17 minute read

GAMING

Growth in gaming market accelerates despite shortage woes

-BY EMILY BENCIC

There are around 17 million gamers in Australia – or two-thirds of the population – according to recent statistics from the Australian Department of Foreign Affairs and Trade, and spending reached $4.92 billion in 2021, making it the second-highest consumer revenue-generating sector, data from PwC has shown.

The peripheral gaming market (including gaming headsets, monitors, mice and keyboards, and excluding consoles) has been cycling over a strong year prior that saw units increase 17% and value increase 23%, according to GfK data. Hence, overall annual changes rates have slowed to single digits influenced by larger categories within the space. Revenue for gaming headsets was up 2% and monitors were up 5% for the year to September 2022.

According to Samsung Australia research, 96% of hardcore gamers multi-task as a norm while gaming. Two in three gamers search for tips on the internet while playing, two in three watch movies, shows or videos while gaming, more than half look at social media content while gaming, and over half are on voice calls or video chats with friends while gaming.

Euromonitor data has shown that global shipping issues and reduced company production resulted in shortages of newly released static consoles in Australia, which held back growth in the category. Despite demand outpacing supply for next-generation consoles, companies such as Sony and Microsoft had to reduce production due to the setbacks in the semiconductor industry.

The pandemic stimulated demand for VR headsets, as consumers invested in new ways to improve their gaming experience. For example, Apple’s pending launch of a mixed reality headset and Google’s Project Iris announced in January 2022, with the aim of building its own AR headset to take on Meta and Apple. As the metaverse gradually evolves and takes shape, these next-generation VR/AR devices are set to be instrumental in providing users with rich hardware experiences that can match the sophisticated software technology on the digital frontier. As a result, VR/AR headsets is likely to see strong growth amongst the buzz of the metaverse over the forecast period, according to Euromonitor.

DELL TECHNOLOGIES

Adam Lee Director & General Manager – Consumer and Small Business

Gaming has experienced sharp growth over the last couple of years as consumers had more time at home and people were looking for ways to connect with one another.

“There has been more of a return to normal this calendar year, however, gaming remains a strong and competitive category,” Adam Lee said.

Dell is constantly bringing new technologies to market across all business units from new product releases to back-end systems to support customers.

There has been more of a return to normal this calendar year, however, gaming remains a strong and competitive category.

“Within the gaming space, one of the most revolutionary developments has been integrating Element 31 into the Alienware X series of gaming laptops to improve cooling allowing the design to be thinner.

“Element 31 delivers a 7.5-degree improvement over conventional technologies, a 25% improvement over previous solutions, and delivers gamers the same performance with the world’s most powerful sub-16mm, 15-inch gaming laptop.”

Thanks to resilience, agility and deep long-term supplier relationships, supply chain execution is solid for Dell. “Our supply chain and end-to-end technology portfolio continues to deliver stability as we address market fluctuations.

Dell G15 15.6-inch Full HD Gaming Laptop (12th Gen Intel i7)

RRP: $2,299

“As we’ve demonstrated over the years, we’re built to outperform regardless of the macroeconomic environment.”

Dell offers a premium warranty on all XPS laptops which provides for a 24/7 helpline and on-site servicing within 48 hours in all capital cities. This warranty is also available to purchase for all Dell PCs sold throughout Australia and New Zealand.

Dell Technologies will continue to launch new technology products with a focus on the ethical delivery of product in an increasingly sustainable manner, working towards Michael Dell’s vision of a closed loop supply chain by 2030.

- 512GB SSD storage and 16GB RAM

- NVIDIA GeForce RTX 3050 Ti 4GB GDDR6 dedicated memory

- Game Shift macro key launches game-ready settings

- Improved thermal design, SSD hard drive, 100/100 CPU-GPU TDP, optimised tuning, 12th Gen Intel ADL-P i7 12-core processors

SAMSUNG ELECTRONICS

Phil Gaut Senior Director – Display & Brand Memory

In the past 12 months, Samsung has seen two key trends drive expansion in the gaming category –the first is demand for ‘realism’ due to the rise of open-world games and increased exploration of the Metaverse.

“While the Metaverse sees games and real-life overlap, the large-scale, realistic open-world games are growing in popularity resulting in a need for high quality picture and cinematic sound to help gamers feel immersed in these new worlds,” Phil Gaut said.

