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From video hardware to entertainment hardware The gamer opportunity for smart TVs

Tim Mulligan
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20,000 foot view: Smart-TV-owning gamers skew older and combine increased consumption spend with an increased willingness to pay for content and entertainment more broadly. Smart-TV owners over-index for games consumption and in-game spending, offering an unparalleled platform distribution opportunity for cross-platform games distributors such as Xbox Game Pass. Smart-TV owners can accelerate this trend by increasing games peripheral device interoperability (e.g., console controllers that integrate with smart TV operating systems). Successful execution will see the smart TV consolidating its role as the home smart entertainment hub. Smart-TV manufacturers that execute a games partnership strategy early will benefit from a distinct selling point over smart-TV manufacturers without implemented games strategies.

Key insights

  • Smart-TV owners            on all gamer behaviours compared            the consumer average
  • Smart-TV-owning gamers            older than the gamer average,                       being            years old
  • Smart-TV-owning gamers            for in-game spending compared to            gamer average, with            spending            or            per month on in-game purchases           
  • Smart-TV-owning gamers            against gamers for PlayStation Now            PlayStation Plus, but under-index for            Games Pass usage
  • The smart            represents an emerging opportunity for            and distributors seeking to unlock            valuable audiences
  • Games service            present an opportunity for smart-TV            to distinguish offerings from competitors and            from a ‘video hardware’ mindset            an ‘entertainment hardware’ one
  • In doing            one of the most valuable            segments will be incentivised to consolidate games            video hardware purchases

Companies and brands mentioned in this report : Alphabet, Amazon, Apple, Apple Arcade, Android TV, Azure, Comcast, LG, Samsung, Sony PlayStation Now, Sony PlayStation Plus, The Fire TV Omni Series, XClass TV, Xbox, Xbox Games Pass