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Game Industry Bigger Than Hollywood

Ant writes "This SF Gate story says stacks of new releases for hungry video game enthusiasts mean it's boom time for an industry now even bigger than Hollywood. The $10 billion video game industry, which generates more revenue than Hollywood, has never released so many highly anticipated blockbuster titles in a single season. It started in August with the game title Doom 3, followed by The Sims 2 in September, Grand Theft Auto: San Andreas in October, then Halo 2, Metroid Prime 2: Echoes and Half-Life 2 last month. In November, sales of video games rose to $849 million, an 11 percent increase from the same month last year and up 77 percent from October, according to the industry research firm NPD Funworld. The industry set a milestone last month when Microsoft's Halo 2 -- a sequel to a futuristic game with an elaborate plot that pits humans against invading aliens -- surpassed Hollywood's opening-weekend movie box office record in just one day of sales."

43 of 503 comments (clear)

  1. Apples and Oranges by Anonymous Coward · · Score: 3, Insightful

    People don't buy movie tickets months in advance for an opening weekend, so that's really not a fair comparison. This also doesn't take into account Hollywood's DVD sales which are quite impressive.

    1. Re:Apples and Oranges by emjoi_gently · · Score: 2, Insightful
      People don't buy movie tickets months in advance for an opening weekend
      "Normal" people don't buy the video games that way either.
      However the more Fanatical bought tickets weeks ahead for movies like Lord of the Rings, The Matrix, and the Star Wars Prequels.
    2. Re:Apples and Oranges by mordors9 · · Score: 1, Insightful

      Not to mention the fact that the games are $50 and movies are $8 in my area. So there are still 6 times as many people going to the movie versus buying the video game.

    3. Re:Apples and Oranges by loid_void · · Score: 2, Insightful

      I think if we threw in the fact that so many movies are looking like video games then the comparison might be apples to apples and the scales would most definitely tip in favor of the gaming industry. Hollywood is chasing the gaming industry, it sees the numbers; Matrix looked like a game, and how many movies spin off games and the games sell more than the movie?

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    4. Re:Apples and Oranges by Zaphod_Beebleburp · · Score: 2, Insightful

      Since the article doesn't say, are we to assume that this includes DVD sales, rentals, and box office income? I think Hollywood makes more than that but then again I could be wrong. Of course, declared income and actual income are two entirely different things.

    5. Re:Apples and Oranges by sam_handelman · · Score: 2, Insightful

      Only 20% of the population goes to the movies EACH MONTH. Movie viewing is much more evenly distributed among the population generally - with many people going to the movies 1/year.

      Relatively few people buy one video game a year, on the other hand. The average among people who buy any at all is probably somwhere north of 3.

      So the portion of the population that goes to movies - ever - is more than 3 times as great as the portion of the population that buys a video-game - ever.

      Think about your own sphere of acquantances - how many people do you know who've never gone to see a movie? Even the Amish neighbors of the family farm in the midwest had gone to see a movie at least once in their lives, for christ's sake.

      On the other hand, many of the people I know have never bought a video-game for themselves, but my little brother owns dozens and (counting the ones I bought when I was a kid) so do I; and the people I know are far more likely to be gamers than the general population.

      --
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  2. Bleh by Lord_Dweomer · · Score: 4, Insightful
    I know I speak for many here when I say that while I'm glad that the creators of my favorite games are making money, I'm dying inside when I think of what this ultimately means for the future of the games industry.

    --
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    1. Re:Bleh by Lisandro · · Score: 5, Insightful

      Mod parent up, please.

      The problem is that when a new entertainment market starts creating serious money it becomes bastardized. Happened to music, happened to TV, happened to movies and rest assured, it will happen to games.

      Hell, you could argue that it has already happened. A sign? All of the games in the list are sequels; which almost guarantees a base of sales. Some of them are good, some of them aren't, but there's hardly anything new or fresh offered in games nowadays; since seen genres with newer graphics are easy to sell we still see FPS, MMORPGs, GTA (which WAS fun, but i don't want to play the same game for the third time), sport simulations and so. Publishers simply go for the quick buck. I died a bit when Lucasarts canned the sequels for Sam & Max and Full Throttle to concentrate on Star Wars licences.

      The only innovative thing i've seen from a major games publisher was Nintendo with it's DS; i haven't tried one yet but it looks good on paper and the touch screen and onboard WiFi are potentially great gaming aids. That could be a gateway to some interesting games, which knowing Nintendo, won't be too far away.

