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.

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RedMageOh hey, a news station is trying to scapegoat gaming. That takes me back. https://twitter.com/GamingAnarchist/status/63754361236507443208/29/2015 - 1:40pm
Big PermA link to TB twitter with Matt Lees in the replies - https://twitter.com/Totalbiscuit/status/52528604482949939208/29/2015 - 12:16pm
Brad GlasgowWhy would he say the company lies about getting abuse? Oh, because people don't abuse GG?08/29/2015 - 10:38am
Big PermBrad - Matt Lees was also quick to say the company "Gamers Gate" lies about getting abusive messages thinking they were an official GG channel08/29/2015 - 9:11am
Goth_SkunkMGSV: The Phantom Integrity - A Rant by RazörFist. (NSFW on account of language). RazörFist discusses the latest batch of unethical journalist conduct, with a caveat. - http://ow.ly/RwXYT08/29/2015 - 7:10am
Goth_Skunk@Brad: I can.08/29/2015 - 6:13am
Goth_SkunkI assume "Stacy" is a pseudonym. After reading what she went through, I would not be one bit surprised if it is.08/29/2015 - 6:13am
Goth_SkunkA Year of #GamerGate: From Neutral To Anti To Neutral To Pro by "Stacy" - http://ow.ly/RwVeT08/29/2015 - 6:12am
Brad GlasgowI can't believe Matt Lees deleted his positive review of Ethan Carter because Chmielarz is sympathetic to GG.08/29/2015 - 5:30am
Goth_SkunkA GameDev's Year With #GG: The Good, The Bad, and The Ugly by Adrian Chmielarz - http://ow.ly/RwSCd08/29/2015 - 5:18am
Goth_SkunkDespite not being a fan of fighting games I had to check out that R Mika trailer. Loved it. Still won't buy the game though, on account of Isuckatstreetfighteritis.08/29/2015 - 2:42am
MechaCrashI use a Dynex DX-840 headset, but it's discontinued. :( I wanted a mono headset so I could keep the other ear free for my speakers, but it has the bonus of being very light and comfortable, so you don't notice it.08/29/2015 - 12:41am
Big PermSora - I was just having a slow day at work earlier. Now I'm home with vidya!08/28/2015 - 7:54pm
ZippyDSMleeSora-Chan: Blender is easy compared to 3Dmax :P08/28/2015 - 6:51pm
Sora-Chantime to take up a hobby? maybe messing around in GIMP to make wallpapers? use qCAD to design somethin? open Blender and stare at it for a couple hours trying to figure what does what?08/28/2015 - 6:41pm
Big PermAlso, yes. I've been spamming the shoutbox. I don't have much going on today, don't judge me08/28/2015 - 3:25pm
Big PermThanks, but yeah. Not sure I wanna drop that kind of cash :P I don't even mind the sound quality of my krakens, it just hurts to wear em after a couple hours.08/28/2015 - 3:25pm
Sora-Chan@Big Perm: I'm a bit of a fan of the Omega Recon3D headset from SoundBlaster. Though it is a bit expensive.08/28/2015 - 2:36pm
Big PermI actually need to look into a new headset. I have those green razer krakens and I would not suggest them. Though maybe they're better for people without glasses08/28/2015 - 11:32am
Big PermI've never heard if Apple was dominant in Japan.08/28/2015 - 11:25am

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