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Index » Blogs
Bad Economy, Big Bucks for Games Industry (Editorial)
Posted by SuperGuido, 3 days ago Dec 31, 1969 19:00

The global economy is in the crapper. Millions have lost their jobs, some their homes and more. And yet, the games industry grows. 11% worldwide last year.  People are turning to games as a form of entertainment with high value and low cost when compared to other forms like concerts and movies.

Meanwhile, the gaming industry seems bent on bleeding gamers out of every possible cent. Charging for map packs, putting out incomplete or problematic products, over-pricing or poorly pricing products, and making gamers pay twice for stuff (see my last blog, Far Cry 2 discussion, FIFA 09 Ultimate Team problems, Jim Cook's rant on EA/Hasbro and the recent Guitar Hero Smash Hits news).

So what's to be done? Sure one might attempt to organize a boycott of products, but to truly put a dent in their bottom line and send a message it would need millions supporting it. And surely the haves won't curtail their spending or adjust their entertainment requirements to help the have nots... Maybe we could attempt to ask the industry to charge less or not at all for some products. I can't see that going over very well.

Of course they would come back with 'it's all optional and not necessary for the initial gameplay.' It's true, it's not necessary. Some of it is additional. But when a game doesn't function properly, should we be expected to remain quiet? When they take content we already own and resell it to us instead of finding a way to work  around that, should we sit idly by? Should we pay for things that we might be able to get for free, or that we used to?

The games industry has its problems too, I agree. There have been studios that have closed, people have lost their jobs and losses are mounting in the millions. But why is that? If their industry is expanding and annual revenue is growing, shouldn't they be making more money? It seems like it might be a case of misplaced or misspent money. THQ just managed to knock off $220 million for 2010 which means it was money being spent poorly or improperly?

I am not asking the game companies to give away the fruits of their labor for nothing. But perhaps take a look at your pricing and the economy. Would slashing some prices really be such a bad thing? Don't you think that the customer loyalty you would garner from such a move woudl pay off further down the road as the economy takes that long climb back towards health and disposable income rises all around?

There is another upside to the whole bad economy thing. Thousands in the industry are being laid off. That's not the good part. The good part is that many of them are starting up indie studios, taking bigger chances with their game designs and giving the industry back the diversity it seemed to be losing as more and more studios were gobbled up by the major players.

It's like the cycle of the industry - Giant corps rule the land, have problems finding food, begin to die out...new smaller studios spring up from the ashes, begin to create great games, then get bought up by the giants and the cycle begins anew.

Either way, it's a great time to be a gamer, even if your financial situation is unstable or unpredictable. Now more than every you have a choice in games like never before. Sure there are problems, there always will be. But it truly is the age of Video Games. They are rapidly becoming the dominant form of entertainment around the world.

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