US Videogame Sales Have Biggest Drop In 9 Years 310
alphadogg writes "The recession appears to have finally caught up with the video game market. Sales of video game hardware and software were down by around one-third in June compared to the same month last year. After initially showing positive growth as the US slid into recession, the latest figures mark the fourth month of declines and the largest year-on-year decline in almost 9 years. 'The first half of the year has been tough largely due to comparisons against a stellar first half performance last year, but still, this level of decline is certainly going to cause some pain and reflection in the industry,' said Anita Frazier, a games analyst with NPD Group. She added, 'The size of the decline could also point to consumers deferring limited discretionary spending until a big event (must-have new title, hardware price cut) compels them to spend.' The entire video game market in the US was worth $1.2 billion in June, down 31 percent from the same period last year, according to NPD Group."
No good games (Score:5, Insightful)
Re:No good games (Score:5, Insightful)
Yeah, after reading the summary I though, If the video game industry needs sales of crap in order to be profitable, maybe the lesson should be make better games.
Also, they should look further than the current economic situation. It is getting too easy for people to site that as the cause for decline.
Surprisingly Level Headed Analysis (Score:3, Insightful)
Queue "Piracy" reasoning (Score:4, Insightful)
Watch.. this will turn into a big "See? Piracy is ruining the gaming business" blamefest... It's easier to blame piracy rather than crappy game design.. Of course, I'm sure the economy is playing a part as well. Although, from what I've read, people are reluctant to give up their hobbies, even in the face of a bad economy.
yeah... (Score:5, Insightful)
Money's tight. And honestly, I'm sick of seeing games priced at $59.99. I can wait until they hit ~$30 and buy them then. I'm long past the time when I HAD to have a game as soon as it releases.
So yeah. Lower the price of the games at initial launch, you'll make more sales....IMNHAAO (in my not humble at all opinion)
Buying used games? (Score:5, Insightful)
I don't believe NPD keeps track of used game sales, and a lot of gamers will be turning to Gamestop, Ebay, and Amazon to pick up used games there instead of buying them new. I've personally been buying more used and even selling a bit of my collection as there seems to be a lot of buyers out there (and of course, more sellers).
Games are too expensive to keep buying new. I let the suckers do that for me.
That's easy.... (Score:5, Insightful)
Most of the games that are coming out, suck.
Plain and simple. The problem with developers is that they are confusing great technology with great games. They can go hand in hand, but largely speaking -- games need story, innovation, depth. I played Defcon a few years back and was amazed at what innovation was put into such a small game.
Too bad the only thing developers do is give us some form of a shooter lately, and change the graphics and call it amazing. Bioshock had a good story, but that was like 2 years ago already.
Re:Queue "Piracy" reasoning (Score:3, Insightful)
Re:yeah... (Score:5, Insightful)
I used to regularly grab the must-have new release the day it hit shelves. Once they started passing my self imposed $50 mental barrier, I stopped.
I just can not physically bring myself to spend so much. I'd rather grab 4 used games from last year for the same total price.
I mean really, at the end of the day, they are just pushing gamers to Half.com, eBay, Gamestop, Amazon, and other used game outlets.
Where the publisher could potentially sell two copies at release for a slightly lower price ($39.99-$49.99 is a lot more attractive than $59.99+), they only sell one copy and then the re-seller retail stores take the profits from there for many years to come.
Re:Queue "Piracy" reasoning (Score:3, Insightful)
I think the real problem is that the game content has just gotten old, repetitive, and has lost its "wow factor". I mean, when Doom and Quake came out in the 90s, we were amazed at the graphics, and the levels, and searching for stuff, and blowing up monsters. But that sort of shoot-em-up mantra gets old after awhile. Plus, we've been promised a hugely awesome Duke Nukem Forever game, and they've hyped that like crazy every 2-3 years, for the past 15 years,... and we've still seen nothing. So if they can't figure out why their sales are dropping, I got nothin' for 'em!
Rent (Score:4, Insightful)
Innovation? (Score:3, Insightful)
seriously ... I'm not surprised. What happened to innovation? Most games now are all sequels to previous games with better graphics or newer engines than the previous release and the principal is still the same. Where is the cutting edge ? Something new that hasn't been done before ? A must have, giving the player full control of the virtual world . I think back on earlier rpg's for e.g. The player was actually allowed to input text instead of choosing from some stupid presets. Think of this with today's technology. In the end its not really the development studios its the damn publishers and other companies funding development studios so they can have their ads on startup screens and rape the profits.
