Game consoles grow up, go after adult demographic

More than one in every three American adults who use the Internet also own a video game console, according to a survey by Nielsen//NetRatings, meaning that video games have steadily been losing their toy status and are playing a serious role in home media setups.

The Nielsen survey, which offer a national rating of television viewing, revealed Tuesday that more than one in three or nearly 37 percent U.S. adults who go online own a video game console and about 16 percent of them own a portable gaming device such as Nintendo DS or Sony PSP, showing the game consoles are no longer just for children, rather they have become an integral part of US home entertainment systems.

The survey continues to reveal that the majority or 71 percent of those gaming console owners are married and 66 percent have at least one child in the household.

"As game consoles have become increasingly sophisticated, families have incorporated them into their centralized home media centers, which include the television, digital recording device, digital music player and the PC," said Carolyn Creekmore, senior director of media analytics, Nielsen//NetRatings.

"Video game technology will only benefit other media, since what makes a video game fun and exciting brings life to movies and music as well. Companies that can leverage these new technologies across a number of products will have a distinct advantage in the competitive marketplace."

Nielsen/NetRatings also reported that some gaming console Web sites have seen growth over the past year. Traffic to the Sony’s PlayStation Web site fell in February, while its rivals the Microsoft Xbox and Nintendo Wii posted double-digit growth.

Visits to Nintendo.com soared by 91% between February 2006 and February 2007 to 1.6 million visitors and Xbox.com traffic rose by 47 per cent in the same timeframe to 1.2 million visitors, while traffic to PlayStation.com fell 8 per cent in February to 1 million unique visitors, compared to the same month a year ago, the report said.

The popular DS handheld and the launch of the Wii console as well as the price and its focus on average customers helped Nintendo's site soar that much.

Nintendo, which sells its Wii console for $250, has reported strong sales for its gaming device, a reflection that the company's strategy of targeting average consumers instead of hardcore gamers is working.

Nintendo's Wii console that boasts some very innovative features such as its controllers in January was the top-selling console in the United States, as video game fans bought 436,000 units.

On the other hand, the Japanese game giant, Sony Corp. got off to a bad start with PSP3 after a component shortage hit PlayStation supplies. However, despite the production blues, Sony managed to meet its goal of shipping 1 million PlayStation 3 machines to the U.S. in 2006. Sony’s PS3 is priced at $600 in the United States retail market and faces stiff challenge from Xbox 360 and Wii.

Nielsen/Netratings also surveyed the sites which are selling the gaming devices online. The survey ranked Best Buy's website on the top, having the highest concentration of game console owners, with 90% of the site's audience, followed by Amazon.com, with 89% and Gamestop.com, with 88%.

Microsoft, Nintendo and Sony are complimenting their respective gaming devices with innovative features and freebies in order to win the fierce battle for dominance in the $30 billion global video- game market.