Homogenization of the video game market
03-29-04, 02:46 AM
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Homogenization of the video game market
Video Game Industry Faces 'Crisis of Creativity' By Reed Stevenson and Ben Berkowitz
SAN JOSE, Calif. (Reuters) - The video game industry is facing a hardening of the creative arteries as aging gamers' tastes increasingly shift toward sequels and games based on movies, industry participants said this week.
With more and more titles chasing the success of their predecessors and content owners digging deep into their libraries to tap older material for quick fail-proof conversion into games, the industry is faced with a question more serious than rhetorical: What's new?
"The gaming industry will shrink unless we start to see new games," said Toru Iwatani, who created Pac-Man, one of the first video games to become a worldwide hit.
One of the industry's first huge hits, published by Namco Ltd. (9752.T) in 1980, Pac-Man crossed gender lines and became a huge hit with women.
At the Game Developers Conference in San Jose, California, a gathering of industry insiders where the talk is more about how games are made than how they are sold, the dearth of new titles and the increasing cost of developing games was a common theme at keynotes and panel discussions.
The high up-front costs of developing games is also pressuring developers to rely more on sure-fire hits and take less risks on new, innovative titles.
Electronic Arts Inc. (NasdaqNM:ERTS - news), the gaming industry's largest publisher, has perfected the art of getting gamers hooked on yearly releases of sports games and turning out versions of movie hits such as "The Lord of the Rings: The Return of the King" and "Harry Potter (news - web sites): Quidditch World Cup."
EA's U.S. market share in 2004 is more than twice that of its closest competitor, and the company generates more revenue in the December quarter than its closest competitor does in an entire fiscal year, driven in large part by those repeat sports and film titles.
CONSERVATIVE GAMERS?
Out of the top 100 games sold in Japan during 2001, 10 were original titles, but that number was halved in 2002 and fell to merely two in 2003.
"The ratio of original titles to sequels is dropping dramatically," said Ryoichi Hasegawa, an industry veteran who was at Sega Corp. (7964.T) before joining Sony Corp (news - web sites).'s (6758.T) gaming business.
Things are little better in the United States, where last December, according to the NPD Group, more than half of the 20 best-selling games on all platforms were sequels or derivatives of existing properties.
Part of the problem is the advancing average age of gamers, which is rising as the industry matures.
Last summer, the Entertainment Software Association, an industry trade group, found that the average age of gamers had risen to 29 years old, dispelling the view that gamers consist mainly of teenagers.
"Core gamers are advancing in age and they are becoming more conservative," Hasegawa told a panel.
Sony , which dominates the global console market, is planning for its PlayStation 2 (news - web sites) console to have a lifespan of at least a decade, and its executives acknowledge that with such a long cycle, its user base will naturally age and have different tastes.
"We have to think very carefully about the type of audience we're reaching with our games," Andrew House, an executive vice president with Sony Computer Entertainment of America, said in a keynote address at the conference.
But it is not just EA chasing after proven material. Upcoming titles such as "Halo 2," "Half-Life 2," "Doom III" and "Grand Theft Auto: San Andreas" are all expected to top sales charts this year, in large part because the games that preceded them were so successful.
And licenses for films and TV shows are being snapped up left and right by publishers counting on consumers to opt for something familiar when trying to decide how to spend their $30 to $50 per game in discretionary income.
Just this year, EA has licensed "The Godfather" and Take-Two Interactive Software Inc. has set up an ongoing licensing deal with the Cartoon Network.
Ubi Soft (UBIP.PA) announced on Thursday that it had licensed the early 1980s TV series "The Dukes of Hazzard."
Despite the proliferation of sequels and licensed games, Pac-man creator Iwatani said that he had seen this happen before during his 20 year-career, and that new and revolutionary new games appear in a two- to three-year cycle.
"It's difficult right now but I expect to see a recovery in a couple years," Iwatani said.
SAN JOSE, Calif. (Reuters) - The video game industry is facing a hardening of the creative arteries as aging gamers' tastes increasingly shift toward sequels and games based on movies, industry participants said this week.
With more and more titles chasing the success of their predecessors and content owners digging deep into their libraries to tap older material for quick fail-proof conversion into games, the industry is faced with a question more serious than rhetorical: What's new?
"The gaming industry will shrink unless we start to see new games," said Toru Iwatani, who created Pac-Man, one of the first video games to become a worldwide hit.
One of the industry's first huge hits, published by Namco Ltd. (9752.T) in 1980, Pac-Man crossed gender lines and became a huge hit with women.
At the Game Developers Conference in San Jose, California, a gathering of industry insiders where the talk is more about how games are made than how they are sold, the dearth of new titles and the increasing cost of developing games was a common theme at keynotes and panel discussions.
The high up-front costs of developing games is also pressuring developers to rely more on sure-fire hits and take less risks on new, innovative titles.
Electronic Arts Inc. (NasdaqNM:ERTS - news), the gaming industry's largest publisher, has perfected the art of getting gamers hooked on yearly releases of sports games and turning out versions of movie hits such as "The Lord of the Rings: The Return of the King" and "Harry Potter (news - web sites): Quidditch World Cup."
EA's U.S. market share in 2004 is more than twice that of its closest competitor, and the company generates more revenue in the December quarter than its closest competitor does in an entire fiscal year, driven in large part by those repeat sports and film titles.
CONSERVATIVE GAMERS?
Out of the top 100 games sold in Japan during 2001, 10 were original titles, but that number was halved in 2002 and fell to merely two in 2003.
"The ratio of original titles to sequels is dropping dramatically," said Ryoichi Hasegawa, an industry veteran who was at Sega Corp. (7964.T) before joining Sony Corp (news - web sites).'s (6758.T) gaming business.
