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France Market Data (Jan - May) "Generation 9 shows its full power" (Retail Software: +6% YoY / Hardware: +84% YoY)

Astral_lion02

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This is an interview from last issue of Multimedia à la une (https://multimedialaune.com/)

The video game ecosystem, and especially that of the console ecosystem show good results for this first semester. Natasha Hombourger and Nicolas Vignolles, respectively Territory Manager of Sparkers and the S.E.L.L. General Delegate, comment on the figures from early 2023 and deliver their vision of the video game ecosystem In France.

What major lessons can we draw from the last few months for video games in France ?
Natacha Hombourger:
2023 is a year remarkable where the Generation 9 console shows all its power. The market has reached a remarkable level of performance, higher than at the start of 2021, which had nevertheless been an exceptional period. The market at global and console sales grow two digits, the physical software is in progress and the accessories remain stable. Hardware is growing exceptional, when he had suffered from tension on supplies, despite strong demand. Consumers waiting for the offer to come back. The sales of software in 2022 had already been good with the release of some excellent postponed titles of 2021. Those of early 2023 turn out to be even higher. The big news worked well with 4 headlines that have pulled the market. There was just a lag in the weather. The demand is therefore more than ever there. It is interesting in the short term, but above all encouraging in the medium and long term.

What interactions currently exist between the sales of software and hardware?
N.H.: Very good games drive sales from console and the hardware pulls the request from software, which boost the accessories and other products of the same license. It is therefore a virtuous circle. The indicators are green with growing console tie-in sales. Consumers demand content and quality accessories. The attachment rate by console is therefore excellent. In the accessories, controllers and gaming audio are thus rising.
Nicolas Vignolles:
One of the elements I find very interesting is the elongation really important to the product life cycle video game hardware and software. On the hardware, we have consoles that "last" for longer and longer at a very high level. This rewards the efforts and the vision of the manufacturers and allows to build models economical over the long term. Likewise, for software, there are more and more long, or even very long sellers, which sell for a very long time on Generation 9, while some Generation 8 software always sell well.

Given these good results, how do you see the future of market ?
N.V.: We are very optimistic for this year. This beginning of 2023 makes it possible to envisage a good end to the year 2023, with prospects also encouraging for 2024. These good results are only the beginning, since 2 of the Generation 9 consoles are only in their 3rd year. Allowing to look forward to many good years for the future, especially with a software offer which looks quite dense. The signals are at green in the short and medium term.

These current good results of the video game stand out in many markets which have returned recently. How do you explain it ?
N.V.: This growth is all the more more interesting than the macroeconomic context turns out to be gloomy and that the industry had already come a long way during the Covid years. And, unlike many related markets, the period Covid was not a “golden parenthesis” cyclical. Those were good years as part of an increase itself structural.
N.H.: The historic level of figures hardware, the good results of the software physics and a positive trend for accessories combine for a present and a future where Retail has its place.

Do we find this dynamic in the rest of Europe ?
N.H. France is really among the leaders in Europe in terms of sales and growth. The console ecosystem (hardware + software + accessories, physical + digital) is in great shape.
N.V.: This is a real specificity of the market French, which turns out to be very different for example of what is happening in the UK. The enormous density of very dynamic retailers brings real added value. They make important efforts to create dynamic spokes, a true eventization of outings, with innovative business strategies and renewed global approach. There is a real willingness of French distributors to animate the rays “by telling a story” via par example the dramatization of points of sale or the creation of 360° concepts around certain licenses. We can probably go further.

GSD - Weeks 01-21, 2023 (Jan 02 - May 28) - All Formats (Units) [Retail]

01 THE LEGEND OF ZELDA: TEARS OF THE KINGDOM (NINTENDO)
02 HOGWARTS LEGACY (WARNER BROS ENT.)

03 FIFA 23 (ELECTRONIC ARTS)
04 MARIO KART 8 DELUXE (NINTENDO)
05 RESIDENT EVIL 4 (CAPCOM)
06 MINECRAFT (MICROSOFT)
07 NINTENDO SWITCH SPORTS (NINTENDO)
08 STAR WARS JEDI: SURVIVOR (ELECTRONIC ARTS)
09 ANIMAL CROSSING: NEW HORIZONS (NINTENDO)
10 NEW SUPER MARIO BROS. U DELUXE (NINTENDO)
11 POKEMON VIOLET (NINTENDO)
12 GRAN TURISMO 7 (SONY INTERACTIVE ENT.)
13 CALL OF DUTY: MODERN WARFARE II (ACTIVISION BLIZZARD)
14 THE LEGEND OF ZELDA: BREATH OF THE WILD (NINTENDO)
15 FIRE EMBLEM ENGAGE (NINTENDO)
16 DEAD ISLAND 2 (PLAION)

17 SPLATOON 3 (NINTENDO)
18 NBA 2K23 (TAKE 2)
19 MARIO PARTY SUPERSTARS (NINTENDO)
20 GRAND THEFT AUTO V (TAKE 2)

Top 20 Software sales - 2.300.000 <50%>
All Software sales - 4.600.000 <100%>


YTD 2022YTD 2023Evolution
Retail Software205M€217M€+6%
Hardware176M€323M€+84%
Accessories111M€112M€+1%
Total540M€705M€+31%


TotalEvolution
YTD 2019508M€-3%
YTD 2020494M€-3%
YTD 2021571M€+16%
YTD 2022540M€-5%
YTD 2023740M€+31%

*digital is not include on these data
 
Nintendo Switch Sports in front of Star Wars Jedi Survivor is somehow something i did not see coming.
Also those Animal Crossing sales. Still so strong!
 
Nintendo Switch Sports in front of Star Wars Jedi Survivor is somehow something i did not see coming.
Also those Animal Crossing sales. Still so strong!
Jedi Survivor had high digital share for single player game (55% during its launch month in Europe).
 
lol
If we go by their definition next Switch will be the first 10th gen console. What a turnaround :D
 
Considering the Switch is well past its peak and that the XBS is likely not doing well at all in mainland Europe, I imagine all of that growth in hardware revenue is due to the PS5.

Also, the Switch is Gen 8. It was released closer to the launches of the PS4 & XBO than to the launches of the PS5 & XBS (though not by much, to be fair). If it weren't for... certain factors, it would have peaked earlier than it did and may not have lasted a bit shorter than it did. With the Switch 2 almost certainly coming out next year, we ain't kicking off Gen 10 before we're even to the halfway point of the PS5 & XBS's life cycle. It'll likely spend over half life of its primary life cycle and a solid majority of its best years competing against the PS5 & XBS, not the Gen 10 PS & Xbox systems.
 
The lack of Pokemon Scarlet and Smash is rather surprising
 
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