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Video game devices in the connected TV marketplace

Posted on Sep 19, 2012 by YuMe

A new video game system from Nintendo could make connected TV even more popular than it already is.

Video game systems are already one of the most popular ways for U.S. consumers to access the internet from their television sets, and a new offering from Nintendo could make connected TV even more popular than it already is.

The Wii U, the latest system offered by Nintendo, will be available starting November 18. It will offer gamers a number of popular video game titles, but it will also offer owners another portal for accessing the internet. The gaming system will include a television streaming outlet that allows viewers to watch programming from television or from online sources such as Hulu. Additionally, the Wii U will also include a second screen – on its tablet-like controller – that enables users to access the internet while watching live TV from the primary screen, AdAge reported.

According to August research from YuMe and Frank N. Magid Associates, 77 percent of internet-enabled TV users have a game console that allows them to go online. Out of all of the survey's respondents, about 28 percent have a video game console as the only connected TV device, while 43 percent said they have a game console and at least one another device that connects a television set with the internet.

"Gamers represent the youngest set of connected TV users," according to the YuMe study. "They do not usually have children or high incomes, but they often own game consoles and enjoy using them to play online games and music. They also tend to shop for consumer electronics, as well as clothing, apparel, and accessories."

Expected popularity of the new gaming system
Nintendo's Wii U is expected to retail at around $350. Despite its price point, experts said to AdAge that the device will likely sell well, appealing to Nintendo's 7 million enthusiastic fans in the country. Video game retailer GameStop is already offering credits for old smartphones and gaming systems that can go toward the purchase of a Wii U once it is available.

While some may consider the price point of Nintendo's new system to be too high for them, it still would be significantly less expensive than buying a new smart TV set. According to an IHS iSuppli report, smart television sets cost on average about $1,907 in June 2012.

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