News Games market slump continues

[brumgrunt]

The world games market continues to shrink, with NPD Group claiming a 25% drop in March alone.

http://www.bit-tech.net/news/gaming/...market-slump/1

[Landy_Ed]

If digital distribution and in-game transactions for upgrades & add-ons are not being included, the numbers are fairly meaningless surely?

[Blademrk]

There are a few bright spots to be found in NPD's report: BioWare's Mass Effect 3 managed to sell more than twice as many copies as its predecessor in its first month, suggesting that there's still room in the shrinking market for a triple-A title to do well.

Initial sales for ME3 were good, but they dropped rapidly after the ending fiasco surfaced.

character packs for RFID-based collectible game Skylanders, also showed growth and accounted for seven of the top ten best-selling accessories for the month.

And it's still hard to find the Skylanders figures in the shops. They fly off the shelves as soon as they're back in stock.

[mighty_pirate]

It can't be helped by the fact that the release schedule for Q1 this year was pretty rubbish compared to 2010 & 2011 either.

[neocleous]

The current gen consoles are ancient in tech terms surely everyone who wants a PS3, Xbox and Wii has one by now release some new hardware and games and watch all the figures increase!

[Bauul]

I'd say this is misleading, as you're literally comparing a couple of months to another couple of months. Important for companies living hand-to-mouth (like Game was), but not indicative of the market overall.

I'd prefer to see some MAT (moving annual total) figures, this is a far more realistic view of the market, especially one that's seasonal.

On top of that, NPD admit themselves there figures only account for less than 30% of the actual gaming market, which isn't remotely representative. All it really means is retail sales are falling, and everyone knows that anyway.

[thil]

Wh-what?! They actually looked into digital sales?!

But everyone knows download sales aren't *real* sales!

[fodder]

1. We are moving to digital distribution quite rapidly, so these figures are only showing a small part of the picture and are expected to be in a negative trend.

2. Most big studios spend the bulk of their marketing and development budget on re-hashes of the same old games. People eventually grow out of/get bored of these games and move onto other things. IE oh no, not another MW game with slightly different weapons and even more quick fixes from ranks and perks.

Eventually there will be no growth, just a static turnover of old players leaving and new younger ones buying into the franchises.

[thil]

Originally Posted by fodder

1. We are moving to digital distribution quite rapidly, so these figures are only showing a small part of the picture and are expected to be in a negative trend.

Unfortunately, if the movie and music industries are anything to go buy, digital sales are going to get way worse before they get better...to many superfluous rich men in suits desperately trying to remain relevant in a changing world.

2. Most big studios spend the bulk of their marketing and development budget on re-hashes of the same old games. People eventually grow out of/get bored of these games and move onto other things. IE oh no, not another MW game with slightly different weapons and even more quick fixes from ranks and perks.

The ironic thing is that the more money they throw at a game...the worse it gets, as those holding purse strings start getting nervous, and then urge a risk-free game.

Eventually there will be no growth, just a static turnover of old players leaving and new younger ones buying into the franchises.

But it's OK, because a hyperactive's fourteen year old's money is as good as a mature gamer. Art? Who cares? Bottom line? Hell yes!

[fix-the-spade]

So... are we heading for another great crash?
Here's hoping, if even the great global public is getting sick of the annual re-skin schedule then something's got to shake it up...

[SexyHyde]

Originally Posted by thil

But it's OK, because a hyperactive's fourteen year old's money is as good as a mature gamer. Art? Who cares? Bottom line? Hell yes!

for a franchise like COD that brings out one game a year yes. but for the industry as a whole mature gamers tend to have much more disposable income. they keep the industry as a whole going. but then disposable incomes have been squeezed of late so i am not surprised in the least that retail has suffered as most people will be more inclined to save a few pounds by going digital/online and wait a few days to download/arrive.

plus there haven't been many good games released of late, in my eyes anyway, just waiting for cs:go (beta seems ok but it aint no tf2) and borderlands 2 (a game that seems to have a bit of coolness about it, refreshing!) now just to play my £5 deus ex download while i wait.

[misterd77]

everyone is playing WoT, or other free2play titles, I havnt bought a game in over 2 yrs....

[XXAOSICXX]

Originally Posted by Bauul

I'd say this is misleading, as you're literally comparing a couple of months to another couple of months. Important for companies living hand-to-mouth (like Game was), but not indicative of the market overall.

I'd prefer to see some MAT (moving annual total) figures, this is a far more realistic view of the market, especially one that's seasonal.

On top of that, NPD admit themselves there figures only account for less than 30% of the actual gaming market, which isn't remotely representative. All it really means is retail sales are falling, and everyone knows that anyway.

+1

Exactly this.

[javaman]

Basically it comes down to

a) nothing out there of note all big titles came out for christmas this year. Lat two year March was the big month
b) Still playing old titles. I've 20 games to catch up on and will only buy more if theres a steam sale on.
c) All my games are digital downloads and I refuse to buy from origin.

[vampalan]

Recession anyone? First things to go are the ones you can live without.
I now only buy my games on PC if they are discount from online retailer, I no longer impulse buy at the shops.

Smarthphone games.. sure, they are free or like less than a quid.

RRP of 50 pounds for a computer game on console, no thanks.

PSVita, 260 pounds, ermm..pass, see above.
3DS, 150 pounds, pass, I can play the same games without eye strain if I had the normal DS which I dont, see above.

More importantly how many versions of the same game using the same underlying software will people buy before they get bored.

[Bede]

Originally Posted by mingemuncher

everyone is playing WoT, or other free2play titles, I havnt bought a game in over 2 yrs....

Then you have missed out on a lot of games that I (and many others) have enjoyed. I've always found I can tolerate F2P for about 12 hours and then it just gets tedious.

[Roskoken]

At least they understand what the problem is and are trying to correct archaic business models unlike those assholes in Hollywood who just blame piracy.

[BLC]

I would argue that digital distribution is an even more important barometer in the video game market; much more so than movies or music. All of the major consoles have their own digital distribution stores which have full retail titles available for download, as well as smaller games, indie games, downloadable content, etc. It's even more important for the PC; the last few times I've been into the city centre, I've made a point of seeking out PC games in retailers. I cannot remember any time in the last year or so that I've seen a PC game on a retail shelf.

[andyb123]

every few months an article like this seems to come out that swings massively one way or the other...