Path 1:  Looking across Alternatives

This is a transcript of the conversation that took place.

Mike:  Does anyone object to me starting again?  Thanks.  OK … let’s talk about what we heard from those who weren’t just troubled about video gaming but who were really against the whole industry.  We’re talking about Path 1 here, I believe – Looking Across Alternatives. As we discussed before we did our Visual Exploration, the main Alternatives, we believed, to video gaming were formal sports teams, at school and in the community, casual sport like neighborhood basketball and football, attending sports games, casual playing at home, pets and other toys, and reading.  We ruled out watching TV and playing on the computer since we considered these as part of the Strategic Groups in the ‘screen-time’ industry.  I visited sports halls and schools and watched kids playing games outside.  I had the chance to talk to some of them.  What I mostly heard was that they couldn’t afford a video game console, and having to then pay a considerable sum more for a game was beyond what they were willing to do.  They would rather buy another ball, another pair of sport shoes or go watch a professional team.  More than that, they just liked being with a group of other kids and the enjoyed fun of playing sport with them – getting rid of their energy.  They just liked moving around after a day of having to keep still at school or at work. 

Rick:  I did the same as you, Mike, visiting schools and the like and talking to those who said that occasionally they might game if at a friend’s house that had a console.  The cost issue was a big one for them.  Also, they said that felt foolish when gaming because, although they were good at sports, they felt clumsy when holding a controller and not knowing what all the buttons were for.  They also said that they would rather be with a group than with one other person.

David:  I think I would echo everything that you said, Rick – and what you were saying, Mike.  Speaking to adults who coached these kids, they said that it was enormously beneficial for the children’s health, physical and mental, to be moving around and letting energy out in a positive way – who knows how much bad behavior and trouble has been prevented as a result of the positive effects of getting one’s energy out in a fun way.  I asked the kids I saw if they ever did play computer games.  Most of them said that they had played on a friend’s computer but their parents didn’t like the idea of them doing this and many were really not familiar with how game consoles worked.  I asked them about the quality of the sound and graphics on computer games, and they seemed to be quite happy with what the computer provided – in other words, quite a low level!

Sally:  I heard much the same thing … about the lack of interest in a really sophisticated hand device, or in surround sound and amazing graphics.  It seemed that if the main point of the game was there, there was little demand for anything else.  I asked most of those I talked to why they did not buy a video game console.  Some said that although they could perhaps afford it, they had better things to spend their money on – like different sets of sport shoes for different games, different clothes and there was always a better ball and skateboard to buy.  The person with the best ball was always the one who could pick his or her team first!  Kids!

David:  Talking of hand devices, did any of you notice how many even young children these days have a mobile ‘phone.

All:  Yes.

Barb:  What’s your point, David?

David:  (Laughing) Be patient … I’m coming to it … I noticed that no matter what they were doing, they seemed to be able to carry on a grunting conversation with someone on their ‘phones.  Occasionally, one or two would drop out of the game and talk.  I saw one poor kid who had her mobile tucked into her sports shoes and at one moment after she jumped and landed the mobile flew through the air and broke into many pieces as it hit a fence.  I wonder why the mobile ‘phone companies don’t make it more convenient for kids who play sport to play with their mobiles strapped on them – like an MP3 player.

Barb:  That’s a great idea, David!

Mike:  Let’s stay focused, team!  Or at least, if you want to follow that idea, how does it play into our market?  So … Sally, how big do you think this market is, potentially?

Sally:  I’d say if we created a successful offering for this type of noncustomer we’d expand the market somewhere around 22 to 27 %.

Rick:  I’d agree with that, Sal.  We need to find a way to make video gaming more active.  I spent a lot of time sitting in three different school sports stadiums (after getting permission from the head teachers!)  I then went to sports stores to see what the cost of all the sports kit that these children had was – it was hundreds of dollars!  It really didn’t seem to be a problem of affordability – it was a matter of choice.   Sports games were OK – choosing your team and competing with them, but it was not the same as playing sport yourself!  I asked them if they could name the game consoles they were playing on and if there was any difference between them, and they said “no”.  We know that there are at least 3 generations of technology still in use out there, and yet these kids could not tell the difference between the leap in graphics and sound capability that has been achieved over the last 12 years and also in the sophistication of the controller.

Sally:   Ah … before I forget … this was something else that they mentioned – the time taken to learn what all the buttons did from one person’s console to the next was really not worth the effort!  They could master a couple of buttons, that was all, and they weren’t ashamed to admit it!

Barb:  I would support everything that has been said.  I am thinking hard about how to make our video gaming sportier.  I was really interested in the other toys in the toy cupboard and visited ten different homes.  I asked children what their favorite toys were and why.  To my surprise, the favorite toys were quite modest – they liked making something themselves – Lego was still a big favorite.  They liked to touch and feel what they were making.  Skipping ropes were also a favorite – they seemed to have the same repetitive soothing effect of pressing a button in a video game, but with the benefit of the exercise.  Frisbees were still very popular, and just playing with pets (if they had these) – moving around – was popular.  Roller blades and jumping on a trampoline were also great favorites – being with friends, not necessarily playing sport, but being active.

I met one really great family – I have never seen so much sport equipment in one place in my life – one thing the mother in the family said was that she’d buy a “video game thing” … her words! … if she could find a place to put it … something that didn’t take up too much space.  Did any of you hear this as well?

Others:  Can’t say I did/No

Rick:  Ah, that reminds me … I heard the other day through my secret industry grapevine that Purple Plums was about to invest heavily in mini-CDs specifically for the space saving reason – apparently their marketing department believe it is where the next big technology breakthrough is going to happen … just thought I’d share that with you all.

Mike:  Great, thanks, Rick – well there are some real challenges there if we are to get this type of noncustomer to come into our market.  Would you say there were more noncustomers of this type out there or those like the parents we spoke to as part of Path 3 who wanted control over gaming?

Sally:  For my part, I would say the Path 3 type of noncustomer were definitely a much larger group

Mike:  I think so as well – I put it at 30% … I think I said so.  This type represents a smaller number of noncustomers

Rick:  Yes – and the parents we spoke to for Path 3 are the ones with the money anyway … aren’t they?

All:  Good point/Sure thing

Sally:  Do you think so?  I give Daniel (my son, Mike) $20 a week – I sometimes have to borrow from him!   I think the Path 5 kids do have the money to be buyers. But … I agree that the Path 3 noncustomers could outnumber the sporty kids … intuitively.

Mike:  If we can find a way to get the advantages of the sports alternative into our video gaming it could be good money for us.