Australian gamers are more inclined to buy wider screens and rotatable screens that maximise display real estate and can be configured to suit multi-tasking.

The second trend is multi-tasking while gaming. As a result, Australian gamers are more inclined to buy wider screens and rotatable screens that maximise display real estate and can be configured to suit multi-tasking.

“With these insights in mind, we’ve reimagined what gaming monitors should do and developed an Odyssey line-up that features new curved screens and industry-leading performance to enable a superior experience for every level of gamer,” Gaut said.

“With the Odyssey Ark at the helm of the range, and upcoming Odyssey G6 and G7 Smart gaming monitors, and the Odyssey G8 OLED gaming monitor; Odyssey Monitors provide deeper immersion, allow for socialising live-in game, and enable gamers to multi-task in play.

Samsung Odyssey Ark Gaming Monitor

RRP: $4,499

“Odyssey Ark represents a new frontier in gaming, not simply because of its world-first 55-inch 1000R 4K rotating curved form factor, but because it answers the needs of hardcore Australian gamers no matter whether they are competing, exploring, or multi-tasking.

“The Odyssey Ark is also one of the first monitors with a 240Hz refresh rate performance, offering super-realistic picture quality, rapid response times and premium performance. It is Samsung’s first Smart TV enabled gaming monitor, giving Australians even more choice when it comes to entertainment via flexible functionality.”

- Sound Dome technology featuring AI Sound Booster and Dolby Atmos

- Utilises Samsung’s Quantum Matrix technology and newly added 14-bit processing

- 55-inch screen with 1000R curvature and cockpit mode to rotate height adjustable stand

- Flex Move Screen adjusts the screen size between 55- and 27-inches and switch the ratio between 16:9, 21:9 and 32:9

LENOVO

Ben Williams Gaming Business Development Manager

Over the last 12 months, Lenovo has seen an increase in gaming device sales, which the company attributes to consumers looking for a singular device which offers gaming performance coupled with productivity features.

“The power we put into our devices works equally well delivering high quality graphic or video rendering, music creation or even making social media content as well as playing the latest games, and customers are responding to our devices providing this hybrid use in a more stylish package than traditional gaming PCs,” Ben Williams said.

We introduced the first gaming laptop with a 16:10 aspect ratio screen in a 15-inch chassis, which has been popular for gaming, content creation, day to day life and work.

Lenovo frequently engages with customers to understand the features and specifications they would like to see. “For example, our customers like the 15-inch form factor for gaming devices because it offers a sweet spot for portability and function. We also introduced the first gaming laptop with a 16:10 aspect ratio screen in a 15inch chassis, which has been popular for gaming, content creation, day to day life and work.”

Lenovo’s 7th generation Legion devices, launched earlier this year, feature a variety of improvements and new technologies including the latest Intel Core, AMD Ryzen and NVIDIA GeForce RTX processors to ensure high performance for single core and multi-core operations.

Lenovo IdeaPad Gaming 3 (AMD)

RRP: From $1,759

“Overall, our latest devices have been purpose built for tasks like content creation and daily productivity, in addition to gaming. We have paired these devices with exclusives beloved by Legion fans such as the advanced thermals of next-level Legion Coldfront 4.0, the hair-trigger speeds and improved ergonomics of Legion TrueStrike keyboard, and optimised tuning via Lenovo Vantage for gaming.”

Lenovo believes it has navigated supply chain issues relatively well and continues to fare better than many in the industry given its operational excellence. “Fortunately, with one distribution partner, Synnex, that supports our entire retail network, we are able to bypass roadblocks that vendors with multiple distribution partners may face. Working with Synnex, our team reviewed inventory on a weekly basis and pivoted where required to ensure deliveries were available to retailers and customers,” Williams said.

When asked about after-sales service, Lenovo supports retailers by delivering above exceptional service levels to customers. “For example, Lenovo offers in-store repair at Harvey Norman reducing turnaround time from 14 days to five days. Similarly, we offer immediate replacement of devices through Big W and Amazon.”

LG ELECTRONICS

Tony Brown Marketing Manager – Home Entertainment

There has been a consistent increase in demand and usage of home entertainment products, with the gaming category experiencing huge growth, reflected in heightened demand for LG’s smaller OLED TVs, positioned as the ideal console gaming companion.

