Nintendo warns that game industry is boring consumers

[famousringo]

Khuutra said:

JPL78 said:

Khuutra, so why are non-gaming consumers even a concern then?  The industry is already the biggest entertaiment industry in the world. I'm just not following the logic of this thing.  Maybe you can help me understand.  All I've ever heard lately is of the amazing growth of games from things like the Wii and Facebook games like Farmville.  Its all very contradictory to what he is saying now.

The game industry needs to continue to grow. 2010's revenue will probably be lower, industry-wide, than 2009's. That trend neeeds to be reversed as soon as possible. That is what Iwata is saying.

To elaborate on this, markets either grow or they contract. Whether they are growing or contracting affects investment in a reinforcing cycle. A growing market attracts more investment (more games, more variety of games, bigger budget games), so the market continues to grow.  A contracting market scares off investment (fewer games, less variety, smaller budgets), so the market continues to contract.

The danger that is to be avoided is that consumer disinterest will result in a collapse in investment that will reduce the quality and variety of games that gamers like us can enjoy, thereby alienating more customers because their niche isn't being filled or because Call of Duty 17 wasn't as thrilling as Call of Duty 16.

So, like any other capitalist system, the gaming market seeks perpetual growth.