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Game Software Sales Reach $7.3B in 2004

Posted by Zonk on from the that-is-quite-a-few-copies-of-tetris dept.

A press release from the Entertainment Software Association reveals the growing popularity of the gaming industry, as sales reach into the 7 Billion US Dollars arena. From the article: "In 2004, video games flew off the shelves as eight titles were sold per second per day throughout the year, evidence of the continuing vast popularity of games among consumers of all ages. This industry remains strong and poised for renewed double digit growth over the next five years as we enter a new cycle of video game console launches. The future could not be brighter."

45 comments

  1. This just in! by Squatchman · · Score: 1, Funny

    World Obesity rates climb to new highs !

    1. Re:This just in! by Grant29 · · Score: 1

      Maybe we can get some more popular games such as DDR to help give some people some exercise.

  2. Just as long as... by Tepshen · · Score: 4, Insightful

    .. We dont have another great video game crash due to crappy games flooding the market trying to get a piece of the pie. I enjoy games but I dont think that mainstream profit mongering is good for gamers as a whole.

    1. Re:Just as long as... by Mitaphane · · Score: 3, Insightful

      I seriously doubt there will ever be another crash again. The market is too large and well established now. When the crash of '83 or '84(I forget when it was) happened the game industry was still trying to define itself. It was still trying to decide if it was a part of the toy industry or the consumer electronics industry. 2 decades later, video games are as well established as an entertainment medium just as much as movies and games. Unfortunately it has meant the number of mediocre titles has risen, but it also means the number of chances for truly great titles will appear too.

      --
      -Shawn "If the Name Don't Rhyme It Ain't Mine" Conn
    2. Re:Just as long as... by Anonymous Coward · · Score: 0

      >.. We dont have another great video game crash due to crappy
      >games flooding the market trying to get a piece of the pie. I
      >enjoy games but I dont think that mainstream profit
      >mongering is good for gamers as a whole.

      My thoughts exactly on crappy wintel boxen and the computer industry as a whole.

    3. Re:Just as long as... by Ayaress · · Score: 2, Insightful

      The market has a bit of a safety net against crashes now. Back in the 80's when the first crash hit, not that many people bought games, and due to hardware limitation, gameplay and fun were really the only reason to buy most games. It certainly wasn't for the beautiful graphics. Now, games regularly try (and succeed) to sell themselves purely on graphics, sometimes with nothing else going for them, so even a major dip in quality still yeilds games that sell.

      Most importantly, though, a lot more people buy games than ever before. Losing 100 thousand customers when you have a million is deadly, but losing ten million when you have 100 million may mean a lot more dollars lost, but you've still got 90 million customers. The way the industry is now, it can afford to lose customers. That would be bad for gamers, and in the long run it may end up severely hurting the industry, if it happens the people in charge will be off sipping rum in Tahitti by the time we figure out what hit us.

    4. Re:Just as long as... by Datamonstar · · Score: 1
      That would be bad for true gamers, and in the long run it may end up severely hurting the industry...
      There... fixed it for you (empahsis mine).
      --
      The eternal struggle of good vs. evil begins within one's self.
    5. Re:Just as long as... by Ayaress · · Score: 1

      Good point.

    6. Re:Just as long as... by JFMulder · · Score: 1

      You weren't around in 1929 were you? I wasn't either :p, but my point is something called the WHOLE DAMN ECONOMY came crashing down back then. And I'm pretty sure we could say that is was at that time already pretty large and well established.

      Don't you think that the music industry is slowly getting into a crisis? People buying less and less because of quality concerns and ease of piracy. That market is well established too and is pretty large.

      We'll wait and see what happens with that one.

    7. Re:Just as long as... by johannesg · · Score: 1

      That's what they said about the IT sector... just before the bubble crashed.

