Gaming PC market continues to grow in Malaysia
By Feras Ibrahim June 27, 2017
- Gaming PCs are declared as the highest revenue-generating product within the PCD category
- The gaming PC market value in Malaysia was US$47.03 million in 2016
VENDORS, tech suppliers and end users should pay attention to the gaming PC market as it is growing exponentially in Malaysia.
You can see noticeable areas, stands and kiosks in almost every mall or traditional dealer centres that are dedicated exclusively for gaming PCs because of the growing popularity in Gaming PCs.
IDC defines gaming PCs as high performing personal computing devices that are designed, branded and advertised as a gaming PC by their respective vendors.
IDC data showed that there was an increase by 36.2% year-over-year (y-o-y) growth in the gaming PC sell-in shipments to Malaysia last year, and it is predicted to continue growing rapidly in 2017.
The traditional PC market shares were gradually cannibalised when tablets and high-performing smartphones were introduced to the market in 2012. Consumers started to purchase smartphones and tablets to replace their PCs. Many industry experts predicted that the PC apocalypse will lead to the end of the PC era.
Spectators were not aware that the tablets and smartphones were not able to replace PCs since it could not outpace the high-performing applications and functionalities. As the gaming PCs are rapidly tapping into the mainstream market, it will help in reducing the overall shrinkage of the PC market.
The gaming PC market captured a significant growth when Dell and Asus introduced its Alienware products and Republic of Gamers series respectively in 2010.
Gaming PCs captured a unique market growth despite setbacks such as controversial and unethical issues due to parental concern over gamers being highly exposed to violence, religious prejudice, racial propaganda and other issues.
Apart from that, the presence of console gaming devices has also created some impediment to the growth of the gaming PC market.
The two most popular game consoles are currently Sony's PlayStation 4, and Microsoft's Xbox One. These companies pioneered the market movement and solidified their presence in the gaming category.
Gaming PCs generally cost more than console gaming devices, however, there will be continuous growth in shipments as more entry level gaming PC machines are entering the market.
Based on my opinion, despite the existing competition with console gaming, the gaming PC will continue growing as it serves more functionalities to the end users.
Gaming PC devices are convenient, flexible and user friendly as they can always be upgraded and provide gamers more options to control their gaming performance.
IDC Malaysia tracks the gaming PC market in depth and foresaw an emerging trend, whereby the gaming PCs are in focus by companies, vendors and channel partners in the market and it can be further explained by the increase in noticeable areas, stands and kiosks in almost every mall and traditional dealer centres that are dedicated exclusively for gaming PCs.
Why are gaming PCs in high demand?
- Traditional PC market shrinkage: There is an obvious decline in the traditional PC market. Hence, vendors and channel partners will naturally gravitate towards a high-margined-generating device that is growing to keep their presence in the market.
- Gaming PC Spending growth in Malaysia: The gaming PC market value in Malaysia has been soaring. In 2016, the market value recorded US$47.03 million and IDC predicts it to top US$60 million in 2017.
- High profit margins per gaming PC: It’s always about the cost and fortunately gaming PCs can be safely declared as the highest revenue generating device within the PCD (Personal Computing Devices) category, which includes traditional PCs and tablets as well. 2016 gaming PC average selling Price in Malaysia was (RM5,200 ASP).
- Connectivity: As internet connections become better and faster these days, the connectivity between gamers increases, since most games are depending on connectivity.
- Lower-cost gaming PCs: Companies and vendors are continuously introducing new gaming PC products and models as an alternative, an emerging trend of lower cost gaming PCs have been entering the market. Models like Dell Inspiron 5000 Series Gaming (starting at RM3,500 ASP) is a functioning proof of low cost gaming PCs.
- Newer innovation: Newer, sleeker and more reliable designs and technologies are introduced to the market, which helps in promoting the gaming PC category such as better GPUs, RAM, Processor and enabled ready-to-use VR gaming feature.
Feras Ibrahim is a senior market analyst for the Client Devices Group of IDC Asia/Pacific.