Video game market - France (2024)

1.2 The global market has been growing for many years

The global video game market has been in a clear growth phase since the early ****s. In ****, the Covid-** crisis played in its favor, enabling it to accelerate sharply and settle permanently above the $*** billion mark.

After a slight dip in **** due to the post-Covid downturn and supply difficulties in the electronic components market, the market picked up again in ****. It ended the year up *.*%, at around $*** billion. This recovery is set to continue in the coming years, with a compound annual growth rate (***) of *.*% over the period ****-****. by the end of the decade, the global video game market could be worth $*** billion. [***]

These two years of decline after the euphoria of ****-**** have nonetheless thrown the industry into turmoil. Several publishers, who had recruited massively during the health crisis to take advantage of the favorable momentum, had to scale back their ambitions. as a result, **,*** redundancies were recorded in the sector in **** and ****. This situation is set to continue in ****, with over **,*** redundancies already recorded in the first half of the year, before the sector returns to a calmer social climate. [***]

sales trends in the global video game market World, ****-****, in billions of dollars Source: ****

Whereas they represented ...

1.3 French market to reach record levels in 2023

The French video game market topped * billion euros in sales for the first time in ****, representing growth of *.*% compared to **** and **.*% compared to ****, the last pre-Covid-** year.

However, this significant increase is still linked to a specific post-Covid environment. While the video game market remains buoyant, these impressive results should be treated with caution. [***]

french video game market sales trend France, ****-****, in billions of euros Source: ****

Growth in **** was driven by the console ecosystem, which saw its revenues increase by **.*% over the year and now accounts for more than half the market. The PC market was less buoyant, down *.*%, while smartphone games continued to grow, up *.*%, overtaking the PC ecosystem. Unlike the global market, however, they are not yet the number-one segment in France.

Breakdown of video game market sales by ecosystem type France, ****-****, in billions of euros Source: ****

Hardware (***).

Breakdown of video game market sales by segment France, ****, in billions of euros Source: ****

1.4 France is a major importer of video game consoles and machines

The figures in this section are taken from the CN* code ********, concerning video game consoles and machines (***). They come from the foreign trade website managed by French customs.

In **** and ****, France imported over €* billion worth of video game consoles and machines, nearing the €*.* billion mark in ****. By comparison, its exports in the sector remain minimal, representing only around *** million euros in these two years.

imports and exports of video game consoles and machines (***) France, ****-****, in millions of euros Source: ****

The vast majority of French imports come from Asia, particularly China, which alone will account for almost **% of French imports in this sector in ****.

Main countries selling video game consoles and machines to France (***) France, ****, in millions of euros Source: ****

On the export side, France sells video game consoles and machines mainly to its European neighbors, including Germany, Spain, Belgium, the Netherlands, Italy and the UK, to whom over ** million euros worth of goods in this sector were exported in ****.

France's main customer countries for video game consoles and machines (***) France, ****, in millions of euros Source: ****

2.1 The French and video games

**.* million French people aged ** and over played video games at least occasionally in ****, representing over **% of the national population. More than half played very often: **% several times a day, **% every day or almost every day.

How often the French play video games France, ****, in Source: ****

All age and gender categories are involved in this practice, some in particularly high proportions, notably among **-** year-olds. Men also play more than women, **% versus **%.

Share of French population playing video games France, ****, in Source: ****

The smartphone is now the main medium, with **% of French people playing, ahead of the TV game console (***). A few more recent devices are also on the list, such as Smart TVs and smartphones specialized for gaming.

Consumers use an average of *.* media to play, although **% use * or more.

Media used by the French to play video games France, ****, in Source: ****

Entertainment and the desire to escape from everyday life appear to be the primary motivations for playing video games. The notions of conviviality, sociability and competition are also cited by gamers. **% say they play online, and **% feel that video games have helped them make friends.

Main reasons why French people play video games France, ****, in Source: ****

Overall, the French ...

2.2 French video game purchasing behavior

**% of all French people had bought at least one video game in the last twelve months by ****. The proportion rises to **% among gamers. While the appeal of the game itself and its world remain the main criteria when making a purchase, price and the gamer's entourage are also important factors in the choices made.