    8. Re:Just as long as... by jbolden · · Score: 1

      In the 1970's the movie industry had a large fall off in business. Interestingly it led to lots of experimentation which created a larger and healthier industry but certainly the video gaming industry isn't more established than Hollywood was 32 years ago (and yes I know that that games outsell movies if you only count certain aspects of the movie industry).

  3. The future could not be brighter, eh? by Anonymous Coward · · Score: 5, Insightful

    Exclusivity contracts, workers being laid off, smaller developers going under or being bought out, Japan's game industry shrinking, prices on games going up next generation, innovation compromised in favor of a constant stream of sequels, and mediocre games all abound...

    Sounds like a bright future...

    1. Re:The future could not be brighter, eh? by Anonymous Coward · · Score: 1, Insightful

      The future of video games looks like the past of Hollywood. Try to imagine what kind of people (on both the "creative" side and the "consuming" side) see that as a bright future, and then try to remember what made you a fan of playing video games in the first place.

      The ones that see no problem are part of the problem.

    2. Re:The future could not be brighter, eh? by superpulpsicle · · Score: 1

      Damn this summed up about everything negative in the industry. You could have gotten +99 very Insightful if you didn't post as Anonymous Coward.

    3. Re:The future could not be brighter, eh? by Anonymous Coward · · Score: 0

      Logging in is overrated. So are karma and upward moderation.

    4. Re:The future could not be brighter, eh? by euxneks · · Score: 1

      It's good to know there are still optimists out there.

      --
      in girum imus nocte et consumimur igni
  4. Why are game companies bitching? by XopherMV · · Score: 3, Interesting

    In 2004, video games flew off the shelves as eight titles were sold per second per day throughout the year, evidence of the continuing vast popularity of games among consumers of all ages. This industry remains strong and poised for renewed double digit growth over the next five years as we enter a new cycle of video game console launches. The future could not be brighter.

    If that is true, which I am not disputing, then why are game companies always bitching about not making enough money?

    1. Re:Why are game companies bitching? by Brainboy · · Score: 1

      Game developers are complaining about not making enough money. Publishers are quite satified. Especially if the publisher is named 'EA'

      --
      Just a guy with an opinion
    2. Re:Why are game companies bitching? by Anonymous Coward · · Score: 0

      hmmmm. Could it be that they are... COMPANIES!

      Name one for-profit company that has ever bitched about making too much money.

    3. Re:Why are game companies bitching? by Adrilla · · Score: 1

      Cause it worked for the RIAA?

      --

      "Plans are for fools! Oglethorpe, the plutonian (Aqua Teen Hunger Force)
    4. Re:Why are game companies bitching? by garibald · · Score: 2, Insightful
      Well I would imagine that they complain because the majority of games that are put onto the shelves do not break even.

      In fact, the article states that the sales of games has reached 7 billion, not the profit made from those games. The cost of making a modern game is in the tens of millions now, and each runaway hit has to support about 10 lackluster releases. Besides the fact that a good portion of the money goes to the publisher who provides the marketing, advertising, and distribution of the game instead of to the studio who creates the code and content.

      This last year it appears that the market has expanded to having more than the usual 10% of the games released taking the lion share of the sales, although who knows if that will repeat itself. This last quarter we had how many major titles being released in only a small number of weeks.

  5. and so by Zareste · · Score: 4, Funny

    You see what file sharing is doing to the market?! We cannot stand for this!

    --
    I am NOT a number! I am a - oh wait, I'm number 761710. Look! 761710!
    1. Re:and so by DreadPiratePizz · · Score: 1

      The vast majority of those games sold were CONSOLE games. Console games cannot be as easily backed up or coppied as a PC game. These numbers tell you NOTHING about what file sharring does to PC games, where it hits the hardest.

    2. Re:and so by dauthur · · Score: 0

      If we cannot stand for this, then we must sit for it. Har.

    3. Re:and so by Pluvius · · Score: 1

      These numbers tell you NOTHING about what file sharring does to PC games, where it hits the hardest.