“In 2021, our 48-inch C1 OLED model was a huge success, selling over four million units globally, more than double 2020. We attribute this to the impressive picture quality and gaming tech specs that were typically not found in more expensive TV models,” Tony Brown said.

“Following positive feedback on the 48-inch C1 OLED from the gaming community in 2021, we launched the 42-inch C2 OLED TV in 2022. We are also offering PC gamers the ultimate OLED gaming experience with the new 48-inch UltraGear OLED gaming monitor.”

LG UltraGear 48-inch UHD 4K OLED

RRP: $2,599

LG was the first TV manufacturer to feature NVIDIA G-SYNC compatibility on its TVs, allowing users to enjoy gaming without tearing, stuttering or input lag. “The Game Optimiser and Game Dashboard function is a central location for gamers to access and adjust gaming features easily, including VRR, ALLM and eARC, which enables fast moving content at high resolutions and smooth synchronised audio and graphics. The new Dark Room Mode can also be accessed via Game Optimiser, where users can adjust screen brightness for gaming with the lights off.”

LG OLED TVs in 2022 offer support for cloud gaming services including NVIDIA GeForce NOW. Dolby Vision Gaming, which is available on the XBOX Series X, delivers 4K in 120 Hz, meaning XBOX Series X console games can be experienced with greater contrast and natural colours.

Brown said LG has been fortunate to be only mildly affected by supply chain issues. “In saying that, we are extremely mindful that this situation is constantly changing, and that LG and our retail partners can face these challenges at any time in these turbulent times.”

On a final note, he said: “We are the global leaders in OLED TV technology and continue to innovate in this space. The result has seen us showcase the capabilities of flexible LG OLED technology and integrate it across more of our gaming products. We are providing gaming technology that highlights why console and PC gamers should choose LG OLED for their gaming experiences.”

- Combines a 1,500,000:1 contrast ratio and HDR10 to deliver quality gameplay

- Dynamic Action Sync Mode enables gamers to react immediately

- 0.1ms response time and up to 240Hz refresh rate

- LG’s first 4K OLED gaming monitor

HTC VIVE

Thomas Dexmier Country Manager

HTC VIVE’s Thomas Dexmier said in the last 12 months, the gaming category has become increasingly more inclusive, personalised and readily available.

“With more options catering to more gaming styles, personalities and budgets, demand for technology such as virtual reality (VR) is on the rise. Virtual experiences and offerings now extend beyond conventional gaming to include opportunities for collaboration, learning, meditation, exercise and play.”

With more options catering to more gaming styles, personalities and budgets, demand for technology such as virtual reality (VR) is on the rise.

Throughout the year, HTC VIVE has continued to innovate with new offerings and product accessories unique to the VIVE ecosystem with a strong focus on high visual fidelity, ergonomics and comfort, durability, accuracy of the tracking, and power management.

“We continue to grow the best ecosystem of VR products, comprising our core range of headsets and accessories to track hands, bring external objects and props into the virtual world and animate avatars with lifelike expressions. Our products are modular and evolutive to support the constantly changing needs of customers as they progress through their VR journey.”

HTC VIVE Cosmos Elite VR Headset

RRP: $1,699

VR is a complex ecosystem; therefore, HTC VIVE continuously upskills its care team to ensure they understand the technology and various solutions in the range and can provide advanced customer support.

“HTC VIVE has an authorised service partner based in Sydney who handles all reverse logistics for Australia and ensures short turnaround time for customers. This maintains customer satisfaction post-purchase by guaranteeing a smooth returns process with short lead times.”

In relation to the supply chain, Dexmier acknowledged the occasional extended lead times on parts and having to favour sea freight over air, which means accurate forecasting is paramount. “Past performance usually gives us a good indication of future results, but this year specifically, planning well ahead of major campaigns with our distributor and each reseller/ retailer helps land a more precise demand profile for our products.”

- Flip-up design to easily switch between reality and virtual reality

- External tracking with base stations and advanced controllers enable precision and freedom

- Minimised screen-door effect with LCD panels to reduce distance between pixels

- Form fitting headphones for high quality sound resolution and a comfortable virtual journey

LASER

Chris Lau, Managing Director

Laser has witnessed various types of gaming buyers with its GTEK products aimed at prosumers. “With more people spending time at home, we have benefited from extra layers of research when they consider which gaming equipment and accessories to purchase,” Chris Lau said.

