#1 Posted by Sir_Lizardman (121 posts) -

According to Microsoft, gaming is the healthiest as it ever been. Last year the game related revenue grew 7% lead by growth in new business models and more gaming capable devices (they probably mean phones and tablets). There is now over a billion people in the world that play video games. More info can be found in the link below and this week's major nelson podcast.

http://news.xbox.com/2013/05/x360-aaron-greenberg-industry-growth

You know these numbers are legit as they had Micheal Pachter reviewed them.

#2 Posted by Video_Game_King (36272 posts) -

You know these numbers are legit as they had Micheal Pachter reviewed them.

I can't tell if you're being sarcastic or not.

#3 Posted by Sir_Lizardman (121 posts) -

@video_game_king: I am being a little sarcastic as in I don't think the general public or for myself for that matter, would react to them any differently if Micheal reviewed them or not. For some people maybe they will believe the numbers even less. That being said I am a Pachter fan and I make sure to catch ever new Pach-Attack on Saturday.

#4 Edited by Hailinel (25205 posts) -

And yet, companies are posting massive losses left and right.

This is healthy?

#5 Edited by Slag (4855 posts) -

Consider the source

#6 Edited by audioBusting (1672 posts) -

I think it makes sense, considering how many people play games like Zumba Fitness and whatever's on their phone. My sisters play games on their phone IM app, for chrissake. The companies losing money are mostly the ones not digging into those goldmines or mismanaging their resources.

#7 Edited by Gamer_152 (14109 posts) -

Of course Microsoft are going to try and make things look good, but to look at these numbers and go "The game's industry is obviously doing great" would be hugely reductionist. Yes, a lot of money is being made from games, yes, this generation has seen more profits than last generation, yes, we may be seeing profits this year over last year, but economics are much more complicated than just looking at those numbers. While there may have been growth in this generation overall and while a lot of people are still making profit, the thing that has had people worried is that recently a lot of companies have been reporting lower and lower profits, and a lot of companies have been laying off people, and these figures don't do anything to combat those facts.

Now I'm not convinced that all the figures that commonly get flaunted are representative of some sort of industry apocalypse, but you have to accept that they're there and at some point you have to start thinking "To what extent do these represent a decline of the industry and to what extent is this just the current gen winding down and other economic factors creeping in?". Even if things are looking up for the games industry now, that doesn't really disprove a theory about the industry that's getting increasing support; that the constant race to have the best, flashiest game is going to push game budgets ever-higher, until it's very difficult to make a profit on games, and the industry has to make a huge change or else collapse in on itself.

Moderator
#8 Edited by TruthTellah (9470 posts) -

Well... sure. Gaming as a whole is growing and diversifying. Who is saying there is going to be a big gaming crash? Forum prognosticators?

Some big studios continue to have to change where they're investing their resources, but that's a manageable issue. Things are changing. That doesn't mean everything is bad or falling apart though. This is a good time for making and buying games, and globally, it's one of the most accessible times in gaming's history. We may personally feel jaded about the current industry and have fears for the future, but gaming itself is doing fine.

#9 Posted by Daneian (1251 posts) -

@hailinel said:

And yet, companies are posting massive losses left and right.

This is healthy?

Are these mutually exclusive? Can't gaming as a whole be growing despite high cost productions having a hard time earning back their development costs?

#11 Posted by devilzrule27 (1239 posts) -

@daneian said:

@hailinel said:

And yet, companies are posting massive losses left and right.

This is healthy?

Are these mutually exclusive? Can't gaming as a whole be growing despite high cost productions having a hard time earning back their development costs?

That sounds kind of unhealthy

#12 Edited by TruthTellah (9470 posts) -

@devilzrule27 said:

@daneian said:

@hailinel said:

And yet, companies are posting massive losses left and right.

This is healthy?

Are these mutually exclusive? Can't gaming as a whole be growing despite high cost productions having a hard time earning back their development costs?

