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High Costs plague the Gaming Industry

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Halo. Madden. Grand Theft Auto. Call of Duty.

All of the major gaming franchises such as the ones above and several others have enjoyed enormous success, combining to sell millions of copies. Although certain game titles have enjoyed such immense popularity (and it has shown in the sales figures), this is not necessarily indicative of the state and health of the overall video game industry.

Home console sales fell 13% this year, while big-time publisher E.A. says it may have to shed 1,500 jobs after posting a 351 million dollar loss last quarters, and profits at Nintendo fell 52% in the first six months of 2009.

Experts have attributed this decline in business to several factors, including the emergence of free,simple games on mediums such as Facebook, Myspace, and even Cell Phones. Consumers seem more and more unwilling to shell out $60 per video game title, even though the industry is relying on its major franchises to resurrect struggling companies. Experts also mention that companies are struggling to get their product into the hands of their consumers since less and less people have shown a tendency to want to travel to brick-and-mortal places such as a video game or computer store. Innovations such a downloads directly to a console are all being developed and worked on.

http://www.usatoday.com/tech/gaming/2009-11-25-vidgames25_CV_N.htm

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Written by philipterrigno

November 28, 2009 at 7:27 pm

Posted in Uncategorized

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