Re:Buying used games? (Score:5, Insightful)
Irrelevent to the article, which is the the game industry revenue is down.
It's actually extremely relevent. If the game companies are selling less total copies because gamers are turning to used game outlets due to the ridiculous price of new releases, they are going to see hits to their bottom line.
Is that the only reason for the sales decline? No. Of course not. But it is definitely a contributing factor and one of prime concern for game makers [sfgate.com].
Re:No good games (Score:3, Insightful)
If the video game industry needs sales of crap in order to be profitable, maybe the lesson should be make better games.
Actually, the good games don't sell that well. Hence the pile of crap on the market.
Are they seriously using (Score:3, Insightful)
Re:No good games (Score:5, Insightful)
Re:yeah... (Score:4, Insightful)
I browse the Steam weekend deals. Usually once a month there's something worth buying for $10-$20 and I never have to worry about losing the disc (Half-Life 1 + Blue Shift - where hath you gone?) as long as the Steam servers don't roll over one day.
Re:That's easy.... (Score:5, Insightful)
Most of the games that are coming out, suck. Plain and simple. The problem with developers is that they are confusing great technology with great games. They can go hand in hand, but largely speaking -- games need story, innovation, depth.
I'd like to disagree - but I can't. I definitely consider myself a gamer, but many of the games that have come out recently just aren't that compelling.
The games I'm really waiting for are the next Ratchet & Clank and the next Uncharted.
Honestly, I'm having more fun with PlayStation Network titles. The price point is certainly lower, but I also don't expect as much out of a $10 or $15 game - compared to the punch a $55 game should bring. As a result, I'm not that disappointed if a cheap PSN game doesn't turn out that great. So I'm willing to take more of a risk for a PSN title than a $55 retail title.
Careful what you wish for (Score:3, Insightful)
Looking further would invariably produce "it's the pesky pirates".
It's a very human trait to look for the culprit outside of oneself. I.e. it's pirates. Not that I make sequels of games nobody wanted in the first place or that customers don't accept the rental system (aka SecuRom) DRM.
Produce games that people want and stop including crippling DRM that people loathe and they will buy. I just recently bought a few old games for a total of less than 50 bucks. Yes, on Steam, and yes, it's a bit hypocritical to rant about rented games when buying from Steam. But Steam offers pretty much what I want at the "price" of having it tied to my account. I can accept that. That's about as much DRM as I can live with. I don't resell games. But I expect my games to work whenever and however I want them to. Steam offers that.
Gimme what I want and I'll buy. Don't and I won't. Simple as that.
Re:No good games (Score:5, Insightful)
They must account for the games released during that time.
Precisely. And what was released on June 12, 2008? Metal Gear Solid 4.
Enough with the correlationisnotcausation tag (Score:5, Insightful)
The phrase is a reminder that two events may not be linked, not proof positive that they're not. You don't measure below-average rainfall during a drought, and then say "Let's keep in mind, other factors could be at play than a drought!" A drought IS an extended period of reduced rainfall, by definition. Similarly, there is no question that low sales are linked to a recession, because they define a recession.
Re:yeah... (Score:4, Insightful)
I have a friend who uses this logic. I don't understand it myself.
He bought Ghostbusters at launch. Both he and his fiancée beat it inside a week, then they sold it to Gamestop for about 25 bucks.
So he essentially rented it for 4-5x the going rental rate.
Re:yeah... (Score:3, Insightful)
Just this week Steam offered a package of old/ancient games for 50 bucks. In the fold things like Bioshock, Prey, CivCity, Railroad Tycoon 2 and 3, the XCom series, Pirates, Civ III and IV and a few more. Each and every single game a gem. An aged gem, granted, but they're still a hell lot of fun and they still provide a lot of enjoyment and entertainment.
50 bucks bought me about 20 games. At least 10 of them games that I'd prefer over many of the current releases any time, and certainly providing me with more hours of entertainment than any current game I could have bought for those 50 bucks.
Re:Games are obviously too cheap (Score:4, Insightful)
Yes, but the industry dropped prices with to move to optical media...and then promptly raised prices again because they added so much more content! I think the industry needs to realize that games don't all have to be 80-hour works of art with 20 different endings, all packed into that $59.95 wrapper. Give us games in the $30-50 range that have maybe 10-15 hours of game play, and I think players will flock.
