Summary
Sometimes we're so close to something that we can't see what's going on. Videogames are now tipping the scales in the entertainment industry.
Analysis
A recent article from Variety (the entertainment industry publication) reported that Grand Theft Auto IV had just broken a one-week sales record not just for videogames but also probably for any entertainment product ever. We are now at the tipping point!
Back at the end of 1982 the Wall Street Journal declared the game industry dead following Atari's failed earnings report that brought down Warner Communications stock and caused a "bust" in the game industry. Eight years later in another article, the same paper announced that "despite earlier reports in this newspaper" the game industry was indeed very much alive and they were shocked to find that Nintendo now accounted for 90% of the market.
The game industry went through a period of 40% growth ending this past year at $18 Billion. This is in an otherwise down economy.
The writer's strike drug on for three months and very few 18-34 year old males even noticed. They spend far more time playing games than watching television. An even more serious problem, because they are the ones motion picture studios try to market their new movie releases to.
Videogames are here to stay. They are the only truly interactive form of entertainment, where they player is a participant and not a mere spectator. He makes a difference in the outcome of the game. Others lives (even if they be imaginary ones) depend on his actions. If he does well, he can save the world. If he does poorly he can always try for a rematch. Those that play games aren't going to outgrow them as the Wall Street Journal had previously assumed. And in fact, due largely to Ninteno's marketing strategy the market has expanded not only in sales but in the consumer base. Seniors are bowling from their wheel chairs using a Wii-motes. Games have never been as diverse or appealed to such a wide audience.
Game companies went through a period back in the late 80s and eraly 90s where they changed their names, from Virgin Games (for example) to Virgin Interactive Entertainment and then after a year or two they went back. Those of us that work in the game industry are proud that we make games. We're not making movies. An interactive movie might have one or two places where you could affect the outcome. In a game everything you do affects the outcome.
Movies don't always make good game licenses. Look at E.T. one of the causes of Atari's downfall. Of course it was given a ridiculous deadline and Atari overpaid by a factor of 10 or 20 what they should have for the license. To recoup their advances, they would have had to sell one to every single Atari owner and then hope that millions more also bought their console and the game.
It's not unusual for the game industry to be doing as well or better than other forms of entertainment. Depending on which industry's figures you use we have been at or better the film industry for some time. What is unusual is that Variety is sitting up and taking notice. Perhaps they will start devoting more space to covering the game industry as part of the overall entertainment industry.
This is an exciting time to be a game developer.