    2. Re:Bleh by MilenCent · · Score: 3, Insightful

      Hell, you could argue that it has already happened. A sign? All of the games in the list are sequels; which almost guarantees a base of sales. Some of them are good, some of them aren't, but there's hardly anything new or fresh offered in games nowadays; since seen genres with newer graphics are easy to sell we still see FPS, MMORPGs, GTA (which WAS fun, but i don't want to play the same game for the third time), sport simulations and so. Publishers simply go for the quick buck.

      Well some of us have been saying this for years. If the game industry were, overall, as creative as they were back in the golden age, you can be there'd be a lot fewer Nintendo fanatics, myself included, these days.

      But even my admiration for Nintendo has limits. Do you know what the most original company ever to produce video games was? The (in my opinion) answer may not be what you expect.

      It was Atari Games, an entity that, in my mind, encompasses their early arcade output pre-split-up, and their later, post-split arcade games. So many of their hits were created out of whole braincloth, because there was absolutely nothing like them before. Atari was the most original not just because they were first, but because even as late as the early 90s they were still making incredibly different, fun games. Midway Arcade Treasures (1) has a good handful of them, including Rampart, which I've already bored far too many people discussing, some of them here.

      But we can all see where that got them. They made Toobin', KLAX, Gauntlet, Marble Madness and (whimper!) Rampart, but gamers, more and more, became drawn to things like Street Fighter 2, a game that was admittedly well-designed, but inspired way, way too many sequels and knock-offs. It's not like Nintendo's sequels, where they'll throw out all but the core concepts and design a new game around them (example: Yoshi's Island is a direct sequel to Super Mario World!), but more like the same game, with new characters and modestly different rules.

      Fighting games, depending on who you ask, are what saved or ruined arcades. My money's on "ruined." This is something of a digression, but it's worth noting that the fighting game boom was one of the contributing factors to the atmosphere of genrefication that are both what's enabled video and computer gaming to become big business, and what's sapped so much of the creativity out of the field.

    3. Re:Bleh by Cryp2Nite · · Score: 2, Insightful
      Please pick one side of the argument, you're making my head spin.

      The problem is that when a new entertainment market starts creating serious money it becomes bastardized.

      <snip>

      All of the games in the list are sequels; which almost guarantees a base of sales. Some of them are good, some of them aren't, but there's hardly anything new or fresh offered in games nowadays...

      <snip>

      I died a bit when Lucasarts canned the sequels for Sam & Max and Full Throttle...
    4. Re:Bleh by Lightwarrior · · Score: 3, Insightful

      > I exaggerated a bit...

      A bit? I hate to break it to you, but there was *nothing* groundbreaking about FarCry. It was your standard Soldier of Fortune 2-esque FPS knockoff. The story was your typical "nazi scientist" drivel, the main character was, again, your typical no-nonsense hardcore spec-ops/government agent, the weapons were exceedingly average and typical, and finally, the much lauded AI was seriously wanting.

      I played the game without reading the hype. I didn't experience anything special from the AI, so I started it up again on ultraextrahard (or whatever), and wandered around for a bit. As expected, the "tactic" of sniping one guy off and then gunning down his buddies worked flawlessly. Hell, after shooting one guy right next to a friend of his, his friend crept cautiously forward - no diving for cover, no wigging out and running, no going for reinforcements.

      From my experiences, FarCry gets the award for "Most Overrated Game" this year. Sure, it was a decent FPS... but that was it. Doom 3, for all its linearity, at least had *suspense*.

      And, simply put, you're either blind or running these games on a machine that an Xbox would put to shame. FarCry has "stunning" graphics while Half-Life 2's are "ordinary"? I'd suggest a trip to the optometrist or psychiatrist.

      -lw

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  3. All sequels by RedWizzard · · Score: 4, Insightful
    It started in August with the game title Doom 3, followed by The Sims 2 in September, Grand Theft Auto: San Andreas in October, then Halo 2, Metroid Prime 2: Echoes and Half-Life 2 last month.
    Every one of these "blockbuster" titles are sequels. Is anyone doing anything new and exciting?
    1. Re:All sequels by thenextpresident · · Score: 4, Insightful

      Yes. Releasing sequels that are actually as good, or better, than the originals.

      Something Hollywood finds next to impossible.