Criteria favored by the French when buying a video game France, ****, in Source: ****

The French remain attached to the physical format: **% say they prefer it to its dematerialized equivalent, whether for the pleasure of the object or because it can be circulated more easily (***). The store is still the preferred place of purchase, at **%, compared with **% for e-commerce. However, this second channel is favored by daily gamers, **% of whom buy more online. On the other hand, **% of non-online gamers buy from physical outlets.

Reasons why the French prefer physical versions of video games France, ****, in Source: ****

However, this preference for physical media and stores is not reflected in sales figures. Dematerialized software (***) occupies an increasingly important place in overall software sales. Its proportion has risen from **% to **% between **** and ****. Dematerialized products offer a number of advantages that appeal to gamers: they are more accessible, more practical, benefit ...

2.3 Different assessments of the major video game players

The French are more familiar with console manufacturers than with publishers. The Nintendo, PlayStation (***).

Aided awareness of several major video game companies among French consumers France, ****, in Source: ****

The level of appreciation also differs widely according to gender and age group. Activision, associated in particular with the war title Call of Duty, and Electronic Arts, publisher of numerous sports games, are more popular with men and young people. Nintendo, on the other hand, which targets a wider audience, is more popular with women, and maintains a higher level of appreciation among older age groups.

French people's appreciation of several major video game players France, ****, in Source: ****

French people's approval ratings for several major video game companies France, ****, in Source: ****

2.4 Favourite genres and best-selling video games in France

Mobile and casual games will top the list of genres most played by the French in ****. Several genres follow close behind, such as role-playing and adventure games, platform games and sports games. Multiplayer games come eighth. On average, a French gamer plays three different game genres.

Most popular video game genres in France France, ****, % of total Source: ****

These preferences are reflected in the rankings of the best-selling video games in France in ****, combining the physical and dematerialized markets. On consoles, the top ** includes mainly action, adventure and sports games. Nintendo appears three times(***).

Top ** video games sold on consoles France, ****, by volume (***) Source: ****

On PC, the focus is on action titles, role-playing games (***) publish two.

Top ** video games sold on PC France, ****, by volume (***) Source: ****

For mobile games, precise data are harder to come by. For free applications, which account for **% of the mobile video game market, it is possible to rely on estimates of the number of downloads released by Google Play and iOS. [***]

The process can be replicated for pay-per-use applications, for which it is also possible to find out which ones have generated the most revenue. [***]

2.5 Stable digital equipment rates

The main media used to play video games are as present as ever among the French. Between **** and ****, the equipment rate for game consoles and computers hardly changed at all, gaining just *.* points for consoles and *.* points for computers. On the other hand, the rate for smartphones has risen by *.* points.

The French therefore remain solidly equipped to play video games, and even better equipped for mobile games.

change in the number of games consoles, computers and smartphones in France France, ****-****, in Source: ****

3.1 Value chain and market organization

The video game market can be broken down into several key players:

Development studios design games. They may be independent or part of a larger group. Publishers are responsible for publishing, distributing and promoting the game. They may also intervene upstream to help finance the game. Some publishers have their own in-house studios, and may also buy out other independent studios. Hardware manufacturers build game consoles and accessories. Distributors then market the games and hardware. They can be physical (***).

The same company may be present at several, or even all stages of this value chain. The sector's biggest groups, the publishers, may develop their own games via their studios, then distribute them for direct sale, generally via their online store. Some also manufacture their own consoles (***).

3.2 French studios concentrated in the Paris region

In ****, there were almost *** video game studios in France, representing **% of the total number of companies active in the French video game industry. Most of these are small companies: **% had annual sales of less than ***,*** euros, and only **.*% had sales in excess of ** million euros. [***]

Just under half of all studios are based in the Paris region. Other regions, such as Auvergne-Rhône-Alpes, Occitanie and Nouvelle-Aquitaine, are home to around fifty. [***]

Some French studios are also publishers, like Ubisoft, Voodoo or Gameloft. Others started out as independents before being bought out, like Arkane Studios, now owned by Microsoft, or Quantic Dream, owner of China's NetEase.

Differences in positioning can also be observed: Voodoo and Gameloft, for example, specialize in mobile games.

3.3 Dynamic publishers in France and around the world

Publishers are the main players in the video game market. Their role is central, and they can also combine the functions of developer and distributor. The biggest publishers generate several billion dollars in sales every year.