That sounds kind of unhealthy

It does mean some companies are acting in an unhealthy way, and they will likely be changing up their tactics to address that. Which has happened numerous times in the short history of gaming. We don't need to conflate some real studio issues with our worst Internet forum fears.

Plenty of small and medium-sized developers are making more even when selling less, as they're being smart and realistic. There is still a growing demand for games, and while some big studios will waste their money thinking that spending a hundred million on advertising will make a mediocre game a hit, others companies will adapt as they have in the past and find ways to thrive in the current situation.

#13 Edited by devilzrule27 (1239 posts) -

@devilzrule27 said:

@daneian said:

@hailinel said:

And yet, companies are posting massive losses left and right.

This is healthy?

Are these mutually exclusive? Can't gaming as a whole be growing despite high cost productions having a hard time earning back their development costs?

That sounds kind of unhealthy

It does mean some companies are acting in an unhealthy way, and they will likely be changing up their tactics to address that. Which has happened numerous times in the short history of gaming. We don't need to conflate some real studio issues with our worst Internet forum fears.

Plenty of small and medium-sized developers are making more even when selling less, as they're being smart and realistic. There is still a growing demand for games, and while some big studios will waste their money thinking that spending a hundred million on advertising will make a mediocre game a hit, others companies will adapt as they have in the past and find ways to thrive in the current situation.

Medium sized developers are the ones who are struggling most. You're right a crash isn't gonna happen more then likely but there are still some major "shifts" in gaming coming in the future. A lot of people will see the types of games they love go away, they already have, and while it may not be widespread crash it's still a crash of individual segments of the gaming demographic. Thats a potentially troubling concern. At least thats how I feel.

#14 Edited by TruthTellah (9470 posts) -

@devilzrule27 said:

@truthtellah said:

@devilzrule27 said:

@daneian said:

@hailinel said:

And yet, companies are posting massive losses left and right.

This is healthy?

Are these mutually exclusive? Can't gaming as a whole be growing despite high cost productions having a hard time earning back their development costs?

That sounds kind of unhealthy

It does mean some companies are acting in an unhealthy way, and they will likely be changing up their tactics to address that. Which has happened numerous times in the short history of gaming. We don't need to conflate some real studio issues with our worst Internet forum fears.

Plenty of small and medium-sized developers are making more even when selling less, as they're being smart and realistic. There is still a growing demand for games, and while some big studios will waste their money thinking that spending a hundred million on advertising will make a mediocre game a hit, others companies will adapt as they have in the past and find ways to thrive in the current situation.

Medium sized developers are the ones who are struggling most. You're right a crash isn't gonna happen more then likely but there are still some major "shifts" in gaming coming in the future. A lot of people will see the types of games they love go away, they already have, and while it may not be widespread crash it's still a crash of individual segments of the gaming demographic. Thats a potentially troubling concern. At least thats how I feel.

You mean medium-sized developers who are still trying to make B games? Because there is definitely more of an interest in things either being great or meh and not really "alright". Though, budgeted appropriately, even those games can do well. The issue is some developers(often in conjunction with a big producer) relying on advertising, multiplayer, or big DLC to make an alright game with an inflated budget sell like a great or super popular game. Under this style of management, even a good game could sell millions without surpassing their overall budget(ex. Tomb Raider, budgeted to sell in the top 10 of games ever, while it sold within the top 100 ever). A lot of it is really about where these companies are investing their resources and planning ahead.

Tim Schafer did an AMA on Reddit earlier this year, and he brought up a point that is relevant to this. He was asked how they keep afloat despite some perceived financial "failures" like Grim Fandango or Full Throttle, and he replied:

"Full Throttle was actually a big hit. Gave me the money I eventually used to found Double Fine.

Every game we've made at Double Fine has made a profit. We just haven't had a blockbuster yet. Luckily our business plan isn't dependent on blockbusters. You can make a lot of money off a game that sells less than that if you keep your costs down and plan ahead."