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BBC Ponders Another Games Industry Crash

Posted by Zonk on from the just-like-clockwork dept.

weirdguy writes with a link to a BBC article that poses the same question asked by journalists every couple of years: is the games industry headed for another crash? "Yes, gamers are snapping up the new generation of games consoles — Microsoft's Xbox 360, Nintendo's Wii, and Sony's Playstation 3 [PS3], but at huge cost to the industry. Hardware makers are losing hundreds of dollars on every console sold, and games publishers face an "increasingly difficult environment, as rising development costs and small user bases [mean] that return on investment in next generation games development is unlikely to be achieved before 2008," according to media analysts Screen Digest. More importantly, though, the video games publishers are facing a revolution of their business model."

5 of 219 comments (clear)

  1. eh... by Dance_Dance_Karnov · · Score: 5, Insightful

    Nintendo figured out the secret to not losing money. They make money. Crazy I know.

    1. Re:eh... by wframe9109 · · Score: 5, Insightful

      Not to mention the fact that up front development costs are smaller for the Wii... And I would imagine development costs and time would be lesser as well, seeing that there is less horsepower to work with, and thus spending days getting the acne or sweat right would be pointless.

      In any case... It's a good time to be a gamer :)

    2. Re:eh... by HappySqurriel · · Score: 5, Insightful

      It's a good thing they're not losing money on those consoles, cause they're certainly not making any on games. What's the only game 90% of the Wii owners are playing? Wii sports. And are they buying others? Nope, because the gimmick pretty much ends there. Oh, wait, some people got Wii Play. Oh, sorry, right, and some other people bought into the princess franchise, recycled elf adventure game #41.


      Well, according to NPD the Wii has had 5,758,750 games sold to 2,107,500 systems in North America to the end of February which works out to 2.75 games per system above and beyond Wii sports; this (of course) doesn't include sales of Virtual Console games and (last time any data was reported) Wii points cards were one of the most popular accessories being sold.

      "Nintendo makes games that are fun! I can get all these awesome things on virtual console!" All the Nintendo zealots are welcome to enjoy paying $10-$20 per title for games they already bought 20 years ago because they're "more fun" and "more creative", while all the while ragging on Microsoft and Sony for selling games that "look pretty but aren't fun".


      Well, the price is $5 to $10 and a lot of the games are considered some of the best games ever created. Personally, I never owned a Turbo Graphics 16 or Sega Genesis so I'm happy to put down $5-$10 for a game I haven't played before which is considered to be amazing.

      People will get tired of the Wii's one-trick-pony and Furby-inspired "marketing" campaign soon enough, about the same time they realize that plugging a system into their HDTV that actually looks good improves their enjoyment of rehashed game ideas more than a repetitive strain inducing controller.


      I think you don't understand the Wii at all ...

      People are tired of the rehashed game idea regardless of whether it is in HD, SD or uses limited Wii functionality; the games people are excited about are the ones which are breaking new ground. There is a reason why Rayman Raving Rabids, Madden and Red Steel are the best selling third party games to date and that is because they offer gameplay that couldn't be done on the PS3 or XBox 360.

      And you know what the BEST part of that will be? Not having to see 12 identical comments pop up on Slashdot with the exact same "ZOMG LOLOLOLOL I LOVE NINTENDO! ROFL MSONY SUX LOL!" remarks as soon as any article about platform differences shows up. Sure, it'll mean the two anti-Nintendo trolls like this will disappear, too, but at least these posts break the trend.


      This would probably have more meaning if you weren't the same Anonymous Coward Sony Fanboy Troll that has been proclaiming the doom of the Wii since TGS 2005. Right now I think you're caught between the denile stage and rage stage on your way towards acceptance.
    3. Re:eh... by Danse · · Score: 5, Insightful

      A powerful trick that sells well, but, like Guitar Hero, a single-trick novelty.

      Guitar Hero is a good game. It's fun. What else is it supposed to be? Do you want it to make you breakfast too? Change your oil maybe? What exactly is it that you're expecting from a game?
      --
      It's not enough to bash in heads, you've got to bash in minds. - Captain Hammer
  2. Lack of Innovation by bhunachchicken · · Score: 5, Insightful

    The main problem stems from the fact that there is just a constant deludge of first person shooters and racing games. The Xbox 360 is by far the worse offender in this regard. There seems to be little else on the platform worth looking at.

    The other issue is that the cost of development is becoming so high now that devs are less willing to take risks on new IPs and gameplay styles. Look at Clover Studios - They made Viewtiful Joe, Okami and God Hand, all great games that did nothing but cause the company to fold.

    I wouldn't be surprised if as this console generation moves on developers make more money from the smaller downloadable games on Playstation Network, etc. than from the big box retail ones.

    --
    THE HONOUR OF THE KNIGHTS - CC Licensed Sci-Fi Novel