A surprise: Video Games $$$ decline
As someone who has never played a video game and who has no interest interest in doing, I was surprised to read the following article in The Wrap this morning. Surprised because I assumed that has the technology grew more and more technology video games' hold on the public would become indomitable. Will they rebound?
From The Wrap:
Video Game-Over? Industry Sales Plunge, While Innovation Beckons
Games saw a 9 percent sales plunge in '09, January was worse - some blame a music genre that has peaked
By Dominic Patten
Published: February 15, 2010
After a decade of growth and two consecutive years of record-breaking grosses, sales of video games – which at first seemed immune to the Great Recession – are finally falling.
More like avalanching, actually.
A host of advances and all-new revenue streams are on the horizon, some coming as early as this year, that industry insiders hope could turn things around.
But the beginning of 2010 delivered the industry a body blow of economic reality.
Game sales dropped nearly 9 percent in 2009 from the previous year, dipping to $20.2 billion from $22.11 billion, according to digital entertainment market researchers NPD Group. Then a stellar December – a record sales month, thanks to holiday spending – seemed to be a sign that things were rebounding quickly.
Last month’s sales were off 13 percent from January 2009, according to the NPD Group.
While there was some good news in accessory and controllers sales being up 2 percent, software declined 12 percent and hardware sales took devastating hit, sliding 21 percent from a year before.
Last week Electronic Arts, one of the industry’s largest game publishers, saw share prices hit hard. And layoffs have come to the seemingly untouchable industry: after tough third quarter declines, Activision announced that hundreds of employees would be laid off, and Los Angeles-based game studio Luxoflux would close.