      --
      Jason Lotito
    2. Re:All sequels by Lord_Slepnir · · Score: 1, Insightful

      World of Warcraft. Sure, you might think of it as just another MMORPG, but already I can see that it's far and away better than any other that I've played (DAoC, FFXI, and AC II ). Blizzard went after a lot of the 'great annoyances' that were present in other MMORPGs, and fixed them.

    3. Re:All sequels by hunterx11 · · Score: 2, Insightful

      While it's true there's too much sequelism, it's different for video games than it is for films. Doom 3, for example, isn't even a sequel--it's a remake--but even if you hate it, you can't say it's just a rehash of the original Doom in terms of gameplay. I think a lot of it is just people wanting to cash in on established names. Hell, Super Mario Bros. 2 was an existing game they rebranded.

      --
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    4. Re:All sequels by Khuffie · · Score: 4, Insightful
      What's wrong with sequels? There's a difference between sequels churned out every year (ala EA), and sequels that really added some new cool things. Doom 2 was released years ago. So was the original Half-Life. Halo 2's been in the making for over 2 years. The original Sims been out for a while. The only games in that list that didn't fundementally change the gameplay were GTA:SA and MP2. In fact, all of those games, sequels or not, were in fact friggin' good games.

      There's a difference between good sequels, and shoddy sequels which were just designed as quick cash machines. The Splinter Cell series and the latest Prince of Persia game are both guilty as charged, and basically any EA sports game.

    5. Re:All sequels by fafaforza · · Score: 2, Insightful

      Ditto. I just saw Ocean's 12. What a God-aweful movie.

    6. Re:All sequels by timster · · Score: 3, Insightful

      I'm tired of people saying this, because there is a fundamental difference between a movie sequel and a video game "sequel".

      The thing with a movie is that the experience is always the same. You sit, and the movie goes for a while. Innovation in movies has to come in the form of new plot ideas and new characters and so forth. So sequels in movies are not usually very much appreciated because in many ways we have seen the movie already.

      Video games provide a much more diverse range of experiences. "The Sims 2", for instance, will not be "The Sims" again. It could in many ways be a completely different game, and you can bet there will be new things for a player to learn. They could call it something completely different -- the fact that they re-use a well-known brand doesn't mean that they are making the same game again. There's no new plot or characters simply because there wasn't any plot or characters in the first place.

      If you want an example of a Hollywood-style sequel in the video game world, consider the ".hack" series. All four games are basically the same, it's just a somewhat long game that is really expensive.

      --
      I have seen the future, and it is inconvenient.
  4. Ahem... by googleaseerch · · Score: 5, Insightful

    What about UT2004. I'm sorry, that was a blockbuster game too, if anything is.

  5. Oooh, so piracy DOESN'T hurt sales.. by DroopyStonx · · Score: 4, Insightful

    That's what I thought...

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    1. Re:Oooh, so piracy DOESN'T hurt sales.. by DroopyStonx · · Score: 2, Insightful

      You're responsible with it, at least.

      I can't say the same for myself and a few others I know. I downloaded Doom 3 and GTA, but haven't actually purchased them yet. I will, I just haven't.

      I think the only game I purchased from these blockbusters was Metroid Prime 2.

      I'm not gonna try to justify it. I knew it was wrong, I did it anyway, but it's interesting to point out that GTA, Halo 2, Doom 3, and HL2 were ALL heavily pirated and available weeks ahead of time. Thousands upon thousands of people downloaded and played them.

      The question is, how many purchased, how many didn't? Even still, they performed quite well and no one's losing sleep for their lack of performance.

      Just goes to show how people can make a mountain out of a mole hill when it comes to piracy. They make it seem like much more than it really is.. "If you download this game, how can I put braces on my kid's teeth?"

      "Uh hm... well, considering your ONE game sold more than the best movie of all time, I think you'll do just fine with those braces."

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  6. A new form of entertainment taking over by Faust7 · · Score: 4, Insightful

    The rich, detailed, immersive settings for what used to be entirely passive entertainment can now, with the current technology, be used for interactive entertainment.

    All those wonderful spy-drama, fantasy, and sci-fi worlds that used to be the exclusive domain of movies? Now their realism is being delivered to you in a way that you can actually be in - if you're open to the experience.

  7. Recurring revenue, too... by arashiakari · · Score: 5, Insightful

    MMORPG games such as World of Warcraft get a hit of cash up front and then involve monthly revenue. Hollywood has nothing like that.

    Most games cost between $30 and $50, no-matter what platform you're buying for. How much is a movie ticket? $8 to $10 for tickets or $20 to $30 for DVDs. How much do games cost to make vs. the revenue they bring in?