Re:Buying used games? (Score:3, Insightful)
Your comment, by the way, was completely irrelevant and douchey for no good reason.
Re:Innovation? (Score:3, Insightful)
Newsflash: Games have matured. When video games were new, everything was innovative. As hardware evolved, and controls changed, things were innovative. There were a few ideas that made new genres... But most games these days can't be innovative because it's all be done before.
The Wii was supposed to be 'innovative', but ended up lackluster. Natal... I'm betting on more of the same.
And it's not that there aren't 'innovative' games... Every new innovative game in the 'casual' game industry creates a flood of new games. And Trash Panic (aka Gomibako) is pretty innovative. And Pain. And... Yeah, they're out there.
You know what might help? (Score:4, Insightful)
Here's a suggestion...
Try selling the fucking games for more than 45 minutes.
Seriously, instead of the normal price-dropping sequence, one thing I'm seeing a lot lately (mostly in niche games) is, after the really SHORT period where no one buys a game for $60, they just stop shipping it entirely!
A few months ago, I actually paid $65 for a USED copy of Ar Tonelico since I'd missed news of its release and no one had it! Not gamestop, not amazon... it's nuts.
I get a little tired of this one (Score:3, Insightful)
To me, when someone says this, it implies that they either are unreasonable picky, have a very narrow taste in games, or just haven't done any looking around. If you are the first, well then there's nothing I can do for you. If you are one of those people who has decided that anything less than perfection is failure then you will be continually disappointed in life. That is just how it goes. If you are one of the second people that is fine, but then don't whine about it. If you only like like a narrow selection of games just know that about yourself, and don't say that games "suck" just because they don't all cater to your narrow tastes. In the case of the last kind of person, well then just spend a bit of time on the net doing some research and downloading some demos.
However, I'll even help you out. Here are some games I have picked up recently that are worth it. Now please note not all of them are new releases, just games that I have recently purchased:
Street Fighter 4. This is an arcade style fighting game. One of the very best ever. Great visuals, great sound, fun to play, just an all around great game. Supports online play too so you can play vs other people remotely.
Aztaka. This is a side scrolling action-RPG in the style of Zelda II and such. However it is extremely well done, modern visuals and game play and the like. Also makes very good use of the mouse for various game aspects. It isn't that long, but it is good fun and not too expensive.
Left4Dead. Zombies and guns, what more do you want? Seriously though the game has excellent gameplay and wonderful coop play. Either with friends (and it has a system making it easy to play with your friends) or with random people or just with computer controlled characters, it is a great shooter.
Command and Conquer Red Alert 3: Classic Westwood RTS game. It is a fantastic addition to the series. Gameplay is smooth, difficulty curve is good and most of all it is just damn fun. I particularly like the RA game world because it doesn't take itself seriously, it is a goofy take on modern warfare. Also the cutscenes are top notch, they got actors who really did a good job at playing it.
Assassin's Creed. Sandbox world exploration and melee combat game. As the name implies, you play an assassin. You go around, stab people, climb buildings, hide in bales of hay, and so on. A fairly well done double story line and just flat out fun gameplay.
Those are five of the more recent purchases I've made that spring to mind. There are plenty more games I can recommend that are a little older (but still in the last year or so). There's also a few that have come out that I've not yet bought because I haven't had the time to play everything I have.
There are plenty of games out there, you just need to spend some time looking or asking around. Metacritic is a good starting point, they aggregate reviews so you can get a feel for how the response to a game is over all and thus if you maybe want to spend time looking at it more in depth.
Re:Steam (Score:3, Insightful)
Ya (Score:5, Insightful)
I've never gotten why people like that comparison metric. I mean I understand wanting to compare to how you did last year but at least to a 6 month rolling average. Games do not come out on rigid schedules, it isn't like "On the 4th day of June each year a massively popular game WILL be released." No, they come out when they are done, particularly in the case of better games. So you have to look at the sales over a period of time, like 6-12 months. If less games are sold for the whole year of 2009 than 2008 then yes, clearly there is a problem for the game industry. However if one month is down, so what? Maybe it just means that something people really want slid a month.