      "According to the data compiled by the NPD Group, overall U.S. video game console software sales reached $5.2 billion (160.7 million units), computer games sales were $1.1 billion (45 million units), and a record $1.0 billion (42.3 million units) in portable software sales. ... By way of comparison, 2003 figures were: U.S. video game console sales reached $4.9 billion (149 million units), computer games sales were $1.2 billion (52.7 million units), and portable software sales were $903 million (37.4 million units)."

      It's still true that the numbers don't tell you what file sharing does to PC games, but only in the sense that you can't tell what profit decreases come from piracy and what comes from other things, such as the traditionally overwhelming popularity of console gaming. Anyway, the decrease in sales from last year to now could easily be caused by fluctuations in the market completely unrelated to piracy. Also, the console and portable markets have grown dramatically in the past year despite the increasing popularity of that type of piracy.

      (Irrelevant pet peeve: People calling console games "video games" even though that term covers all forms of gaming involving direct interaction with a virtual visual component, including those of consoles, PCs, and portables. That quote up there doesn't exactly do it, but the term "computer and video games" is used a lot in that article.)

      Rob

    4. Re:and so by Zareste · · Score: 1

      where it hits the hardest

      Like BAM! You just got nailed by a feather pillow.

      --
      I am NOT a number! I am a - oh wait, I'm number 761710. Look! 761710!
    5. Re:and so by cluke · · Score: 1

      I interpret 'video games' to be those you play through your TV, therefore console games. (Unless you play your PC through a TV out, that messes up the system somewhat)

  6. This makes me wonder... by hal2814 · · Score: 1

    $7 billion being spent on games nowadays but adventure games and some other long-forgotten genres are still all but extinct? With all this money being spent on gaming, it seems like a development house about the size Sierra was in its heyday could still carve out a respectable (but not glamorous) living.

    1. Re:This makes me wonder... by bigman2003 · · Score: 0

      Show me 7 people who like old-style adventure games....

      And I'll show you 7 people who won't buy any new games, because "the old ones were better."

      So yes, those genres are just about extinct. People won't buy them, so they don't make them.

      --
      No reason to lie.
    2. Re:This makes me wonder... by ElleyKitten · · Score: 1

      I like old-style adventure games! And I still buy new games. Who else does? I can't be the only one.

      --
      "What is Internet Explorer 7? Are you saying we can't access the normal internet?" - I love tech support. Really.
  7. How many? by Graywolf · · Score: 0

    ... eight titles were sold per second per day throughout the year...

    8 titles per second MORE each day?
    At that acceleration rate, they'll run out of titles way before Xmas...

  8. I don't understand by CMiYC · · Score: 1

    eight titles were sold per second per day throughout the year

    What other unit of measure would there but "per day"?

    1. Re:I don't understand by Ryan+Stortz · · Score: 2, Interesting

      The way they wrote it it makes me think it's increasing. Acceleration is measured in distance/timeunit/timeunit.

      --
      Bugs are just features that have been fixed.
    2. Re:I don't understand by CMiYC · · Score: 1

      Ohhh. Great point.

      So that would mean we're looking
      Day 1: 8/sec
      Day 2: 16/sec
      Day 3: 24/sec ...
      Day 365: 2920/sec

      Which means units sold per day would be:
      Day 1: 691,200 ...
      Day 365: 252,288,000 units

      So in one year: 46,168,704,000 games were sold. At $50 a pop that's $2,308,435,200,000.00

      Wow. I had no idea the video game market was a $2 trillion dollar business.

    3. Re:I don't understand by Ryan+Stortz · · Score: 1

      I applaud you for figuring that out. I started to when I first posted my reply, but quickly realized I didn't really care enough. :)

      --
      Bugs are just features that have been fixed.
  9. Elitism? by Mike+Hawk · · Score: 2, Interesting

    Video game elitism. Who would have thunk it? Can someone who plays games be a false gamer? And who really identifies themselves as a gamer, let alone a true gamer? Not anyone that has much to brag about I would guess. Do you often find yourself in conversation saying, "Dude, you may be a gamer, but you aren't a true gamer."