To consolidate their position against the competition in this growing market, but also to position themselves in buoyant segments such as mobile games, publishers are increasingly resorting to external growth operations. As a result, the market has been undergoing a concentration trend in recent years, marked by a number of major acquisitions:

Microsoft's $** billion takeover of Activision Blizzard in ****; Take-Two Interactive's takeover of Zynga in ****, for $**.* billion; Tencent's takeover of Supercell in ****, for $*.* billion; Microsoft's takeover of ZeniMax in ****, for $*.* billion; Activision's purchase of King in ****, for $* billion; Nuverse's acquisition of Moonton in ****, for $* billion; Sony's takeover of Bungie in ****, for $*.* billion. [***]

There are also several noteworthy acquisitions:

Tencent acquired a *.*% stake in Ubisoft in ****, before investing *** million euros to acquire **.*% of the holding company controlling Ubisoft, Guillemot Brothers Limited, in ****[***] ; Sony invested $*** million to acquire a minority stake in Epic Games in ****[***] ; Nintendo paid nearly $*** million to acquire a stake in DeNA in ****[***].

Publishers have enjoyedrenewed interest since the Covid-** crisis. In ****, **% of French ...

3.4 Increasingly paperless distribution

Video game distributors fall into two broad categories: physical and dematerialized. The former have physical sales outlets and sell games, in CD form, as well as consoles and accessories. They also focus on resale and second-hand games, a segment that is still relevant in the video game industry. The latter are online stores enabling players to download the games and digital content of their choice. Several publishers have launched their own digital sales platforms.

While physical distribution remains omnipresent for hardware (***), dematerialized distribution continues to gain ground for games, content and applications. In ****, **% of video game software sales in France will come from dematerialized distribution, an *-point increase on ****. [***]

More frequent promotions, easier access via download and a more abundant offer are all advantages in favor of dematerialized sales. On Steam, the leading digital distribution platform for PC games, the number of titles available has risen sharply in recent years, almost doubling between **** and ****.

number of games available on the Steam platform World, ****-****, in units Source: ****

4.1 A software-dominated offering

The video game market can be divided into two main segments: hardware and software.

Hardware includes :

game consoles, which can be fixed (***) or portable ; computers and smartphones, whether dedicated to gaming or not; accessories (***)

For its part, software refers to :

video games, whether on consoles, PCs or mobiles ; additional content linked to these video games (***); subscription services (***).

In France, software will account for around **% of the market in ****, with **% for console software, **% for mobile software and *% for PC software.

Hardware is largely dependent on technological developments: sales of consoles and PC peripherals are linked above all to advances in hardware in terms of power, performance optimization, portability and so on.

On the software side, additional content plays an increasingly important role, accounting for **% of total sales in this segment in France in ****, compared with **% in ****. Publishers are multiplying the possibilities for acquiring additional content, notably via microtransactions. Dematerialized games are also becoming increasingly popular, with a software market share of **% in ****, * points higher than in ****. conversely, physical games will fall from **% to **% in five years. For publishers, who are increasingly offering their titles on online stores, marketing a game in this way tends to reduce manufacturing and logistics costs, while avoiding ...

4.2 Rising prices for the biggest games

The production price index for French electronic game publishers (***) has been falling sharply since ****. However, this trend seems to be specific to France, where there are more small, lower-cost publishers than large, globally active groups.

evolution of the production price index in electronic game publishing France, ****-****, base *** in **** Source: ****

internationally, the market's biggest publishers have seen their costs rise in recent years, due to both general inflation and the technical progress of consoles and PCs, which lengthen production lead times. Marketing and promotional budgets have also increased. As a result, "triple A" games - the most eagerly awaited high-end titles - have seen their selling price rise from ** to ** euros between **** and ****. [***]

This increase can also be explained by the omnipresence of promotions in the video game market, particularly on dematerialized stores. Publishers are aware that they can increase their base price without losing their customers, since those who can't buy the game on release because the price is too high will wait until the sales to buy it. [***]

On Steam, the leading digital distributor of PC games, ** promotional events - generally lasting a week - were held in the first half of the year alone. took place in the ...