I know as a gamer I don't go around saying "Ok, it is time to buy my May game," I buy games when one I want comes out and I've got time to play it. That could mean I buy 3 games in a month, or that I buy no games for 3 months. It all depends on what is coming out when, and how my time is looking. Currently, I'm having to hold off on purchasing more games because I have too many, I've got a backlog. I bought games that I haven't yet got around to playing. Did that with Fallout 3. Picked it up not long after release since I love Fallout and it was on special. However, other than playing the intro, I haven't got around to it. Not because I wasn't enjoying it, just because I've been playing other things. However I want to play it, and I will, it is just an issue of time.
Re:No good games (Score:3, Insightful)
Also, they should look further than the current economic situation. It is getting too easy for people to site that as the cause for decline.
Except for the people who are highly unemployed are in their core demographic? I and the middle-aged lifer with a family is probably buying fewer games, too.
So I don't know. Sure, to be successful in business, you have to work to get your sales regardless, but you also have to be conscious of the context that your operating in.
Re:No good games (Score:3, Insightful)
Not only do they not necessarily sell as well, they cost more to make, too.
Remember, you COULD work on an artistic, original game that blends genres, hire GOOD voice actors, take your time developing it and testing it thoroughly, or you can make a knockoff of a movie in 6 months, period. And it will likely sell better.
Kinda funny (Score:3, Insightful)
While a lot of good points are made in this discussion, the central point is mostly missed. Reading headlines in the past few days, I've seen that manufacturing is down, sales are down, homes are being repossessed, people are out of work, hell, I am out of work. I've been working reduced hours since the new year, they finally laid be off 3 weeks ago, and no one knows when things are going back to normal. The wife has been working reduced hours since last thanksgiving. Money is tight, in my house, and in every house that I know of.
I'm quite certain that a lot of slashdotters have pretty secure jobs, and they can continue to purchase such trivial things as games. But, the economy really does suck.
There will be an article coming out in a few months, revisiting this same subject, but it will be "Game sales are down for the second half of 2009". Many of these same posts will be made, "Well, they haven't RELEASED anything in the last half year that's worth PLAYING!" But, a more people are going to put two and two together to make at least one (probably correct) conclusion: "The gaming industry has also been hit by the recession, they've had layoffs, fewer people are investing money in gaming, overpaid executives have been let go - people don't have the time or money to waste on gaming."
Those of you who haven't felt the recession in your wallet yet just MIGHT consider investing money in the economy, rather than wasting your money on some new game. Of course, it's your money - do with it as you please. But, when YOUR job is outsourced to China or India, you may wish that you had spent more wisely.
My two cents, anyway.
Me? I'm not dangling at the bottom of the food chain, yet. But, I seem to be slipping downward right along with most of America.
Re:Queue "Piracy" reasoning (Score:3, Insightful)
And?
I mean really, so what? Let them do it. Lately, I've stopped paying big bucks for crippled games. I've been burned enough by shitty and crippled and broken games that my price-point is $20. If it's $20 or less, I can justify the gamble that it's good. If it's more than $20, then it's off my list.
This does mean that I'm not playing the "OMG JUST RELEASED MUST GET IT!@!!!!!" games. But damn...how many games were released in the last 5 years? What percentage did I play?
In the last year I've played more games than in the years previous. However, I've paid the same or less money to do so.
Frankly, I don't gamble on $40-$60 games anymore. And I'm happy to let the industry who pushed me this way die a horrible death.
Re:No good games (Score:2, Insightful)
I waited for Spore to come out for years but when it dropped the news were rife with terrible DRM issues so I avoided it. Not even gonna torrent it, even tho folks already cracked the hell out of it.
The way i see it, if they don't want me to play their games, I'm not going to argue with them. There are endless other things for me to spend my time and money on, those motherfuckers just look at me funny and I'm gone. I'm not going to risk my computer on some bullshit.
Same goes for movies...is it just me or is it easier and more rewarding than ever to just walk away from what used to be compelling purchases?
Re:No good games (Score:3, Insightful)
But while your developers, artists, voice actors etc. will all make good money and feed their family, your investors will have to scrape by on a lousy 8%, which is not how we do things here.
Would you risk a large amount of capital for the prospect of an 8% return?
No, you wouldn't. Thats why blackjack pays 100% ROI every hand you beat the dealer, and 150% when dealt a winning blackjack.
No one would play if the possible outcomes were: lose everything, or get 8% ROI.
Venture capital is another form of [legalized] gambling. And they lose far more often than they win. So wins need to cover all their losses, and a decent compensation for their risk.