“While people are always looking for the best deals and are price conscious, gamers are a little different in that there are some ‘must-haves’ no matter the price, such as a mouse with a certain level of sensitivity and responsiveness.”

In many ways it is being treated as a mature category where retailers expect that consumers are entering the store already knowing what they want, but we know that this is not the case.

Since introducing its first range to market, Laser has taken away a lot of learnings which are influencing future products. “For example, we have discovered how important lighting is to all gamers, whether they are just starting out or a high-level gamer, so we are responding to that. It’s also important that all gaming products have a robust, tactile look and feel – it’s about the mechanical touch to gaming consumers, so both features will be part of our core gaming products.”

While it’s difficult to predict sales peaks, Laser plays the ‘long game’ in certain categories with a solid growth trajectory, and gaming is one of those. “It means that we are not afraid to commit to high levels of stock early, and to hold inventory. The upside to that is our retailers know that our stock is always readily available and can have confidence in committing the shelf space and marketing assets.

GTEK Cyborg 3000 Mechanical Gaming Keyboard GA-CBKB104W

RRP: $279

“That being said, as we commit to high stock levels, there are some key areas that retailers should look at within this category including merchandising that better communicates new features and benefits. We are finding that education in-store is very low with very little to explain in relation to the price and benefits.

“In many ways it is being treated as a mature category where retailers expect that consumers are entering the store already knowing what they want, but we know that this is not the case, especially with many consumers looking to upgrade to gaming accessories for the first time.”

As a local Australian company, Laser prides itself on its after-sales service, something its retail partners are also well aware of.

“If any product issues occur, we make it easy to organise a replacement either via the retailer or the consumer direct. Consumers speak to a real person based in Sydney, we are easy to deal with and ensure problems are quickly resolved.”

- Cherry MX red keys

- Anti-ghosting key rollover

- Memory foam wrist rest

- Dynamic RGB Array with individually backlit keys and reactive and customisable lighting effects

LOGITECH G

Daniel Hall Senior Category Portfolio Manager

Purchasing behaviour in the gaming category hasn’t seen much change but a new wave of gamers has emerged with more diverse customers both in age and gender, according to Logitech’s Daniel Hall.

“With the booming emergence of new gamers, Logitech G launched the Aurora collection –a bespoke range of products designed for women gamers, but not exclusively for women,” he said.

“The products are designed by women, so the products are better tailored to the intended market. For example, a lot of research and development was invested into the G735 headset designed to better fit smaller heads and the G705 mouse, which is physically more nimble, tailored to those with smaller hands.”

In line with the overall gaming market dynamic, demand on after-sales support has witnessed significant changes. The support team has adapted to increased traffic in telephone and web support as well as being introduced to new platforms such as Reddit. “Logitech also has an active team monitoring and assisting customers on most social media platforms.”

Logitech G502 X Plus Gaming Mouse

RRP: $279.95

When asked about supply chain challenges, Hall said logistics has been challenged over the past couple of years. “By working closely with our retail and distribution partners, we have managed to maintain reasonable supply. However, it has been well documented that the demand has outweighed the supply.”

- Next generation of the G502 gaming mouse

- LightSync RGB powersaving play detection

- New Lightforce hybrid optical-mechanical switches

- Hero 25K high precision gaming sensor

HARMAN Amrit Lass

Product Manager

While entry gaming products are still selling well, the market is seeing a shift towards more wireless models to give people greater freedom and flexibility, according to Harman’s Amrit Lass.

“JBL now features a full range of wireless headphones. Two of these models, the Quantum 610 and 810, can charge while playing, meaning that gamers will never miss out on being able to use their headset even if they forgot to put it on charge after their last session,” he said.

JBL Quantum True Wireless Gaming Headset

RRP: $229.95

“We have just launched our Quantum TWS model – a true wireless gaming headset specifically for gaming. This model features a USB-C dongle offering lower latency than a standard Bluetooth connection, as well as True Adaptive Noise cancellation which measures background noise dynamically up to 50,000 times per second and delivers enhanced call quality. We are also expanding our range to include microphones such as the new Quantum Stream.”

JBL provides after hours service and full replacement under warranty for any faulty gaming products. A gamer will never lose their product while it is being assessed at a repair centre.

- JBL Quantum Surround sound solution

- USB-C dongle for low latency

- Two beamforming microphones on each earbud

- True Adaptive noise cancelling and Ambient Aware mode

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