4.3 A diversity of business models

Single-unit sales remain central

Single-unit sales of games remain fundamental to the video game industry. Publishers are able to devote an ever-increasing budget to their productions, not only because sales have risen in recent years, but also because they are able to recoup more revenue through digital sales, where costs and intermediaries are lower.but they are also able to recuperate more revenue through digital sales, where there are fewer costs and fewer intermediaries. The most polished "triple A" games can therefore sell millions of copies, ensuring publishers' profitability. [***]

At the beginning of ****, Ubisoft even mentioned a "quadruple A" game for its Skull and Bones title, justifying its selling price of ** euros by ultra-premium production. [***]

Independent games, which do not benefit from the support of a publisher, also rely heavily on unit sales. The democratization of online sales, through digital stores that enable studios to market their titles directly, has largely contributed to the explosion in the number of independent games available. On Steam, the leading PC game distribution platform, the number of independent games released each year tripled between **** and ****. The difficult economic situation and the slight downturn in the video game market after the euphoria observed during the Covid-** ...

4.4 Virtual reality and cloud gaming develop slowly

Virtual reality: still a small segment

Heralded as a major technological development, virtual reality (***) has yet to deliver on all its promises. In video games, the segment still suffers from a lack of major titles, with production remaining stable over the last few years and not increasing. On Steam, the leading PC game distribution platform, the number of VR games released each year has not changed since ****.

evolution of the number of VR games released on the Steam platform World, ****-****, in units Source: ****

VR is also penalized by the high cost of the headsets and equipment needed to use it. In ****, **% of French people had already experimented with virtual reality, but only **% owned a VR headset and **% a suitable controller or joystick. **% felt that the cost of these devices was too high. While video games remain the main arena for experimenting with this technology, the obstacles cited to VR adoption remain numerous: lack of interest (***), etc. [***]

Nevertheless, the market for virtual and augmented reality video games continues to grow. By ****, it is expected to account for $**.* billion in revenues worldwide, making the sector the main revenue generator for this technology, ahead of healthcare and engineering.

Revenues generated by virtual and ...

4.5 Esport, a tool for attracting newcomers to the video game industry

**.* million people consumed or practiced esports in France in ****. [***]

Sales generated by the French esports sector almost quadrupled between **** and ****, rising from €** million to €*** million, representing average annual growth of **%. Taking into account the adjustment linked to the overall representativeness rate of the players concerned by the study carried out by the Observatoire économique de l'esport, sales in **** could even reach *** million euros.

sales growth in the esports sector France, ****-****, in millions of euros Source: ****

Esport is a way of attracting a new audience to video games, and building loyalty among existing ones. For the publishers involved, the discipline also generates additional revenue, notably via microtransactions, for example by offering cosmetic items for sale linked to teams, competitions, etc. The synergy seems all the more optimal given that many esport games(***) are free-to-play, with revenues generated by in-game microtransactions. Consumers are already familiar with this system.

5. Regulations

The PEGI rating system

The PEGI (***). It evaluates video games and mobile applications according to their content, then classifies them according to a recommended minimum age for accessing that content:

* years * years old ** years old ** years old ** years

The system also highlights the presence of certain elements:

foul language violence scenes likely to frighten images likely to incite discrimination use of drugs, tobacco or alcoholic beverages nudity or sexual innuendo betting and gambling purchase of virtual goods, some of which may be random

This information appears on the game's cover, or on its online purchase or download page.

Two independent institutes are responsible for rating games: NICAM (***) for PEGI **, ** and **. The PEGI system brings together more than *,*** member companies and is used by the vast majority of studios and publishers in the video game market. [***]

6. Player segmentation

• Activision Blizzard
• Nintendo
• Electronic Arts
• Gameloft
• Focus Entertainment
• Ankama Games
• Quantic Dream
• Arkane Studios
• Homa Games
• Voodoo
• Plug In Digital
• Ubisoft
• Gamecash
• Gamestream
• Micromania-Zing
• Motion Twin
• Nacon (Bigben Interactive)
• Microids
• Bandai Namco Entertainment
• Sony Interactive Entertainment
• Take-Two Interactive
• Tencent Games
• NetEase Games
• Valve
• Epic Games
• Capcom
• Riot Games
• Shadow
• ISCool Entertainment
• Webedia
• Gameflix