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Popularity of Computer Games Hampering Growth of Traditional Toys and Games Market According to TechNavio - More children are asking for computer and video games in place of more traditional games and toys, which is impacting market growth - TechNavio.com
Popularity of Computer Games Hampering Growth of Traditional Toys and Games Market According to TechNavio

 

PRZOOM - /newswire/ - London, United Kingdom, 2014/04/28 - More children are asking for computer and video games in place of more traditional games and toys, which is impacting market growth - TechNavio.com.

   
 
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TechNavio, the independent tech-focused global research firm, reports that computer games are giving traditional toys and games a run for their money, with the market only posting a CAGR of 4.17 percent from 2013-2018.

In a recently published report on the Global Toys and Games Market, TechNavio analysts indicate a strong preference for computer games among children is significantly hampering market growth.

“Computer and online games are increasingly replacing traditional toys and games and there is a growing market for digital games targeted at children,” says Faisal Ghaus, Vice President of TechNavio Research.

“Consumer loyalty to traditional toys and games is low, with children increasingly switching to computer games and preferring online and computer gaming.”

On top of the strong preference for electronic gaming, even among young children, vendors in the toys and games market also experience intense competition.

Because of increased price competition, product differentiation, low brand loyalty, and the entry of new vendors, existing vendors in the Global Toys and Games Market such as Mattel Inc. are witnessing a decline in profit. The new entrants are more focused on customer requirements and are developing new designs/varieties of toys and games. Cost-conscious customers prefer to spend money on low-cost toys and games rather than premium brands, and this further reduces the sales potential and profit margins of vendors/retailers selling premium brands.

The TechNavio report points to a few factors which will help sustain some modest growth in the market over the forecast period. One such factor is the number of licensed toys and games on the market, which draw on popular children’s characters to help in sales.

“The popularity of children’s TV shows, cartoons, and movies has created a number of popular characters as well as toys and games based on these characters. For instance, the success of Dora the Explorer, and Spiderman have spurred the sales of toys and games in these product lines,” says Ghaus.

To determine the scenario for these vendors in the next 3-4 years, TechNavio analysts have conducted in-depth analysis of the impact of market drivers, challenges and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.

If you are interested in more information on the Global Smart STB and Dongle Market, including growth drivers, challenges and trends as well as vendor profiles, please send an e-mail to media[.]TechNavio.com.

About TechNavio

TechNavio is a leading global technology research and advisory company. Founded in 2003, TechNavio has about 200 analysts globally and develops over 2000 pieces of research every year. We cover more than 500 technologies across 80 countries.

We focus on emerging trends that can shape a market, and model these trends using a mix of quantitative and qualitative tools in our proprietary research methodologies in order to build forecasts across market segments and geographies. These forecasts and analysis are used to help our customers identify new and existing opportunities in their markets. We also help customers assess their competitive position in a constantly changing technology market scenario.

TechNavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Our analysts obtain the information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

Our large and growing base of happy customers include technology suppliers, end users, consulting companies, investment firms, research institutes and media worldwide.

 
 
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Popularity of Computer Games Hampering Growth of Traditional Toys and Games Market According to TechNavio

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