  8. Re:Contrinutions by caspper69 · · Score: 5, Insightful

    Very true, and I was thinking the same thing when I read the blurb. Further, they don't include sales of DVD players themselves either, whereas the games industry most certainly includes the hardware sales dollars from dedicated consoles. Then you can also talk about international distribution and other market's native films, etc., etc.. Hollywood (and television in general) still makes many, many times what the videogame industry does.

  9. Re:Gaming Industry Rise by Anonymous Coward · · Score: 1, Insightful

    So can books.......

  10. Not so fast, geekboys by DNS-and-BIND · · Score: 1, Insightful

    A movie is $10/unit. A video game is $50/unit. Let's divide your numbers by five and then talk.

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    1. Re:Not so fast, geekboys by civman2 · · Score: 3, Insightful

      A family of five goes to see Spider-Man 2. A family of five buys Spider-Man 2 for the [insert favorite platform here] Where is that division again?

    2. Re:Not so fast, geekboys by Anonymous Coward · · Score: 2, Insightful

      A movie is $10/unit

      Which is about $5/hour...

      A video game is $50/unit

      Which could be as little as $1/hour.

      I don't have a point either.

  11. Not quite by Smerity · · Score: 5, Insightful
    As I heard at the AEAF (Australian Effects and Animation Festival), games sales may be higher, but the rights for Hollywood are much more flexible, for example.

    Mainly, Hollywood can release a movie, get box office, sell the DVD, license the movie to networks, and sell other rights (for a TV show based on it, sequels), while a game sells and if it doesn't sell well, it's dead in the water

  12. Book Industry: $23.4 Billion in 2003 by meehawl · · Score: 5, Insightful

    The Book Industry garnered $23.4 billion in 2003 - and that was a flat recession year. When video games pass books in dollar volume, then we will know the end of civilisation is at hand.

    --

    Da Blog
    1. Re:Book Industry: $23.4 Billion in 2003 by CaptainPinko · · Score: 4, Insightful

      it already has come. how much of those book sales were educated or artistically signifant? I bet the majority of them were pulp. In the words of Harvey Danger "The cretins are cloning breeding"... and apparently they are addicted to twitch-style video games.

      --
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    2. Re:Book Industry: $23.4 Billion in 2003 by pHatidic · · Score: 2, Insightful

      How many of these games are educated or artistically significant? The best game on the market is still nethack and it's been out for 20 years already.

  13. EAbrace, EAtend, EAxtinguish by ObsessiveMathsFreak · · Score: 2, Insightful

    This industry is ours. It's profits and technology will become one with our own. It's programmers will be hired and worked into mindless drones. Resistance is Futile. Surrender you IP and prepare to be bought out. Resistance is futile. People will buy our crappy games as long as we continue to pay retailers to promote them. Lower your morals and prepare to watch us take all of the billions that could have been yours. The comglomerate will prevail. Challenge Everything(TM), except our margins.

    --
    May the Maths Be with you!
  14. Time well spent by ObscureKaffine · · Score: 2, Insightful

    I honestly don't mind spending the money on a game that i can play for sometimes nearly 100 hours or more... (i'm an RPG fanatic) It sure beats paying 10 bucks for a movie that chances are sucks... most hollywood movies these days are putting so much money into FX and advertising, that they are forgetting the fundementals... (story, acting... etc...), something that the video game industry is deffinately kicking hollywood's butt at.... so i don't mind giving them the cash for a far superior form of entertainment

  15. Re:Gaming Industry Rise by gad_zuki! · · Score: 2, Insightful

    Its really about interaction isnt it? Movies are passive, the theater experience is mixed at best, etc. While I was playing Doom3 and Half Life 2 I would seldomly tell myself "Wow, this is pretty cinematic, its like a movie I'm controlling."

    People like two way media. Look at us, we're posting on a big geeky weblog. Why? That's the question Hollywood can't address with its movies, celebrity star system, over-used CGI, and "safe/non-controversial" movies. I'm sure Joe and Jane Sixpack don't really care, but as people divest from Hollywood, the more Hollywood will cater strictly to the LCD. Arguably, they've reached that point long ago.

    I see maybe three or four movies a year now. Hollywood can have me and my money, but they need to release some better content. Something original or something that challenges me. They need to step up to the persistant angry religious letter writers. They need to fix the theaters so if a movie claims to start at 8, it will start at 8, not 8:22. 15 minutes of trailers (which should be coming after the movie before the credits as far as I'm concered) and 8 minutes of commercials/trivia is a good way to lose my 9 dollars.

