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Japanese Game Publishers Show Mixed Results
Thanks to GameScience for its round-up of financial results for Japanese videogame publishers for fiscal Q1 2004. The piece muses on "disappointing figures for Konami and Sega with a lack of big titles for the period, and with two cancelled titles, Namco also suffered heavy losses. Sony's game division also suffered, while Capcom and Square-Enix had a comparatively good period." The article also notes Nintendo's "large-scale gains", pointing out: "the Gameboy Advance SP continues to enjoy good sales while software such as 'Mario vs Donkey Kong', 'Kirby' and 'Famicom Mini Series 2' was a great success [both series together have sold over 2.7 million copies]", whereas "the bulk of the losses" in Sony's game division can "be attributed to lower hardware sales than usual", as the PlayStation 2 nears the end of its lifecycle.
Just looking at the tables for sega, they seem to be doing okay, especially in what's widely held as a downturn. They doubled earnings from a year ago, and their predictions call for 8 billion, somewhere between 4 and 8 times more than they're making now. Of course, predictions tend to be optimistic, but even if its only 4 billion, they've more than doubled earnings.
I'd be more worried about Sammy, who if I'm reading this chart correctly, earned 3 billion yen on 27 billion billion yen!
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i know this is going to sound a bit odd, but do you think sega would be doing better if they created another console? i love my dreamcast and know that there are so many people out there doing multiple things with it that sega would be sure to profit. also, even if they just release a few, couldn't they make money? kind of like a special edition console that can kill the big three limited to some small number that will cover costs and turn a profit. in a fantasy world, that would be the ultimate.
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1. PS2 - Madden NFL 2004 (Electronics Arts)
2. GBA - Pokemon Ruby (Nintendo)
3. GBA - Pokemon Sapphire (Nintendo)
4. PS2 - Need for Speed Underground (Electronics Arts)
5. NGC - The Legend of Zelda: The Wind Waker (Nintendo)
6. PS2 - Grand Theft Auto: Vice City (Rockstar)
7. NGC - Mario Kart: Double Dash!! (Nintendo)
8. PS2 - Tony Hawk's Underground (Activision)
9. PS2 - Enter the Matrix (Atari)
10.PS2 - Medal of Honor: Rising Sun (Electronics Arts)
These are sales figures from North America. Looking at that list, the only game there that was not an established game franchise is the Matrix game - and that was already an established movie franchise. Simply put, companies that want to make money need to exploit their established characters. The video game industry is still relatively young and perhaps after more maturing, originality will sell games. For now, companies should bet on sequels selling. The link I provided provides a list of the best selling games in Japan for 2003, which paints a similar picture.
Now, I will agree that companies should not "pump out" sequels. Companies need to realize that in this industry, established characters are a license to print money, IF you protect your characters and make sure that poor release after poor release does not devalue them. For instance, the most recent Tomb Raider game was a sequel that did not sell because it was a bad game with an established character. Companies need to use established characters but also release quality games.
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These are sales figures from North America. Looking at that list, the only game there that was not an established game franchise is the Matrix game - and that was already an established movie franchise. Simply put, companies that want to make money need to exploit their established characters. The video game industry is still relatively young and perhaps after more maturing, originality will sell games. For now, companies should bet on sequels selling.
Going through the list, only 3 of the titles (Need for Speed, Madden, and GTA) outsold the previous title in the series, though, so companies should beware of the diminishing returns of sequels. In many cases (especially the Nintendo titles), the ratio of sales was nearly 5 to 1.
I would attribute the difference in Madden, NfSU, and GTA as having to do with:
-Madden's competition getting worse
-NfSU actually being a better game than previous titles in the series, in addition to having more popular appeal
-GTA:VC riding off the controversy and popularity of GTA3, having come out perhaps at the height of GTA3's rising sales, and perhaps having stolen some sales from GTA3 in the process (not to mention people's confusion over the fact that Vice City and San Andreas are more expansions rather than true sequels to GTA3).
-PainKilleR-[CE]
I know if an RPG takes up 200hrs. The last thing I am going to do is squeeze in 2 RPGs and cram in 400hrs. Games nowadays, while not the most innovative, are deep as hell. You spend all your time unlocking this and that.
Which also brings up another point.... why do I want to buy all these games just to unlock stuff day after day. Where's that FUN FACTOR.
PC gamers are waiting with hands on all their moolah to purchase all the gold that comes out when HL2, Halo2, Stalker, etc are released. This might actually put the buyers of other consoles at confusion, since they might find they should also stay back for some time. Also, as handhelds are putting in more of gaming, people are choosing mainly between a mobile, a PS2, or PC.
If Nintendo is smart they will continue the line of games like the excellent "Mario vs Donkey Kong". The original game boy had a lifespan of 8-10 years. The Advance series is getting cut off in 4-5 good years for the DS. The DS is gimmicky and the graphics upgrade isn't work purchasing for the use of a stylus.
Nintendo feels it needs to go after an adult market like the PSP. What they need to do is develop more adult oriented games like Advance Wars and people will still buy a SP. As an adult I like traveling with the SP because it's small, cheap, and the cartridges are tougher than nails. I won't be able to throw one of those PSP disks in my pocket without it breaking. I can't even keep track of my Palm Pilot stylus. How are 8 years not going to lose the stylus?
What I find interesting about this list is that there is only one ps2 exclusive game on there. People would be better off buying a gamecube. That way they can play 7 out of the top 10, and many of those games would have better graphics.
You mean GTA? That's not even exclusive any more.
When you say that Madden's competition is getting worse...are you referring to games like NFL 2K5?
Gamerankings.com scores NFL 2K5 at 91.7 (got an 89 last year) and Madden at 93.4. Take out Gamespy's skewing of the scores, and they would be dead even.
On the other hand, there are FEWER games competing- but they are not getting worse. This year there is no FEVER, and some other game I can't remember. But, there is NFL Street, also from EA, but a different game.
No reason to lie.
All those you listed are sequels, and people wonder why sales in video games are 'lacking' or becoming less.
When you say that Madden's competition is getting worse...are you referring to games like NFL 2K5?
No, I would be referring to the 2004 editions of all of the games, since Madden 2005 was just released. Incidentally, in 2003 Madden, Sega's title, and Microsoft's title were given equal scores by a large number of reviewers. In 2004, though, Madden scored significantly better than either. This year, Sega's title has apparently gotten significantly better, but Sony and Microsoft have dropped out completely to improve their titles for next year.
As for NFL Street, you're looking at a completely different type of gameplay; although it still appeals to a section of Madden's audience, it's not all of Madden's audience, and it will appeal to some outside of Madden's audience, as well (just as the Blitz series did at one time).
-PainKilleR-[CE]