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Forums - Gaming - Much Growth Left in the Gaming Industry There Is

Despite my Yoda like topic name, I don't think people have really realized what potential there is in the gaming industry.  Since 2005 we have seen extroardinary growth in the industry.  This kind of growth hasn't been seen since the NES and then PS1/GB time where the industry grew by more than 200%.  However, this industry is still small.

Let me present a case scenario.  Currently the fastest selling game ever in history, is the recently released Mario Kart Wii.  It has sold about 13.5 million copies since its release in late April.  Now there may be games where you can combine versions and get somewhere near that but this is the pinnacle of it.  However, just recently, the biggest DVD release of the year, The Dark Knight, opened to 13.5 million units in its OPENING WEEK across DVD and Blu-Ray.  So the fastest selling game of all time can only do what the fastest selling DVD does in one week.

http://www.videobusiness.com/article/CA6623618.html

Now of course there are reasons such as cost and how many DVD players there are out there but DVD players and Game machines compete in the same market.  They are both looking to have one, maybe 2, in a single household.  Obviously DVD household penetration is much higher than game consoels but consoles can achieve this.  We are already seeing the rise of the foreign markets outside of Japan, US, UK, and France who have typically been the largest markets.  More countries are starting to expand to the gaming industry as gaming becomes more mainstream.

Point is this growth is only the beginning.  All these companies have sought to grow the industry but they weren't talking about in just the countries where its already big.  With games like Nintendogs, Mario Kart, Halo, Grand Theft Auto, and Mario we are opening up markets once thought to be "worthless".  Markets where DVD players are in households. 

This is a chain reaction that could make gaming the largest entertainment business in the WORLD.  Give credit to whoever you want.  Whether it be Sony with the playstation brand, MS with Xlive, or Nintendo with the DS/Wii but gaming is MAINSTREAM now in the same sense of DVDs.  Game sections are becoming just as popular as the DVD sections in stores like Best Buy.  Developers are investing more and more into bringing games to as many countries as possible while game makers are releasing consoles EVERYWHERE. 

Awhile ago people like John Lucas talked of consoles selling 500 million and I thought they were crazy.  But if this expansion keeps continuing these publishers and console makers are going to hav eto start developing that many. 

This isn't any idealist bullshit.  Compare Europe/Other sales now to what it was 4 years ago and you'll see just how much that place has expanded.  This new awareness of mainstream gaming will continue to spread and maybe one day we will have some of the biggest games like Halo or Gran Turismo or Mario open to a 13.5 million.  Game consoles can have household penetration like DVD players.  We are on that course right now.  All that needs to be done is more and more marketing and advertising in those new regions and more awareness from publishers and console makers to ship more and more to all areas.  Up production because there is want around the world.  If all of this happens, gaming will reach its fullest potential. 

Gaming is no longer a child's game.  Gaming has become of the fastest expanding entertainment businesses in the world.  With so much room left to go, I can't wait to see how much farther it can expand.



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I no

I just hope your though is not clouded by the dark side XD



so your saying sonic and the dark knight will sell 13.5 million week 1?



End of 2009 Predictions (Set, January 1st 2009)

Wii- 72 million   3rd Year Peak, better slate of releases

360- 37 million   Should trend down slightly after 3rd year peak

PS3- 29 million  Sales should pick up next year, 3rd year peak and price cut

Nah let's hope not. There are only 2 things that could stop this growth though:

1. Lack of cost-efficient products
2. Lack of focus towards expansion

Nintendo knew this going into this generation and I think they've brought Sony and MS on board. Most developers are getting on board with the ideas, especially the Japanese developers who were the least excited about the idea. So it's looking this way.



bigjon said:
so your saying sonic and the dark knight will sell 13.5 million week 1?

 

Of course not.   No game right now can sell that much in an opening week.  At the most games on a single system are looking at about 4 million and on multiple about 5-5.5 million in one week.  But maybe in 10 years are so a series like Mario or Halo or Gran Turismo, the huge franchises can do that.

If this happens we are going to get to a point where selling a million doesn't mean anything.



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Good thread, Zucas.....do you think the so called "one console" future could speed up things?



Why do you think I say that Wii will pass the combined sales of the PS1, 2 and 3?

Its growth potential is monstrous



 

Predictions:Sales of Wii Fit will surpass the combined sales of the Grand Theft Auto franchiseLifetime sales of Wii will surpass the combined sales of the entire Playstation family of consoles by 12/31/2015 Wii hardware sales will surpass the total hardware sales of the PS2 by 12/31/2010 Wii will have 50% marketshare or more by the end of 2008 (I was wrong!!  It was a little over 48% only)Wii will surpass 45 Million in lifetime sales by the end of 2008 (I was wrong!!  Nintendo Financials showed it fell slightly short of 45 million shipped by end of 2008)Wii will surpass 80 Million in lifetime sales by the end of 2009 (I was wrong!! Wii didn't even get to 70 Million)

JGarret said:
Good thread, Zucas.....do you think the so called "one console" future could speed up things?

Actually I think that would worsen the scenario.  I mean there are numerous brands of DVDs around with significant market share.  Same thing will be with the game industry.  I actually think we could gain some competitors as 3 may not be enough.  Possibly companies like Apple coming into the industry.  Not to mention a lot more growth in the PC market of gaming which has an even better shot of reaching its fullest potential.  WoW is just the beginning. 

One console future I just don't think would help to expand the market as the market is viable to support 3 and 4.  Only one console might actually hurt this cause although I can't explain why.  I just think as this is obviously the expansion through capitalism, that competition will stay.

 



Avinash_Tyagi said:
Why do you think I say that Wii will pass the combined sales of the PS1, 2 and 3?

Its growth potential is monstrous

Haha I got to say I didn't see what you and John saw but yall saw the growth of the industry.  Now mine's a little more drawn out but I think in 10-15 years the gaming industry might be able to reach that potential.  And now just the Wii but future consoles from all makers.  It's going to have to be a combined effort.

And we are already seeing that.  I mean 2nd and 3rd place consoles have never sold as much as PS3 and 360 are selling.  2nd place handhelds have never even come close to what PSP is doing.  The market expansion is helping everyone.

 



Wow, That's good read. I agree, there's still grows in our industry, we never saw so many hardware sold at those prices. (I'm quoting Pachter, yes I know). And So quickly also.



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