Video games beat home movies – Global recession is helping
Video gaming is now officially bigger than watching home movies… kind of. In terms of hard money at least, the games industry brings in more than the home movies industry does, even with the twin threats of DVD and Blu-ray. And what’s helping this trend? The global recession.
Video games are becoming ever more popular as the years roll by. What began as a niche hobby enjoyed by the few is now a mainstream pastime for millions of people. Video gaming also welcomes all types of people, from all walks of life, in every country around the world. Truly, our hobby has matured far quicker and far more than I ever thought it would.
Video Business reports how research group, Media Control GfK International, has filed an end-of-2008 report into the state of the packaged media business over the last 12 months. Its findings include the news that for the first time ever, video games sales have outweighed home movie sales (DVD and Blu-ray). And this trend is set to continue into 2009 and beyond.
Software sales are up 20 percent worldwide to $32 billion. Combined DVD and Blu-ray sales fell 6 percent, amounting to $29 billion. This constitutes a 53 percent market share for video games, the first time it has risen above the 50 percent mark.
Gfk predicts next year to be even more impressive for the games industry. Software sales will climb another 12 percent, with DVD and Blu-ray dropping another 4 percent. And all of this while we are slap bang in the middle of a worldwide recession which is meant to have knocked everyone’s disposable income for six.
But the recession could actually be helping the games industry for a couple of very important reasons. Firstly, games are great value for money. Sure, they can cost up to $60 or $70 apiece, but if chosen well that outlay becomes money well spent for the amount of enjoyment you get out of a game. Some games have literally taken up hundreds of hours of my life, and that’s even without taking the online aspects into account.
Then there is the fun factor. While movies can be maudlin, depressing stories which leave you wanting to kill yourself, games are generally built with fun in mind. There are games that play on fears and horrific events but you’re still likely to be entertained while playing them. Movies cannot guarantee that, especially because of the non-interactivity involved.
Games aren’t recession-proof, as the recent closures of various studios and developers attests, but in terms of consumer spending, the poor economy could actually be helping lift sales. When in doubt, immerse yourself in a video game. Amen to that.
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5 Responses to “Video games beat home movies – Global recession is helping”
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January 28th, 2009
If people are trying to save money, I could see rental of both going up while sales going down.
I could easily see games making more money as they are in some cases three times more expensive than movies.
January 28th, 2009
Dave: Try giving credit where credit is due, The Wii is responsible for the spike in the game industry and the Wii alone.
January 28th, 2009
@ncassie
Don’t forget the numbers the DS and PSP are putting up in Japan.
January 28th, 2009
Yeah, The DS but PSP is more for hard core gamer and some people use it for movies on the go.
PSP just started to take off the past year or two.
January 28th, 2009
I think Phranc may be on to something. Don’t these numbers also include consoles? Games, Consoles, add on peripherals all cost more than a DVD/Blu-ray, Movie ticket, or CD.