Thursday, March 1, 2012

State of the Video Game Industry

Hello once again, faithful SNSG subscribers! I bring to you an article I’ve wanted to write for a long time, but could never find the time to write. I present to you, the State of the Video Game Industry, a collection of my personal ramblings and disconnected thoughts.

After a frenzied five-minute Google research session, I feel that I have gathered enough statistics to make it seem like actual research was done. As one will soon realize, I do not cite any sources. Okay, so let’s get right into it then!

Industry Profile

As an economics major, I’ve spent the last three years indoctrinated in the fine arts of graph memorization and line manipulation. I also read boring things. The common denominator in this array of monotony is the use of mundane language. Things such as “Industry Profile” seem to crop up a lot.

But anyway, the video game industry is absolutely thriving. Since 2004, the total value of the industry has increased from $10.3 Billion (With a B!) to $70+ Billion today. In terms of gross revenue, the video game industry nearly matched the movie industry. I believe a number of factors are responsible for this rise.

Contrary to popular belief, the average gamer is not a 16-year old COD player who sends nonsensical messages through Xbox Live when he gets knifed. (Though it might sometimes seem that way). In fact, the average gamer is 34 years old. If you’re playing games at the age of 34, chances are you’ve been gaming for a long time. Also, chances are slim that you are married. Thus, unmarried 34-year olds, who are (hopefully) employed, have the resources to fund their gaming enterprises. An aging gamer demographic helps drive growth.

**Side note: I have a strong suspicion that someone in my Age of Empires clan is 34 and lives out of his car, but that’s for another blog entry. **

With the emergence of motion-control based gaming and mobile gaming, a ton of new demographics have been roped into the world gaming. The number of annoying teenagers who can’t dance, but wave their arms animatedly in front of a Kinect camera is staggering. Same goes for the number of obese individuals who treat the Wii Fit like a reincarnation of the South Beach Diet, and adhere to it faithfully. Then, there are always the charming elderly technophiles who emulate their favorite real-world activities in video game form. And of course, everyone plays Angry Birds.

The bottom line is that in the past decade, gaming has evolved to include everyone. 40% of all gamers are girls(!), octogenarians are getting involved, and games are even being seen as a supplement to a healthy diet! I have heard that smart phones now support vast gaming libraries. I have only experienced this vicariously, however, since my phone is not even capable of taking pictures. Even Facebook is not safe from the vicious onslaught of gaming. I just dropped a 70-point word on Words with Friends the other day, and my friend has a rather immaculate garden on Farmville.

So, is this a good thing?

The short answer is yes. The impact that video games has on job creation in the technology sector is huge. Let me tell you, after taking a computer science class, I thought I’d have the skills to make Metroid Prime 4. Turns out I can only make a rudimentary pong game that can’t keep score. Awesome! The point is, the people making these games are some of the smartest minds out there, period. I am in continuous awe of how games continue to evolve and push the boundaries of possibility. The industry standard today was a technological marvel a decade ago.

The video game industry employs people like him!


Furthermore, a number of successful indie developers have cropped up that reinforce the idea of meritocracy in the gaming world. The idea that anyone with the right skills and mindset can capitalize on a good idea is pivotal for the success of this industry. The open source Android operating system has made it possible for 13-year olds to market top-selling games.


Disturbing Trends

But of course, not everything is without fault in the world of gaming. Here are some trends that I find particularly worrisome.

1. DLC - Downloadable Content. Picture this. The year is 2005. You go to Game Stop and make what you think is a sound investment. You purchase Shadow the Hedgehog for the GameCube. (Minutes into the game, you realize that you have made a terrible mistake, but that’s beside the point). You freely traverse the open non-linear game world *sarcasm*, but upon completing the first level, you are told that you must purchase level 2, in the form of DLC. The same pattern manifests itself for the next 10 levels. Since you have already made a flurry of bad decisions (beginning with the initial purchase of the game), you simply can’t stop. You go ahead and buy every level. At the end of the whole process, you are unsure whether or not you are having any fun at all.


This illustration is to DLC what the book 1984 is to democracy. I think that DLC is fine as long as it is reasonably priced and actually adds something of value to the overall gameplay experience. It is not fine if companies purposely condense a game, and then sell vital gameplay elements off at a premium. Mass Effect 3, what are you thinking?!

2. Motion Controls - With the Wii, we saw the introduction of the waggle as a core gameplay mechanic. How many shovel ware games were built off the premise that wildly gesticulating with our arms was crucial to the overall experience? Really, it wasn’t until Skyward Sword that I saw a game that made legitimate use of motion controls.

3. Used Games – I can’t believe that is even a problem in the first place. Rumor has it that the next Xbox is trying to find a way to ban the user from playing used games. It’s one thing to counter piracy, but what’s wrong with used games? Kiss your profits goodbye Microsoft!


The Last Word

In the end, games are about having fun. Graphical prowess, an orchestrated soundtrack, and a bevy of unique gameplay elements are nice, but mean nothing if you’re not having fun. Ultimately, it is this that drives the video game industry more than anything else.

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