In February 2021, recognized gaming specialist group Newzoo launched its ‘Trends to Watch in Gaming’ for the year. A couple of those mentioned trends were the following: a) Engagement and revenues will continue to flourish, and b) Gaming-as-a-platform & Metaverse development will expand publishers’ addressable market. Now, confirming the evolution of a segment that represents a USD 159.3 billion market, with 2.7 billion gamers worldwide, Newzoo presents ‘How Different Generations Engage with Games?’ report. The research includes thousands of gamers from 33 different markets in Morth America, Latin America, EMEA and APAC. Key element of tis investigation is the age segregation, based on diverse generations: Gen Z (10-24 years old); Millennials (25-40); Gen X (41-55), and Baby Boomers (56-65).
Jutta Jakob, Head of Consumer Insights, Newzoo, comments: “In terms of numbers, we know that gaming is a continuous boom, with an estimated revenue generation of USD 189.3 billion for 2021. As for generations, gaming isn’t just for youngsters. While Gen Z and Millennials are much more likely to spend their free time on gaming (81% of Gen Z reports playing games) than any other form of entertainment, there is a growing number of older consumers (re)engaging with games (42% of Baby Boomers play games). Not only are games a means for relaxing, escapism, and filling time, but they also provide spaces to socialize, compete, and create, especially for digital-native generations.”
TIME SPENT FOR GAMING
Unlike other forms of entertainment, games fulfill a wide range of needs. Most people play to unwind (92% of Baby Boomers), but younger generations have many motivations. In fact, the share of time spent on gaming increases with each new generation. For instance, 8 of 10 Gen Z and Millennial consumers play video games. Consumers under 40 average around 7 hours of playtime a week, significantly more than older gamers. Some comparisons are really interesting to observe: a) Gen Z gamers spend 25% of their of leisure time on gaming vs. 10% of Baby Boomers; b) 67% of Millennial gamers play games & watch video game content vs. 51% of Gen X; and c) 79% of Baby Boomers play single-player mode most often on PC games vs. 45% of Gen Z. Most older generations tend to play games more casually, typically playing on mobile to fill time. In contrast, younger generations prefer to fully engage with gaming in many other ways, including viewing game-related content, discussing the latest developments in community spaces, listening to podcasts, and discussing video games with their friends. This signifies they are also motivated by other reasons, including competition, socializing, and a sense of achievement. Besides, Esports, viewership, and community aspects of games are usually more relevant for younger generations, as well as immersion and creativity.
In terms of time, on average, Gen Z spends 7 hours and 20 minutes playing games, half an hour more than the Millennial average. This makes sense, as Millennials (still digital-native) typically have less leisure time due to full-time work and other life commitments. Meanwhile, Baby Boomers play for just 2-and-a-half hours per week; they tend to dedicate more leisure time to more traditional forms of entertainment.
GAMERS SEGMENTATION
Now more multi-dimensional and fragmented than ever, gamers are not interchangeable. Community engagement, socializing, Esports and gaming video content are as important as playing. Hardware and peripheral ownership is, in many cases, another vital component of the fun. These new dimensions of gaming demand a new set of Gamer Personas that capture gamers’ unique, passionate fans and their needs. With this in mind, Newzoo divided interviewees among categories of gamers: Game fans, Regular players and Casual gamers, including inner segmentations, like ‘The Ultimate Gamer’, ‘The All-Round Enthusiast’ or ‘The Community Gamer’. Young game enthusiasts engage through communities, viewing, and playing, while older gamers engage casually by playing. There is another segmentation that considers female gamers. For instance, 45% of Gen Z game enthusiasts are women. The same number represents Millennials and Gen X female players, while 53% of Baby Boomers are women.
Regarding different activities besides (or in parallel with) gaming, Over 2/3 of young game enthusiasts watch and play games, so viewing and playing usually go hand in hand for younger gamers. Many of them see streamers and casters as a lifestyle aspiration. Platforms like Twitch and YouTube allow for more interaction between fans and creators than more traditional cultural figures, strengthening the connection between viewers and streamers. On the contrary, older gamers are less likely to watch game-related video content than their younger counterparts. Still, more than half of Gen X gamers watch, but this drops dramatically to just under a quarter for Baby Boomers. Practical content tends to be more popular with these older generations, who are more likely to watch tips and tricks on how to proceed in a game, and reviews to inform about purchasing decisions.
GAMING, A SOCIAL ACTIVITY THAT IS ALSO A LIFESTYLE
The study shows that, for youngsters, gaming is part of their daily social life and identity. Engagement goes even further than playing or viewing for younger generations. That’s why 40% of Generation Z and 37% of Millennial gamers indicate that they engage with games often, whether by talking about games, visiting online communities, website, and blogs, or listening to podcasts. These shares are significantly higher than those for Gen X gamers (22%) or Baby Boomer gamers (10%). Of course, different needs are reflected in generations’ preferred game modes. Driven by social and competitive aspects, younger generations are more likely to enjoy multiplayer titles.
Multiplayer games are also the de-facto titles for many top streamers, which are very more popular among younger groups. Just like in real-world spaces, everybody needs a moment to themselves sometimes. While older generations tend to prefer single-player games, they are also popular with younger generations, just to a lesser degree. Since older players are more driven by casual reasons to play, such as relaxing and unwinding, they prefer single-player experiences to multiplayer ones, which usually are more competitive than relaxing.
PREFERRED GENRES AND METAVERSE
Modern games are blending the digital and physical worlds. Interactions in digital worlds are increasingly mirroring real-world contact. As more games innovate in these spaces, consumers will spend even more time in these virtual worlds, a trend that has been accelerated (but not caused) by the pandemic. In this sense, Gen Z gamers like genres that empower creative freedom and socialization, mostly core genres like Battle Royale & Sandbox, while older gamers prefer casual genres like Puzzle & Match. Gamers are currently hanging out in game worlds and more expect to do so. For example, 70% of Gen Z gamers expect to hang out in game worlds without gaming vs. 52% of Gen X.
Young people is collectively participating more in simulated worlds, which brings to one of gaming’s hottest trends: the Metaverse. In terms of gaming, we recognize the Metaverse trend as the growing importance of virtual (game) worlds and digital persistence in unlocking creative spaces and identities for social experiences. The Metaverse integrates non-gaming experiences, such as virtual concerts and fashion shows, into games. The broad appeal of non-gaming experiences is powerful: activities like virtual concerts attract non-gamers in a way games themselves cannot.
The Metaverse is pushing boundaries for digital socializing, entertainment, and self-expression, offering new opportunities for publishers to engage with consumers. Publishers are organizing and generating these non-gaming experiences, while players are driving Metaverse-like experiences by using games as a platform to express their identity, host social events, or create their own games and modes.
The future looks bright and transformative. With emerging technologies and the burgeoning Metaverse trend, gaming is developing further into a virtual space that empowers entertainment and social interaction. Our sector is blurring the lines between traditional and contemporary forms of entertainment and the whole spectrum of generations is on board. For brands and advertisers, games present strong opportunities for reaching a broad, diverse audience. These opportunities will only increase, as games continue to dominate consumers’ mindshare and leisure time.