Survey Shows Limited Console Spending Impact From Mobile/Social Growth

A new survey of the video game market by the Cowen Group suggests that the rise of cheap and free social and mobile games hasn't significantly impacted the market for traditional console games. Only six percent of all gamers in the survey said they were spending less on console games because of time spent playing on newer platforms such as Facebook or smartphones. Among self-identified "hardcore" gamers, only one percent reported a reduction in traditional game spending. The survey paints a less rosy picture for the casual-gamer-dominated portable console market, however. Over the last five years, Cowen says self-identified casual gamers are 29 percent less likely to use a dedicated portable system, with most of that drop coming in the last two years. That finding is bolstered by a recent Flurry report that estimated revenue from mobile games surpassed that for portable games in 2011. Overall, though, Cowen said its survey supports the conclusion that AAA games aimed at core gamers "remain the best investment for video game publishers despite changes to the structure of the video game industry." As far as hardware, Cowen said consumers are looking to spend roughly $200 on average on HD consoles, somewhat below the $249 asking price for mid-level Xbox 360 and PS3 models. Cowen thinks further price cuts for these systems could significantly increase sales.