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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."

7 of 45 comments (clear)

  1. 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 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.

  2. 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.

  3. 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.

  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.