Where is the video game industry headed?

Video games are a big part of pop culture. Game franchises like Call of Duty and the Madden Football series are massively popular, dominating headlines, sales and players’ time every year when the latest version of the game is released. However, with rising production costs, lagging sales and new distribution becoming available, the entire industry could be looking to change its business plan.

Sales of video games and consoles fell by 20 percent in July compared to returns during the same month last year. Overall, game and hardware developers have seen their sales drop by a third. Companies are now looking at new models to better engage gamers and get them interested in new products.

With mobile and social games that are ad-supported or have in-game transactions finding a foothold in the field, developers are starting to look into those methods as possible ways to reinvigorate sales. It has been widely observed that games like these are much cheaper to produce and because they appeal to a broader audience, they have a much wider profit margin.

Additionally the expansion pack, a fixture in the gaming industry, could actually lead to the biggest change: downloading games. Major developers like Activision have noted that they have seen large gains posted from the additional downloadable content gamers buy online. Some executives think that as internet speeds improve and computers become more powerful, entire games will be delivered in this fashion.

Gaming companies are trying to appeal to customers who want to receive games cheaply and quickly. It would appear that regardless of which direction is chosen, the entire industry is on the verge of change.

Do you prefer to buy physical copies of video games, download them or play mobile games?

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2 Responses to Where is the video game industry headed?

  1. Justin September 15, 2012 at 10:54 am #

    I prefer a physical copy. If anyone gets hacked you might lose the digital. But you always have the physical.

  2. Aedan Quinn September 17, 2012 at 4:50 am #

    Personally, I like to have a phisical copy of the disk, just incase something was to happen to my hard drive. However, for small/cheap games, such as minecraft for Xbox, downloading the game is fine, due to the fact that the game does not not take up too much memory.

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