The numbers are in and May was the worst month for video game sales since 2006. Why did this occur, what does it mean for the future, and what does Carmine have to say about the whiners and nay-sayers? Read more to find out! When I read the article off of Yahoo about how the sales numbers for video games were down in May despite the huge presence of E3, I didn’t know whether I should laugh or go into a rage. It’s really not that difficult to understand. There are a few key factors that went into this dip. First of all, we’re still in the middle of a recession. It’s very difficult for parents to justify spending $30-$60 on a new game when the prices of food and gas are at their highest in decades. I don’t blame them, it’s tough for us too. Secondly, the list of significant games released in May was small. We had LA Noire, a very big yet still slightly obscure hit, and Brink, a mediocre game at best. These weren’t blockbuster games. And to make things even more difficult, why would a parent (or kid) spend their money on Brink when they could save up for any number of the huge titles being released in the coming months. Just take a look at the list of games we looked at during E3 (and a few we didn’t even get to like Battlefield 3). Anyone who tells me that their child was looking forward to Brink and LA Noire more than games like Bioshock: Infinite, Mass Effect 3, Gears of War 3, Battlefield 3, Modern Warfare 3, or any of the other long list of games scheduled to be released this year has their pants on fire and should immediately contact the local fire department. Thirdly, we can’t rule out the problems that consoles have been having. The sales for the Xbox 360 have been growing for 18 months now while sales for the PS3 and Wii have been falling. Just a brief glimpse at the past month should make the reasoning behind the PS3 and Wii’s sales numbers very obvious. Sony had to deal with a huge hacking issue for over a month which has significantly eroded consumer confidence in the Playstation Network. Even if you still believe that your information is safe in the hands of Sony (which it definitely is now), I highly doubt you were going out and purchasing any new equipment or online games for your PS3. This problem would especially impact a game like Brink, whose primary feature was its online gameplay. There’s no point buying an online game when you can’t play online. As for the Wii, the announcement of the Wii U will cause sales of the Wii (and Wii games) to plummet. Frankly I’m surprised the Wii is still selling at all. Why should consumers spend money on an already outdated system when the “latest and greatest” is coming down the tubes into homes. Add to that the total confusion as to what the Wii U is, who it’s targeting, what games are being released for it, and why the supposedly family-friendly Wii is getting an almost purely single-player makeover and you have a recipe for disaster for the Wii. “But Carmine, doesn’t the price of games affect the sales numbers as well?” Yes and no. Seriously guys, if you don’t want to pay $60 for a game do what the rest of us do and wait until the price comes down. It may be a few months or a few years, but you should be paying exactly how much you think that game is worth. I still haven’t paid for Modern Warfare 2 yet because I believe that it’s not worth anything more than $30 (it’s still selling right now for about $50 online). On the other hand, I pre-ordered the Gears of War 3 Epic Edition for a hefty sum (well over $100) because I believe that Gears 3 is more than worth the price that I pay (and getting the extra bonuses is awesome too). Of course, that doesn’t address whether or not $60 is actually a fair price to charge for a new game. So allow me to put it in perspective. If development costs for a game are $1 million (large, but not an absurd amount considering The Old Republic’s budget is over $100 million), then in order to break even developers would have to sell 166,667 copies of the game (assuming the developers took home all $60, which they don’t). That sounds like an easy amount considering how quickly games like Black Ops broke their 1 million sales mark, but consider how much of a gamble it is for development companies to put up $1 million in hopes that a game would become profitable. How many games were created that eventually ruined video game companies because of the low returns? Considering the amount of time, energy, and funding is required to create a modern, competitive AAA video game it’s no surprise that game companies are looking for more ways to try and make a profit. They are a business, after all, not a charity. That being said, I should probably actually answer the question. Yes, the price of games does affect the number of games that are sold, especially during a recession. Should $60 keep you from buying the best games on the market purely on principle? It depends. You should spend how much you think each game is worth. If you think a development company put enough time, energy, effort, and funding into the development of a game and as a result that game leads to an extremely enjoyable experience for you, then pony up the $60. If not, wait for the price to go down or don’t buy the game at all. “But Carmine, I don’t think the video game industry should require me to have a constant internet connection to play a game! I don’t want them gathering information about me, that’s an invasion of privacy!” Alright here’s the deal: Most games don’t require you to have a constant internet connection. They may require you to have an internet connection the first time you play the game, but that’s so that they can verify that you’re actually using a copy of the game that you bought, not one that was pirated. Piracy is the one thing that causes the video game industry to shake in its boots, so the “connect to the internet to verify your account” thing is just a way for the developers and producers to make sure they get paid. That being said, sometimes development companies take things too far. There have definitely been some games that require a constant internet connection in order to keep playing, even if you’re not playing online. I agree, that’s a bit absurd. If the internet goes out I want to be able to keep playing games offline. So if I’ve got a problem like that, I simply refuse to buy the game (or buy it for a different console). No one is making you purchase a game and there have been plenty of games that have tanked because of the absurd anti-piracy measures placed on the consumer’s back (i.e. Spore). You have the power to cast your vote of no-confidence by refusing to purchase the game. It’s that simple. As for the “invasion of privacy” argument, do you really think game producers or console manufacturers care what kind of underwear your purchase or where you go for dinner on Thursday nights? No, they care about what kind of video games you purchase, how often you play, and at what times of the day you play most. You are not an individual to them, you’re a statistic, a number, a part of the greater whole. You as an individual are meaningless to them, you as a part of a collective are meaningful. Why do game development companies want to find out more information about you? Because they want to sell you better products! I do the same thing with my friends all the time. I see that they’ve bought great games like Baldur’s Gate, Neverwinter Nights, and Dragon Age, so I ask them “Have you tried Knights of the Old Republic?” I analyze their purchasing patterns and give them suggestions as to what they might enjoy. It’s not an uncommon idea. If you don’t want to spend $60 on a game, don’t. The game industry will survive.
1 Comment
10/9/2012 10:54:09 pm
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The Legendary Carmine
Andrew Clayton (a.k.a. The Legendary Carmine) is SSG's Executive Editor. He toils at the stone to make sure this site brings its readers valuable content on a daily basis. Like what we do? Want to see more? Donate to the site using the button below!
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