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Gamespot.com article; Game Industry could surpass music ind. in 5 years
I found this on GameSpot.com this today......
Gamespot.com article Music to games industry ears President of DFC Intelligence suggests that games industry revenues could pass those of the music industry within five years. DFC Intelligence has recently published two new reports highlighting the increasing similarities between the videogame and interactive entertainment industries with the music and movie industries. The reports suggest that the interactive entertainment industry will continue to enjoy growth worldwide, but also discuss the issues of rising development and marketing costs for games. "Revenue for the video game industry could pass the music industry in the next five years. More adults are playing games, the industry is expanding on a worldwide basis and online distribution is becoming a reality," said David Cole, lead author of The Business of Computer and Video Games 2004, and DFC president. "The interactive entertainment industry is still nowhere near the size of the movie industry," continues Cole. "However, production values are starting to compare with those in feature films. Increasing consumer expectations, along with other factors including the rising cost of talent, the need for large-scale marketing campaigns, adding online components and demand for high profile licensed properties are substantially increasing costs." The second report entitled The Impact of Licensing in Interactive Entertainment discusses the growing importance of licensed brands in the games industry, and it's not all good news according to lead author Dave Watson. "Companies are quickly learning that for certain well-known properties licensed from other media, having the best brand can be better than having the best game play," he said. According to DFC, the household penetration of game consoles in the U.S. is now around 43 percent, which actually doesn't represent any substantial growth in recent years. The market growth experienced is actually as a result of the consoles' increased usage within households with several players and, in many cases, multiple systems. DFC has also noted that the interactive entertainment industry is growing on an international basis, and suggests that the next challenge for companies is to expand into emerging markets whilst maintaining growth in core markets. Territories identified as emerging markets in the reports include South Korea, Taiwan, Singapore, mainland Asia, Australia, and Eastern Europe. By Justin Calvert -- GameSpot Posted: 03/23/04 05:19 AM You know, I've been saying that for a while now. One of the reasons the music industry profits are shrinking is because of the growth of the game industry. I really do believe that people think video games are a better entertainment value. Games are getting bigger and better while CD's have stayed the same. Most games you can get a good 20-30 hours of entertainment. When you add an online component that increases exponentially. By contrast, when you buy a CD you get maybe 45 minutes of entertainment, subtracting the throw away tracks, that gets whittled down to about maybe 8-12 minutes. It's called "changing tastes". We learned about on the first day of Economics 101. A class that the music industry needs to take again. |
Re: Gamespot.com article; Game Industry could surpass music ind. in 5 years
Originally posted by Captain Harlock By contrast, when you buy a CD you get maybe 45 minutes of entertainment, subtracting the throw away tracks, that gets whittled down to about maybe 8-12 minutes. I think a good album will provide you with many hours of entertainment; often more than a video game. But of course, most people don't sit down and listen to an album end to end as entertainment. I agree with you though, I'd much rather purchase a video game than a CD, because of the greater entertainment value. :thumbsup: |
no cd should be more than 10 bucks
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As if game/movie tie-in's were bad enough, here come the game/music tie-ins!
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Uuuuuuuhhhh....that's not really what the article says.
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You go "interactive entertainment"!!! :banana: :banana: :banana:
Way to stick it to the man where it counts, in his wallet! :hump: With the growing wealth and power, maybe one day you'll be just like the man and teach elementary school classes about how software piracy is bad for everybody! :D Poor little programmers :( |
Yeah, I can definitely see that happening. Music is great and all, but there's only so much technology that can have an impact on what we buy as music. Gaming is just going to keep improving as far as technology goes. And in the next 10 years or so, that should be pretty amazing!
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It's really a stupid comparison though. I listen to music more than I play games, and buy more CDs than I do games, yet I spend more on games because they cost nearly 5x as much a piece.
I can get most cd's I want for $10, games are going to be $40-50 in most cases unless I wait a year or more past release. |
I don't listen to music, heck, I turn off the music in any game that lets me.
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guess I'm going to have to download more roms now to slow the projection
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Originally posted by Josh Hinkle It's really a stupid comparison though. I listen to music more than I play games, and buy more CDs than I do games, yet I spend more on games because they cost nearly 5x as much a piece. I can get most cd's I want for $10, games are going to be $40-50 in most cases unless I wait a year or more past release. |
Hasn't the gaming industry already caught up to movies? I remember reading an article talking about how Hollywood was starting to pay attention to the Gaming Industry because it was quietly making tons of money and taking bodies away from movies.
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I'm kinda surprised that its still gonna take 5 years. I mean who really buys music anymore?
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Originally posted by PopcornTreeCt I'm kinda surprised that its still gonna take 5 years. I mean who really buys music anymore? |
Originally posted by PopcornTreeCt I'm kinda surprised that its still gonna take 5 years. I mean who really buys music anymore? |
Originally posted by illennium Let's see... millions of people? |
I buy a ton of music. I want to own a cd, not just download an mp3. Its more of a hassle to find the song you want, either for free or for .99 cents or whatever, and it doesn't sound as good as a cd. Plus, I have morals.
Captain Harlock, I understand that point. Games have grown incredibly. I still think it's stupid to compare revenues. They should compare units sold if they want to judge what's more popular since there's such a huge gap in price per unit with cds and games. |
Originally posted by Josh Hinkle I buy a ton of music. I want to own a cd, not just download an mp3. Its more of a hassle to find the song you want, either for free or for .99 cents or whatever, and it doesn't sound as good as a cd. Plus, I have morals. However I find myself buying more games and movies these days than CD's. There's just not a lot of new music that when I hear I say "WHOA!! I gotta get that CD!!". I think also there's more of a move toward interactive entertainment. |
Originally posted by Captain Harlock [BHowever I find myself buying more games and movies these days than CD's. There's just not a lot of new music that when I hear I say "WHOA!! I gotta get that CD!!". [/B] |
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