Things are little better in the United States, where last December, according to the NPD Group, more than half of the 20 best-selling games on all platforms were sequels or derivatives of existing properties.
Part of the problem is the advancing average age of gamers, which is rising as the industry matures.
Last summer, the Entertainment Software Association, an industry trade group, found that the average age of gamers had risen to 29 years old, dispelling the view that gamers consist mainly of teenagers.
"Core gamers are advancing in age and they are becoming more conservative," Hasegawa told a panel.
Sony , which dominates the global console market, is planning for its PlayStation 2 (news - web sites) console to have a lifespan of at least a decade, and its executives acknowledge that with such a long cycle, its user base will naturally age and have different tastes.
"We have to think very carefully about the type of audience we're reaching with our games," Andrew House, an executive vice president with Sony Computer Entertainment of America, said in a keynote address at the conference.
But it is not just EA chasing after proven material. Upcoming titles such as "Halo 2," "Half-Life 2," "Doom III" and "Grand Theft Auto: San Andreas" are all expected to top sales charts this year, in large part because the games that preceded them were so successful.
And licenses for films and TV shows are being snapped up left and right by publishers counting on consumers to opt for something familiar when trying to decide how to spend their $30 to $50 per game in discretionary income.
Just this year, EA has licensed "The Godfather" and Take-Two Interactive Software Inc. has set up an ongoing licensing deal with the Cartoon Network.
Ubi Soft (UBIP.PA) announced on Thursday that it had licensed the early 1980s TV series "The Dukes of Hazzard."
Despite the proliferation of sequels and licensed games, Pac-man creator Iwatani said that he had seen this happen before during his 20 year-career, and that new and revolutionary new games appear in a two- to three-year cycle.
"It's difficult right now but I expect to see a recovery in a couple years," Iwatani said.
I don't think it's as dire as this article makes it sound. Most games created on movie or television licenses do suck, though. I don't buy the theory that older gamers are more conservative; it seems younger players who haven't been exposed to a variety of games and genres would be more conservative. I think game developers just aren't creating many good innovative titles -- I blame them.
Last edited by funkyryno; 03-29-04 at 06:16 AM.
03-29-04, 03:26 AM
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That article is lame. So there are more sequels then originals, big deal. Movie themed games generally stink anyhow. Plus, the sequels were original ideas in the first place, so it all has to start somewhere.
I wonder what the top selling non sequel games of 2003 were? Call of Duty has to be one, I'd think.
I wonder what the top selling non sequel games of 2003 were? Call of Duty has to be one, I'd think.
03-29-04, 06:26 AM
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I agree that this article is lacking. They are discussing the number of "original" games as being games that aren't a sequel. But so many "original" games are just knock-offs of established hits.
I think that this has always been the case that investors want to put money towards areas that have been proven successful. This is true with movies and you get New Line spitting out junk 90% of the time, but then they take some of that profit to support Fine Line which is where more of their Art House projects are that they don't expect will turn a profit. I think videogames will do something similar (especially if sales start to decrease).
I think that this has always been the case that investors want to put money towards areas that have been proven successful. This is true with movies and you get New Line spitting out junk 90% of the time, but then they take some of that profit to support Fine Line which is where more of their Art House projects are that they don't expect will turn a profit. I think videogames will do something similar (especially if sales start to decrease).
03-29-04, 08:24 AM
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there is nothing new under the sun. even complaining about the lack of originality in whatever... like movies, games, music, etc.
Iwatani is correct. 'Despite the proliferation of sequels and licensed games, Pac-man creator Iwatani said that he had seen this happen before during his 20 year-career, and that new and revolutionary new games appear in a two- to three-year cycle.
"It's difficult right now but I expect to see a recovery in a couple years," Iwatani said.'
Iwatani is correct. 'Despite the proliferation of sequels and licensed games, Pac-man creator Iwatani said that he had seen this happen before during his 20 year-career, and that new and revolutionary new games appear in a two- to three-year cycle.
"It's difficult right now but I expect to see a recovery in a couple years," Iwatani said.'
03-29-04, 08:27 AM
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The video game industry is facing a hardening of the creative arteries as aging gamers' tastes increasingly shift toward sequels and games based on movies, industry participants said this week.
First, there have *ALWAYS* been games based on movies. However, there are only SOME that are good. Is it because the LOTR games were popular, that they latch onto it and apply it to everything?
That article is a simpleton view of things. Reactionary and overly dramatic.
03-29-04, 11:09 PM
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It happens in every industry. A good idea comes around and every body runs it into the ground. Then something new rises up and people run that into the ground. Look at "reality television".
I do agree that the gaming audience is getting older. But that should mean we should be seeing more sophisticated games as well as general audience games.
I do agree that the gaming audience is getting older. But that should mean we should be seeing more sophisticated games as well as general audience games.
03-30-04, 12:13 AM
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Originally posted by NitroJMS
Godfather: The Game?
Godfather: The Game?
03-30-04, 12:33 AM
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I've noticed this trend ever since Doom and Dune 2 came out. Rather than come up with original game designs, it is instead a competition to see who can make the prettiest clone. While I enjoyed call of duty greatly, and had plenty of fun playing my friends on the LAN, it is just as novel as playing Duke nukem on the network was. I certainly enjoy playing warcraft III against human opponents, but lets face it. I've been playing the same game since I played Command and Conquer against my brother in 1995.
03-30-04, 08:28 AM
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Sometimes you can take a good game and with a little effort make it even better. Case in point - Civ, Civ II, Alpha Centauri, Alien Crossfire - my favorite series of games.
It doesn't always work, they blew it on Civ III although I think Sid Meier didn't have any input on that game.
It doesn't always work, they blew it on Civ III although I think Sid Meier didn't have any input on that game.
