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."
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.
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Is it that suprising? A video game can offer so much more than an hour and a half movie. Not only that but the "sequal factor" really starts piling up. Look ever single game up there has been a sequal.
This is one of those witty signatures that you'll remember.
What about UT2004. I'm sorry, that was a blockbuster game too, if anything is.
That's what I thought...
We have secretly replaced these Slashdot mods' sense of humor with a rusty nail. Let's see if they notice!!
Not enough... The game industry is bigger than Hollywood, if you only count US boxoffice receipts. But these "game industry is bigger than Hollywood" claims always leave out the rental and DVD sales market.
Dude, I think I can see my house from here.
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.
The coolest voice ever.
Now if only the industry could receive the recognition it deserves, the recognition the movie, TV and music industries receive.
There ought to be video game awards much better than those Spike recently gave out.
Somewhere, EA_Spouse is crying.
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?
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.
they want their headline back!
BTM
That was the turning point of my life--I went from negative zero to positive zero.
STOP TALKING!!! Don't give them anymore ideas! I have to pay close to 10 bucks to see s movie as it is!
I am full of goo... black evil goo
the MPAA and RIAA decide to sue game companies, citinglost revenue.
Doesn't it seem odd that an industry that would take more losses from piracy (i.e. a much higher percentage of users that already have the means and ability to pirate the products, and where the individual products are priced higher, providing further incentive for piracy) is making more money than the film industry, which should have a much larger customer base?
Or is it that the barrier-to-piracy on movies is a lot lower?
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
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?
I'm curious. In NHL 2005 do you just sit there and watch an empty ice surface?
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
Lots of people go to see movies they like multiple times. But how many people buy multiple copies of a game they like?
"There is more worth loving than we have strength to love." - Brian Jay Stanley
First figure out how many people would buy a movie at $50/unit. If that price reduces movie sales by more than 4/5ths then there's no need to talk. I think it would too.
Direct away from face when opening.
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.
Wow.
I remember the time when the size of the gaming industry hovered around $5-$6 billion, as recently as year 2000. Anyone have a monthly or yearly chart that would show when the jumps occured?
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!
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
...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
First figure out how many people would buy a movie at $50/unit.
G/PG movie, family of five, $7 per ticket plus monopoly popcorn/candy, do the math.
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.
Don't blame me; I'm never given mod points.
You are confusing the economic with the biological.
Biologically there is the new world (the americas) and the old world (eurasia and africa). Old world monkeys vs new world monkeys. Old world Bison vs new world Bison, and so on.
Then there is the economic terms
1st world: Modern Capitalism
2nd world: Modern Communism
3rd world: not developed enough to count as either.
Japan is very much 1st world. China is 2nd world. India is 3rd world (though could also be put in the 1st world bin). The terms are becoming antiquated with the fall of Russian Communism, and changes to world economics since the 1960/70's.
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.
Someone had to do it.
"Imagine how much the porn industry is worth...."
About $300+ per hour, it just depends on what you want them to do
it is only after a long journey that you know the strength of the horse.
- World Console Software + PC Software, worldwide, 2003: US$18.5 bn
-
Film industry revenues, worldwide, 2003: $180bn.
-
Music (audio & video) recordings, worldwide, 2003:
US$32 bn
Hollywood films alone account for about $63 billion.By comparison, IBM has revenues of about $80 billion per year.
What exactly is this "Hollywood" that Matthew Yi claims is smaller than the $10B "Game Industry" in TFA? Maybe it doesn't include the $14B US ($32B global) record industry: a business run out of LA, mostly, and NYC, even if it's 80% owned in Tokyo/Sony, Berlin/BMG and Paris/Vivendi-Universal. Is it just movies (not TV, either)? The actual scale of "filmed entertainment" revenue (not including music videos, part of the "recorded music" industry) was $75.3B globally, before the predicted 7.5% growth rate for 2004 (ie. $81B). Porn movies and website subscriptions alone have a global revenue of $8-10B. Maybe video games are bigger than Hollywood the same way that John Lennon was bigger than Jesus.
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make install -not war
Arg.
Ignore this post.
Moderating. Using pageup/pagedown to move. Didn't realize that this was also changing the settings from something positive (insightful/interesting/funny) to negative (overrated/etc.)
So, a post. This will, as I understand it, undo those moderations I have made. Oh, well. Better none than a false down. Hope this works.
Pick One: http://www-rohan.sdsu.edu/~stremler/sigs/sigs.html (Note - disable Javascript first!)
After twenty years of swearing never to play computer games because of the wasted time and frustration (when you lose, of course), I broke down and bought Hitman on sale for $10 at CompUSA.
And proceeded to waste hours and days of time, just like I knew I would.
And I never could figure out how to both kill the drug lord in Colombia AND blow up the drug lab.
So I trashed the game and went back to my old ways.
Meanwhile, I've seen Blade:Trinity twice and probably would see it a third time - except I'm broke for the next couple weeks.
Fuck computer games.
Richard Steven Hack - This sig is TOO GODDAMN SHORT TO DO ANYTHING USEFUL WITH! MORONS!
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
Thanks for the explanation, always a good idea to explain obscure references like "Halo".
With so much money changing hands in the game industry, why is it that the programmers who actually MAKE the games have to accept far-below-industry-standard pay and have to work in excess of 50 hours a week standard (more in crunch time, of course, which is most of the time)?
:|
Not that this is much different from the music industry, where most of the artists that actually produce the music wind up hopelessly in debt and without ownership of their own work.
Or the book authorship industry, where it is just understood that nobody can earn a living as an author, even if their books sell well nationwide.
Or the farming industry...where the concept of a "family farm" is a quaint oddity...and the majority of farmers are little more than slave labor...
I could go on...
There is a very, very disturbing trend that has been at work since the 1940's or so...with the demise of the small business, those who actually produce anything of value get paid just enough to live on (or less), while someone who contributes nothing to the process rakes it in.
This is NOT a free market.
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.
Actully, according to This Article the porn industry brings in between 4 and 10 billion. I heard on the news the other day a figure of 9 billion, which they said we more then the big 3 networks combined
Movies gross more than Games... always have, maybe always will. The stupid comparison made here is one that the game industry loves to make when trying to get mindshare... Compare movie box office versus game software/hardware sales.
If you include DVD/media sales of movies, movies win. If you don't include console hardware sales, movies win.
The movie industry (worldwide) grosses $180B. US movie industry grosses 63B. Box office only accounts for 26% of revenue.
reference: http://www.factbook.net/wbglobal_rev.htm
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.
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
Aw crap.
The MPAA announced today that because fewer and fewer people actually watch their shitty movies, they've decided to sue people for doing anything else.
Parent hit it on the head... the state of the industry from an outsider's point of view is significantly different to those working (or attempting to work) in the industry. The picture is painted that everything is rosy, and record sales are being made, but where on earth is all the money going? Everything seems to be sliding downhill at the moment, as it has been over the past three or four years, with development studios going under all the time. Even Microsoft have been laying off teams.