    And this is coming from someone who plays games all day...

    1. Re:Elitism? by koi88 · · Score: 1


      Dude, you may be a gamer, but you aren't a true gamer.

      Text Version 1.1.:
      Dude, you may be an occasional gamer, but I'm a hardcore gamer (i.e., I play a lot).
      Satisfied?

      --

      I don't need a signature.
  10. Cliche Statement. by PocketPick · · Score: 2, Insightful

    This industry remains strong and poised for renewed double digit growth over the next five years as we enter a new cycle of video game console launches. The future could not be brighter.

    Isn't this how every industry sounds when it reaches a new zenith? Home desktop manufacturers, various ISPs, Cellphone service providers, ... the list goes on and on.

    What, based on history, will really happen is this:

    -Mergers to help consolidate costs of producing new games.
    -Complete outsourcing of all testing efforts, and eventually large portions of developments (for things such as graphics engines).
    -Stock inflation for small companies, followed by the eventual crash.
    -Longer hours for employees.
    -Higher costs for games and worse customer service.

    1. Re:Cliche Statement. by Anonymous Coward · · Score: 0

      Sigh.

      If "based on history, will really happen", shouldn't have this already happened in the past?

      If that has happened in "every industry", and by your conclusions, we're to assume that:
      -no one has a job anymore because they have all been "outsourced"
      -no one has any money to spend on games, because we all lost our money in the "eventual crash"
      -no one has can afford games any more because of "Higher costs "(see above also)
      -no one has any time to play any games anyways, because we're all working "Longer hours"

      So if this has already happened in "every industry", were did we get all this $7.3B to spend it on games in the first place? Are the CEOs of EA/M$/Take-Two/Whomever the only ones to purchase games?

      I don't mean to pick on you. You're not the first to decry the changes in business. (see those moaned against automation in automotive assembly lines ("but what will the workers do?!"), farm machinery ("where will the corn huskers go?!"), gas-pump attendants ("what will they pump NOW?!").

      (Ok I kid a little) You have valid concerns, and certainly somethings will come true, but that is the (unfortunate, but necessary) inevitability of the business cycle. If "Higher costs for games and worse customer service." are a result, we can and we will change our preferences. THAT, based on history, is what will really happen.

  11. More money != Quality by bluemeep · · Score: 1

    If anything, I worry MORE now that gaming has become big business. I can look at pretty much any given shelf in an EB or GameStop and immediately denote half of the titles as the shovelware they are. The rest are probably the "prestige" titles of various publishers from the last year or two. Honestly, the comparisons between Hollywood and gaming aren't that far off...

  12. More than the movie industry! by dmauro · · Score: 1
    Wow, $7.3B! That's more than the movie industry*!

    *not actualy more than the movie industry

    There has been way too much video game hype floating around this past year or more. I'm not complaining about the quality of games, or the marketing campaigns for games themselves, but rather this video game industry awareness campaign that tries to wow everyone into thinking video games are legitimate now (disregarding whether or not they have been a legitimate form of entertainment for some time now). Is this meant to get companies with big money interested in the video game industry, or am I supposed to buy more games now because I won't get picked on for being a geek since games are cool now?

    Apparently this campaign is lost on all my friends because they still pick on me whenever I come home with a new game.

  13. Alice by jbolden · · Score: 1

    I'm not a gamer but I was around back then (Inforcom text adventures + the original Scott Adams stuff):

    Alice, Resident Evil seriies, Bloodrayne. They are still releasing adventure games.

  14. yes by Anonymous Coward · · Score: 0

    That's how Dreamcatcher has remained in and grown their business.

  15. Once again, conflicting reports! by Anonymous Coward · · Score: 0

    Here we go again. Last week /. had a news post about how there was a litle shrinkage in revenue. Now it's growth? Which is it?