  16. That's because... by RiffRafff · · Score: 2, Insightful

    ...game companies don't sue their customers.

    I would much rather give a game for Christmas than a CD or DVD, knowing that my money is not helping to finance corporate lawsuits against thirteen year-old girls living with her single mom in HUD housing.

    --
    "I might have made a tactical error in not going to a physician for 20 years." -- Warren Zevon
  17. Re:I still have games that I have not played... by geoffspear · · Score: 2, Insightful

    As a team owner in a video game, you get to do things that way you wish the idiot owners in the real world would do them. In most sports games, this involves not making or not making the trades that your favorite team made. Maybe in NHL 2005 it involves getting together with the other owners to fire the stupid commissioner and replace him with someone who knows more about hockey than basketball.

    --
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  18. Re:Gaming Industry Rise by Anonymous Coward · · Score: 1, Insightful

    If you can buy a $500 video card, a $50 game is nothing.

  19. Well, I think there's a cap to this market. by skids · · Score: 2, Insightful


    I know I personally will not be needing to buy any more games for about a year, now that I have San Adreas. :-)

    The better the games get, the less the appeal for the newer games. Movies wear out much faster.

  20. Day-of sales or preorders? It's a mess. . . by Nomihn0 · · Score: 2, Insightful

    For the comparison to be equitable, day-of videogame sales must exclude preorders. That, or the sales and rental markets should be included for both media.

    The rental market for PC games is difficult to gauge. Almost nowhere are computer games rented. Instead, cybercafes rent access to machines on which the games are all full-installed with site licenses (to avoid piracy). To accurately measure the secondary market value of PC games, one must include the cost of using a cybercafe with deductions for the operating cost of the facility. Good luck finding concrete data on this.

  21. Re:poor programmers by Anonymous Coward · · Score: 4, Insightful
    The poor programmers could always band together and form their own gaming company.

    Sure, and a few engineers can always start their own car company. I wish them luck against the entrenched power of Detroit.

    The original poster's point is that we are living in a second Gilded Age, a second age of robber barons. This age will end eventually, but the serfs will have to suffer a bit more before they start rebelling.

  22. When you think about it though by phorm · · Score: 2, Insightful

    The lines between the media themselves are blurring. Games become like books with complex interweaving stories, and like movies in terms of realistic graphics or cinematics. Movies became more like games with the popularity of 3d... much of the techniques for 3d rendering can be applies between both - and in the future graphic cards may be able to render realtime that which is currently rendered by farms. MMORPG's can add on content like your weekly episodes or even - blah - sometimes like an online soap opera.

    Seriously, I predict that smart companies in the future will merge the mediums (and hopefully produce some decent product). Think games with believeable characters, cinematic cutscenes/play, studio recorded music and more.

    Inevitably ending in a wave of shit of course, but there are bound to be some real gems that shine through it all.

  23. So where is the research, and the mature games? by LarsWestergren · · Score: 2, Insightful

    Even if the headline is wrong (as many claim), with the influence gaming have on society today why aren't there more people in academia researching this?

    Why aren't there more university courses teaching it?

    One reason why games isn't accepted by the mainstream as culture or art is of course the immaturity of the industry. And I don't mean it hasn't existed long, I am talking about the age of the developers and the attitude of the industry. Again and again polls show that the averge gamer is in fact somewhere between 25 and 30 years old, and there are are a lot more female gamers than people think. However, average age of the people working in the gaming industry is actually much lower (I know several), and the games created and the ways they are sold seem to mostly cater to the segment "early teenage American male".

    And in this segment, violence sells, nude women sells. One of the few things I dislike about Planescape:Torment for instance is the rampant "big tit-itis" in the artwork.

    So anyway, I would like to see more mature games, and not mature as "full of sex". The number one thing for me when buying a game is a well thought out plot with interesting characters. Then it doesn't matter if it is a shooter (Half-Life, Thief3, Deus Ex) or a role-playing game (anything from Bioware/Black Isle basically). These games are no nobel prize winners in literature of course, but still good enough for me.

    I want more good writers in the gaming industry, and less graphics engine geeks. More Warren Specter, Greg Zeschuk, Ray Muzyka, less John Carmack.

    --

    Being bitter is drinking poison and hoping someone else will die