
Video games are expensive.
This is not a startling revelation or breaking news — it’s afact.
In 2010, consumers spent $25.1 billion on video gameaccessories, content and hardware. according to the EntertainmentSoftware Association, the average gamer is 37 yearsold, meaning adults — not kids — are spending their hard-earnedmoney on this expensive hobby.
So, why is this important?
The video game industry has been struggling for much of 2011.according to the NDP Group, video games sales weredown 26 percent from 2010 through July. much of that can beattributed to a drop in hardware sales, down 29 percent from $313.8million in 2010. That can be explained by the lack of a new consolefrom Microsoft, Nintendo and PlayStation.
The drop in software sales — down 17 percent from $403.3 millionin 2010 — can also be explained.
Much of 2011 has been spent waiting for this — the last fourmonths. The last quarter of 2011 could bring record profits for theindustry, but it could also bankrupt gamers in the process.
It started Tuesday, with the highly-anticipated release ofGears of War3. it continues in October with the release ofForza Motorsports 4 (Oct. 11),Batman: Arkham City (Oct. 18) andBattlefield3 (Oct. 18).
November is ridiculous, as Uncharted 3 (Nov. 1), Modern Warfare3 (Nov. 8), Elder Scrolls V (Nov. 11) andHaloCombat Evolved Anniversary (Nov. 15) all hit theshelves.
I didn’t even mention Driver: San Francisco (Sept. 27),FIFA 12 (Sept. 30) or Saints Row: TheThird (Nov. 15).
It’s an exciting time to be a gamer, but it’s also a frustratingone.
While publishers made the curious decision to save their bestgames for last, consumers are left making the tough decisions.
How can I spend $60 on Gears of War 3, play it for a month,then plop down another $60 for Battlefield 3?
There will always be fans devoted to a franchise. it doesn’tmatter when it came out, but I was going to buy Gears of War 3.it doesn’t matter when it comes out, but I’m going to buy SaintsRow: The third. The moment those games are announced, they’resecured in my entertainment budget.
Would I love to get into Batman:Arkham City? Absolutely. Battlefield3, Modern Warfare 3 or FIFA12? yes, yes and yes. However, there are only so manyhours in the day and so many dollars in my wallet.
There are a number of franchises (Assassin’sCreed, Mass Effect, Bioshock) I’d love to experience, but cost ofentry is just too steep. I fell in love with Red Dead Redemption earlier this year, but italso took me nearly three months to complete.
I understand publishers and developers also face toughdecisions. Games released around the holidays are bound to bebetter sellers. Not only must they please their legions of fans,but stockholders and board members must also be satisfied.
Nearly 75 percent of American households play computer or videogames. over 55 percent of gamers play games on their phone orhandheld devices. so, while more and more people are gaming, thecompetition for their attention — and more importantly theirwallets — is becoming tougher.
It seems like a nice problem to have — too many good games — butthat doesn’t make it any less frustrating.
So, what can be done?
The industry could do a better job of spacing, but who wants tovacate those holiday spots for gaming’s dead period (aka thesummer)? A price drop would sell more games, but it would cut intoprofits divide gamers’ attention across even more titles.
In the end, there’s no magic answer. As the cost of gamescontinues to rise, and the number of quality titles increases, theonus will be on the publishers and developers to create bettergames that justify their price tags.
There will always be a demand for quailty games, no matter howmany flood the market.
And that’s not a revelation or breaking news — it’s a fact.