Before discussing the development of home consoles, it's worth noting that with the rising popularity of 4K TVs, more people have started to pay attention to the relationship between gaming consoles and high-resolution displays. The question then arises: can game consoles help boost the adoption of 4K TVs?
Since the end of 2014, foreign console games became available in China, marking a significant step for the local gaming market. However, this moment seems to have come a bit late, as the online gaming world is already dominated by mobile, web, and VR games. In such an environment, the era of traditional consoles is not as dominant as it once was.
Even though televisions have evolved, the younger generation tends to prefer smaller screens, spending less time in the living room. As a result, home consoles remain in a passive position, struggling to gain traction among users.
Professional gamers know that hardware plays a key role in performance, but home consoles are generally less demanding when it comes to TV specifications. Most standard HD LCD TVs are sufficient for the majority of users. This means there’s little pressure to upgrade to 4K TVs. Additionally, most mainstream games currently run at 1080P, with stable 60 frames per second being considered excellent. While some 4K-optimized games exist, they often rely on patches rather than offering a true visual leap.
According to big data, in 2017, China's overall gaming revenue reached approximately RMB218.96 billion, up 23.1% year-on-year. Online games contributed significantly, reaching 151.32 billion yuan in the first three quarters. The expected annual revenue is around 201.1 billion yuan. Meanwhile, revenue from home consoles stood at about 3.88 billion yuan, growing by 15.1%. Game amusement machines generated 9.98 billion yuan in the first quarter, expected to reach 13.58 billion yuan for the year, up 24.7%. VR game revenue was 400 million yuan, increasing by 28.2%.
Unlike in Europe and the US, where console gaming is more common, most Chinese players still prefer computers and mobile games. Although domestic console games have seen growth in recent years, they remain a secondary market. Playing games on a living room TV is not as popular or convenient as on a PC or smartphone. This is one reason why 4K TV adoption hasn't been significantly boosted by gaming consoles alone.
Beyond gaming, 4K TVs also need other factors to become widely adopted. First, do 4K video sources exist and are they popular? Second, are 4K TVs affordable for the average consumer? Third, is the fiber internet speed fast enough to support 4K streaming? It seems that 4K TV adoption will not happen overnight—it may slowly grow over time without much fanfare.
Nintendo, one of the three major game companies, believes that the current market acceptance of 4K displays is not strong enough. They see it as not a promising investment opportunity.
In recent years, 4K TV and terminal technology have advanced rapidly. According to data from the China Electronics and Video Industry Association, by the end of this year, the 4K TV penetration rate in China is expected to reach 58%, and could rise to 71% within three years. However, despite hardware improvements, issues like 4K signal availability and network infrastructure are still under development. For 4K services to truly reach millions of homes, more progress is needed.
Achieving real 4K TV popularity requires more than just product upgrades. It needs a comprehensive and sustainable model across the entire 4K industry. The role of game consoles is becoming more important in the living room entertainment ecosystem. More gamers are showing interest in games, and many are choosing 4K TVs for an enhanced gaming experience.
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