Gaming sales growing much faster than music or movies

Ars technica has a post Growth of gaming in 2007 far outpaces movies, music summarizing the health of the gaming industry in 2007.

“2007 was a banner year for video gaming, and the industry has the figures to prove it. The Entertainment Software Association announced today that total sales for 2007 were $18.85 billion, with $9.5 billion of that spent on games (both PC and console) and $9.35 billion on consoles.”

Most of the software sales (70%) were for console games with handhelds accounting for another 20% and PC games picking up the last 10%. But here’s a quote I fund most interesting.

“There were also some changes in terms of who was purchasing the games. Two groups whose game-buying habits changed drastically during 2007 were people over age 35 (guilty) and females. Much of that is due to the incredible popularity of the Nintendo Wii, which has made gaming accessible to a whole host of people who would otherwise have never picked up a controller.”

and then this graph tells the story visually.

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How to build your own gaming computer

If you were motivated by Professor Olano’s recent post on games that require high-end machines to, here’s a site for you — Learn How to Build Your Own Gaming Computers. It covers all aspects of assembling a computer optimized for gaming. Building your own box or upgrading your current one can save you money as well as give you hands on experience with current hardware technology.

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Targetting the high-end sliver of the game market

Seen over at Beyond3D: The PC version of Ubisoft’s Assassin’s Creed requires a dual-core machine with at least two gigabytes of RAM (plus a handful of other requirements on graphics cards and the like that, while certainly not low end, are not unheard of either). I’m a big fan of technology and doing the most you can with the latest and greatest thing out there, but the minimum requirements for most games are pretty pedestrian, with extra bells and whistles if you have something better on your desk. Requiring a reasonably snazzy machine before you say go is a bold choice, but also somewhat risky since they’re potentially missing out on a bunch of potential customers who don’t meet the minimum. Is this the harbinger of high-end games to come, or a decision they’ll regret later? Well, they’ve sold 2.5 million copies of the console version, so maybe they’re just not so worried about those few extra customers.

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THQ buys Big Huge Games

Timonium-based Big Huge Games, makers of Age of Empires III and the Rise of Nations/Rise of Legends series, announced on January 15th that they’re being acquired by games publishing powerhouse THQ.

According to the press release, Big Huge Games, with all 100 employees, will become a wholly owned subsidiary of THQ, presumably staying at their current location in Maryland. They had published some games with Microsoft, but were trying to branch out into other platforms. Since publication and distribution are such a critical component in the success of a game, this is probably a good thing for reaching those platforms. It will certainly be interesting to see what changes, if any, result.

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Reassuring Parents about Game Degrees

I almost missed it with the holidays and all, but game career site gamecareerguide.com had an interesting article at the end of last month entitled “Reassuring Parents about Game Degrees” by Andrew Tuson, who heads the Department of Computing at City University London. He makes a bunch of great points, all of which apply at least as much, if not more, for programs on this side of the pond. In particular:

• “Are there jobs…” - He mentions jobs in the UK, but the industry is clearly booming in the US, and a number of the major Baltimore area game companies have been growing.
• “How can a degree help…” - I agree with his points 100%. There are plenty of examples of people working in the industry who don’t have a game-focused degree, but we’ve talked to lots of game developers, and they all agree. They are desperate for skilled people. Anyone can learn to play a game without formal training, but only a select few can learn game development without formal training.
• “Will a game degree be recognized outside of the games industry” - We came to the same conclusion he does. A “game degree” may not mean much outside the games industry. A game-focused version of a regular degree (Computer Science or Art) can be your ticket into the games industry, but can also just be a fun way to get that regular degree that will be widely recognized.
• “Are game degrees a soft option” - Hardly! Ask any student taking an advanced graphics or AI or parallel programming class (Cell processing anyone?). Just be sure to ask them both if it’s easy, and if it’s fun!

GameCareerGuide is a great site, by the way, run by the same people who do gamasutra, game developer magazine, and the annual Game Developers Conference. Well worth a look.

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Online virtual worlds for kids is big business

The New York Times has a story, Web Playgrounds of the Very Young, on the growth of online virtual worlds for young children. Our children live in the same environment as we do and learn mostly by watching what we do. So it’s not surprising that any significant new uses for the Internet and Web can be adapted to a form that kids will take to.

“Trying to duplicate the success of blockbuster Web sites like Club Penguin and Webkinz, children’s entertainment companies are greatly accelerating efforts to build virtual worlds for children. Media conglomerates in particular think these sites — part online role-playing game and part social scene — can deliver quick growth, help keep movie franchises alive and instill brand loyalty in a generation of new customers.
…
“Get ready for total inundation,” said Debra Aho Williamson, an analyst at the research firm eMarketer, who estimates that 20 million children will be members of a virtual world by 2011, up from 8.2 million today. (src)

The story gives an example, Disney’s Pixie Hollow, that is online in a rudimentary form and set to launch next summer.

“Behind the virtual world gravy train are fraying traditional business models. As growth engines like television syndication and movie DVD sales sputter or plateau — and the Internet disrupts entertainment distribution in general — Disney, Warner Brothers and Viacom see online games and social networking as a way to keep profits growing.
…
Still, the long-term appetite for the youth-oriented sites is unclear. Fads have always whipsawed the children’s toy market, and Web sites are no different, analysts warn. Parents could tire of paying the fees, while intense competition threatens to undercut the novelty. There are now at least 10 virtual worlds that involve caring for virtual pets. (src)

There are many concerns, of course — privacy and safety, exploitation of our children, promoting consumerism, raising couch potatoes, etc.

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