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Games outsold DVD and Blu-ray last year

Games outsold DVD and Blu-ray last year

The continued rise in videogame sales is largely attributed to the success of the Nintendo Wii and DS.

According to sales figures from Media Control GfK International, the video games industry managed to outsell both DVD and Blu-ray combined last year thanks to a huge growth in the format.

The sales figures show that while DVD and Blu-ray sales dropped by six percent last year, videogames grew by a staggering 20 percent and grew a lead over movie formats of more than £1.5 billion GBP.

According to the analysts at Media Control a huge amount of this growth comes down to the popularity of the Nintendo DS and Wii platforms, says GI.biz.

The continued popularity of the DS and Wii is expected to introduce yet more people to gaming and drive sales in the industry ever upwards. Media Control predicts that by the end of this year game sales will account for more than 57 percent of all packaged media sales, which is an increase of more than four percent on last year.

Software sales themselves are expected to grow by another 12 percent in the next 12 months, while the decline in DVD and Blu-ray is set to accelerate.

The sales figures fit well with often heard notion that the videogame industry as a whole may prove largely resilient to the economic downturn, thanks to the increased longevity and replayability of games over other forms of entertainment.

Have your spending habits changed at all over the last 12 months? Let us know if they have or not in the forums.

15 Comments

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Bauul 27th January 2009, 13:12 Quote
And that doesn't include digital distribution. Damn isn't piracy having a terrible effect on the market?
yakyb 27th January 2009, 13:50 Quote
but it also doesnt include Cinema Viewings

whats the cost of making a movie vs making a Game surely a game is like 10x cheaper
Bladestorm 27th January 2009, 14:38 Quote
Quote:
Originally Posted by yakyb
but it also doesnt include Cinema Viewings

whats the cost of making a movie vs making a Game surely a game is like 10x cheaper

It really depends, you can get extremes in both industries.

In the film industry some films are made on cheap digital gear in people's spare time or by huge budget studio productions.

In the games industry you can have games made by small indie game development studios with a handfull of staff and six months time or by big devs that might have 200-300 highly skilled (and generally decently paid) professionals working for four years.
UrbanMarine 27th January 2009, 14:40 Quote
Piracy :: cough ::
Psytek 27th January 2009, 15:01 Quote
Is this units sold or revenue, because if its revenue 1 game = ~4DVDs, which is hardly a useful comparison.
If its units - holy hell I'll be shocked.
TomH 27th January 2009, 15:06 Quote
Quote:
Originally Posted by Psytek
Is this units sold or revenue, because if its revenue 1 game = ~4DVDs, which is hardly a useful comparison.
If its units - holy hell I'll be shocked.
Indeed. They do tend to cost a heck of a lot more..

I should imagine (from TFA's use of GBP) that it's revenue.
Bauul 27th January 2009, 15:29 Quote
It looks like it is in value. But to be honest, when comparing different industries, it'd be daft to use anything other than value. Cotton Wool buds, for example, sold over 72 billion units last year (according to QI), so much more than all entertainment media added together. But this is a stupid comparison as they are completely different products, with completely different monetary values. Likewise DVDs have a completely different monetary value than Games (as you say, 4x different), so comparing unit sales is again stupid.
perplekks45 27th January 2009, 16:01 Quote
Did the MPAA already sue anybody? This seems to show that soooo many people rather download the movie than buy the DVD, right? :|

Any numbers on PC alone? I think it might be interesting to see how dead PC gaming is. ;)
sagittary 27th January 2009, 17:33 Quote
I'm not so sure the gaming industry is more resistant but rather simply slow to react and thus in a long downturn, it would too get hit. After all, while games are more value for dollar for the gamers, the same can't be said for the developers and publishers. Gamers may be able to play games longer... but they may also be less inclined to buy games if they don't have the spare cash. Likewise, when a publisher has invested several million into a game that is near completion, it's usually more prudent to finish the game and release it... even if the development team itself will be fired at the end of the development cycle. And since games take a year or more to release, less projects are started and more are canceled mid-way. As well, since work can sometimes be consolidated - trim QA from 50 to 20 - the visible product may not appear much different to the consumer.

If any part of the video game industry is resistant, it's serious games that already have their money given or granted to them or the smaller studios or projects that are working short cycles with small teams (and possibly second jobs). Only the larger studios with existing ample money to help weather the downturn (or entice people to remain confident in them) can afford to hold tight for a little.
yakyb 27th January 2009, 22:16 Quote
yeah request for bit could you actually find out what the average cost of development is for games against income

you could do an article and base it around something like hale life 2, the latest Fifa reincarnation and something like darwinia

just to compare the different spectrum of development styles
BurningFeetMan 28th January 2009, 01:50 Quote
Whoa, games out sold DVD's & Bluray films in 2008?

Wow, just wow.

How did they compare against toaster sales, or winscreen wiper sales? ZOMG, I wonder if they outsold Coke & PEPSI!

What other industries can we compare next to each other? How about motor bikes compared with push bikes?
perplekks45 28th January 2009, 02:59 Quote
Quote:
Originally Posted by yakyb

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snip
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Seconded. I think this might be interesting allthough it sounds like a lot of work. Then again... it's your job! :p I have to admit I doubt this'll help a lot clarifying the whole situation. Does anybody have some numbers on how much movies cost in production?
CardJoe 28th January 2009, 07:27 Quote
I very much doubt that any company would just so easily hand over data to me, but I'll try and look into it today.
yakyb 28th January 2009, 08:31 Quote
Quote:
The average cost to make and market a major MPAA member company film was $106.6 million in 2007. This includes $70.8 million in negative costs and $35.9 million in marketing costs

From the MPAA
perplekks45 28th January 2009, 12:24 Quote
Let me just quote themovieblog.com:
Quote:
Remind me to spit in the face of any MPAA guy I ever hear whine or bitch about hard financial times in Hollywood or how Piracy is sinking them.
That was after rumors appeared Depp would get $75m for Pirates 4. Seeing the average budget of a movie is >$100m I can only agree with them.
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