Toys and Games in Western Europe

Delivery

This report comes in PPT.

Key findings

Microsoft now number one in Western European toys and games

Microsoft’s acquisition of Activision Blizzard saw it take control of hugely popular video games titles such as Call of Duty, Candy Crush and Warcraft. It also saw Microsoft become the leading company, ahead of Sony and Nintendo, in the Western European toys and games market.

“Kidults” will remain an important consumer segment for future value growth

With birth rates low or even declining in some markets, the lucrative kidult consumer base continues growing in importance. Such consumers are often drawn to toys for nostalgic reasons or as a collector’s item. This trend can help fuel the growth of more sophisticated products, particularly given the average kidult’s greater spending power.

E-commerce share growing, but specialist stores still have a role to play

Retail e-commerce is the heavily dominant sales channel for video games, particularly software, and also continued to gain share in traditional toys and games in 2023. Nevertheless, specialist stores still remain an important channel for traditional toys and games, which, in addition to enabling consumers to see and handle potential purchases, can also can create a "wow" experience through in-store events.

Digital video games will continue gaining share

Digital video games will continue to gain share from physical formats. Digital games remain popular as consumers appreciate being able to quickly download and play the game following installation. In addition, digital games do not take up any storage space in the home. Both physical computer games and console games are expected to continue declining in the coming years as consumers increasingly move away from purchasing physical copies.