoles is largely centered among those who are current console gamers.

When ABI Research surveyed 1725 consumers about their interest in buying a new game console, a total of 18% said they were likely to buy one in the coming year, compared with 28% of active gamers. Interest rose even more dramatically when asking those who currently play on a console, with 42% of PlayStation 2 owners, 55% of Xbox owners and 54% of GameCube owners indicating they were likely to buy a new console.

"Not surprisingly, the interest in the new generation of consoles grows significantly among the already converted," says research director Michael Wolf. "While we think that the market of console owners will likely expand beyond its current bases, we believe that the market for the next 1 to 2 years will be driven by current console owners upgrading to the new generation."

While the overall percentage of PlayStation 2 owners showing interest in a next-generation console today was lower than that of other console owners, their intensity of loyalty to Sony products was higher when considering a next generation purchase. The research showed 60% of those who own a PS2 and are considering a new console likely to buy a PS3, which exceeded the 45% of Xbox owners looking to buy an Xbox 360 and 46% of GameCube owners looking to buy a Wii.

"We believe that Sony's much larger installed base combined with higher loyalty among current generation owners could translate into significant gains for them if they can, in fact, convert these prospective owners," said Wolf. "Microsoft and Nintendo, while still seeing strong overall loyalty, do not enjoy the same intensity."

The survey results are contained in ABI Research's research brief, "Video Game End-User Perceptions: Entering the Next Generation" (http://www.abiresearch.com/products/research_brief/Consumer_Electroni cs_Market_Update/102), which explores current video game players' preferences for platforms, explains game genres and identifies those who play video games today. It forms part of the Consumer Electronic Research Service (http://www.abiresearch.com/products/service/Consumer_Electronics_Rese arch_Service), which also includes Research Reports, Research Briefs, Market Data, ABI Insights, and analyst inquiry support. (Due to their length, the above URLs may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

Methodology: data contained within this report is derived from a Web-based survey among a nationally-balanced and demographically-representative sample of 1,725 online consumers (age 18 and older). The consumer survey was conducted in October 2006.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services and market reports in broadband and multimedia, RFID & contactless, M2M, wireless connectivity, mobile wireless, transportation, and emerging technologies. For information visit www.abiresearch.com, or call 1.516.624.2500.