Games v. Movies: The Numbers

December 28, 2010 -

Update: We mistakenly attributed the post in the story below to David Bordwell. It was actually written by Kristen Thompson. Corrected story below.

Kristin Thompson picks apart the numbers in the November 15 issue of Newsweek, which compares sales of the movie industry with the video game industry. The article appears in "Back Story," the one-page article that comes at the end of each issue. The article, "How Super Is Mario?," puts a brave face on the video game industry. We have heard analysts and research firms say that the video game industry has surpassed movies.

Thompson dissects the numbers in the article and finds that the, while the video game industry is catching up to the movie industry, it still has a long ways to go:

"But in fact the Newsweek analysis just repeats the conventional wisdom it claims to overturn and makes the same old invalid comparison that entertainment-business journalism has been making since video games started making real money. A cursory glance at the pie charts makes it seem as if the gaming industry is not all that far behind films: the games total is $60.6 billion vs. $77.1 billion for movies. But let’s take a glance that isn’t cursory."

However, here is where the truth comes out. If you take hardware and accessory sales out of that impressive number and look solely at software - video games don't come anywhere near the levels that movies are currently at:

"The figure includes the consoles and other equipment people buy in order to play games. But the pie chart of movie-industry income doesn’t include hardware. What would happen if the sales of theater and home projectors, DVD and Blu-ray Players, iTouches, and all the other gadgets used to watch movies were factored into the film-income figures? As we know, there have been a lot of digital theater projectors and 3D systems sold in recent years, not to mention all those portable media players. The games industry would fall farther behind than it already is. (And let’s not forget that most of those gaming consoles also play movies, so an indeterminate part of their income should go into the movies column. Since last January, the Wii even comes with a Netflix connection installed.)"

"Consoles are listed at $18.1 billion and accessories at $6.6. Take them away, and games software brought in $35.9 billion in the period covered (January 1, 2008 to September 30, 2010). There’s nothing to take away from the film pie, since it consists entirely of software rentals and sales. So film still brings in more than twice as much, $35.9 billion vs. $77.1. DVD and Blu-ray sales, at $34.2 billion, make nearly as much as all games."

You can read the rest of the post here. Thanks Gus Mastrapa.

Posted in

 
Forgot your password?
Username :
Password :

Poll

Will the FCC preempt state laws that limit municipal broadband services?:

Shout box

You're not permitted to post shouts.
PHX CorpI'm going to do a test stream later today, if anyone is intrested07/31/2014 - 2:40pm
Andrew EisenYes, I'm such a big Nintendo dork that I read Nintendo's quarterly financial reports.07/31/2014 - 2:09pm
Andrew EisenCool tidbit - Mario Kart 8 sales account for more than half of total Wii U software sales for the last quarter even though it was only available for the last third.07/31/2014 - 2:09pm
Andrew EisenStill a pretty cool promotion. Unfortunately for me, I'm not interested in purchasing Mario Kart 8 and I already owned or didn't want any of the free games on offer.07/31/2014 - 1:43pm
Andrew EisenInteresting that EU had 10 games to choose from while North America only had four.07/31/2014 - 1:41pm
MaskedPixelanteIt certainly worked, I probably would never have bought Mario Kart 8 if it didn't come with a free copy of Wind Waker HD.07/31/2014 - 1:14pm
Andrew EisenI imagine will see similar promotions like "Buy Mario Kart 8 get a download code for one of these specific games" but almost certainly not for all of its (however you would define) biggest releases.07/31/2014 - 11:24am
MaskedPixelanteI wonder if Nintendo is going to be doing "buy one get one free" promos for all their biggest releases going forward.07/31/2014 - 10:48am
MaskedPixelantehttp://www.mcvuk.com/news/read/special-report-retail-revolt-over-pc-code-strippers/013614007/31/2014 - 8:27am
ZippyDSMleeWouldn't they be able to afford and get done in a timely manner a general gba emluator for the 3DS? It seems to me if they want to make money off sales they need to do it.07/31/2014 - 7:25am
Sora-ChanAmbassador program, that's what I was looking for. Anyway the other games that have been made no longer exclusive to the early adopters got updates in their software. It'll only be a matter of time more than likely for the GBA to get the same treatment.07/31/2014 - 5:35am
Sora-ChanI might be naming it incorrectly when I say "founder" i mean the program for earlier adopters.07/31/2014 - 5:34am
Sora-Chanthe 3DS's GBA emulator was a rush job due to the founder program. No other GBA titles have been released on the 3DS yet. If/When they do get around to it, they'll more than likely update the emulation software.07/31/2014 - 5:32am
Zenemulator...it's not just a slap job that makes "some" work..they do it for each which is why they work so well. I would rather have the quality over just a slap job.07/30/2014 - 5:48pm
ZenMatthew there is a difference between "worked" and "accurate". You play the Nintendo VC titles they play as damn close to the original as possible. The PSP would just run them as best they could, issues and all. And Masked...EACH VC title has their own07/30/2014 - 5:48pm
MaskedPixelanteOnce again, the 3DS already HAS a GBA emulator, it just can't run at the same time as the 3DS OS.07/30/2014 - 4:54pm
Matthew Wilsonyou cant street pass in ds mode ether, and if moders can make a gba emulator that runs very well on the psp as I understand it. you are telling me that Nintendo devs are not as good as moders?07/30/2014 - 4:49pm
Zenperformance. Halo 1 and 2 worked great because they actually did custom work on each of them...just like Nintendo does now lol07/30/2014 - 4:08pm
Zenexisting hardware while the GBA has to be emulated completely. Same reason the 360 couldn't run most Original Xbox games correctly, or had issues because they just did "blanket approach" for their emulation which led to game killing bugs or horrible07/30/2014 - 4:07pm
ZenSora/Matthew: It's not just Miiverse, but the whole idea of streetpass and things like that would be affected if the OS is not running. And just because a 3DS game can be downloaded and run does not mean that GBA can as easily. Those 3DS games use the07/30/2014 - 4:06pm
 

Be Heard - Contact Your Politician