How the economy will affect Video games/Movies

[melbufrauma]

didn't know if this should go under here or Bentertainment geekly so im just posting here:

Since the economy is slowly getting worse and worse, i was wondering what people think will happen to our games and movies we love? I see it going either way, either they will cut staffs and poor economy = poor games or they will spend more making sure that it is going to be a hit and pumping more energy and stuff in it trying to sell more copies.

[tyven]

i dont know much about the gaming industry but i feel like a hear about developers getting shut down on like a weekly basis.

[archibaldcrane]

Movies are fine. Hollywood just had it's first ever 1 billion dollar January box office.

That is not to say that people aren't getting laid off though - the industry is taking the opportunity to cut fat and blame the economy. The only issue the film industry is facing is having to spread its big films out more because there are fewer coming out at the moment because of the impact of the writers strike on development cycles. A number of films that were supposed to be Xmas movies (that Jamie Fox/RDJr. cello one comes to mind, and I think a Harry Potter film?) got pushed into the spring or summer because the studio's release schedule had holes to fill from the strike.

[Khamsin]

Well, on the plus side, even if small-but-good developers get shut down for now, the minds behind the good, innovative games will be picked up in a heartbeat, either by larger developers or by other small-but-good developers when the economy picks up again.

[Guitarman]

GI reported in this month's issue nintendo and sony are laying off part of their workforce, not a large chunk but some. So far the game industry seems unaffected. The biggest problem right now is EA devouring every development studio they come across.

[Kuya]

The biggest problem right now is EA devouring every development studio they come across.

Oh god.

[melbufrauma]

i read an article saying that game sales are up 13% compared the the point in time last year, but i know it will effect them sometime

[SDSD]

This would probably be an informative read.

News of development-studio closings and layoffs are being reported around the world. And while publishers focus on internal cuts, many independent developers have closed outright. Such gloom, in a normally raucous industry, has set the talking heads, bloggers, and trade press to a quick conclusion: Losses and layoffs are the direct result of an economic crisis (on the premise that "things are tough all over").

But that idea, which makes intuitive sense, is completely at odds with recent sales numbers. In reality, video games are selling better than ever. The retailer GameStop announced sales of nearly $3 billion worth of games, hardware, and accessories during the nine weeks around the 2008 holidays—22 percent more than during Christmas 2007.

According to the research firm Media Control GfK, game software accounted for more than half of global packaged entertainment sales in 2008, beating DVD sales for the first time. The firm pegs game sales at $32 billion worldwide. (The U.S. market accounts for around 45 percent of the world total.) The NPD Group, which tracks sales for the industry, also reports that game software sales were up 26 percent in 2008.

So how can publishers lose money amid such incredible sales and record growth? The answer is simple: They're spending more than they're bringing in. Game development budgets have ballooned, and publishers are reeling because they can't keep the costs under control.

[Kohan]

This isn't actually a new subject, but has been covered a variety of times in the past couple of years. The gaming industry is seemingly virtually immune to the economic recession. Although a large amount of studios closed during 2007 and 2008 in particular, many of them had either been idle for some time, or produced rows of stinkers before closing their doors.

[Devolver]

This isn't actually a new subject, but has been covered a variety of times in the past couple of years. The gaming industry is seemingly virtually immune to the economic recession.

This. I mean think of who goes to the movie theaters on a regular basis, and what demographic supports the gaming industry. People feeling the recession is wall-street and company big wigs (for right now), not the pimpled faced guy at Burger King serving up your combos.

So i dont expect for the movie/gaming industry to take a big hit, if they even take one at all

[Fhloston]

This. I mean think of who goes to the movie theaters on a regular basis, and what demographic supports the gaming industry. People feeling the recession is wall-street and company big wigs (for right now), not the pimpled faced guy at Burger King serving up your combos.

So i dont expect for the movie/gaming industry to take a big hit, if they even take one at all

Exactly. Many will seek movies and gaming as an inexpensive alternative to entertainment, especially these days. I'm willing to bet MMO's are becoming even more popular because of this.

On a side note, fuck Burger King. They got my order wrong this morning...ordered a tender crisp sammich and got a triple whopper wtf.........

[Kaslo]

During the great depression movies actually flourished, mainly due to people trying to escape the trying times. If that's any indication movies and video games will be ok as they have always been escapes from the real world.

[Jaybar]

Maybe some of the ridiculously overpriced theatres might lower their prices...oh who am I kidding.

[Sol-Blackguy]

During the great depression movies actually flourished, mainly due to people trying to escape the trying times. If that's any indication movies and video games will be ok as they have always been escapes from the real world.

^This

I would suspect... well, hope that games/movies will start to get a little cheaper just to keep us all happy.

[Mayareira]

Thank you and good bye

AgeCommunity.com will continue to be up and running to help our fans and give them a place to hang out.

All of us here at Ensemble Studios wish to thank you for all of the good years we have had together. We have enjoyed making games for you and playing them with you.

"Good luck" and "have fun" have always been the four small words that we say before a game starts. We want to wish all of you good luck and have fun one last time.

1/29/09

And there goes Ensemble Studios.

[Kiarax]

Thank you and good bye

AgeCommunity.com will continue to be up and running to help our fans and give them a place to hang out.

All of us here at Ensemble Studios wish to thank you for all of the good years we have had together. We have enjoyed making games for you and playing them with you.

"Good luck" and "have fun" have always been the four small words that we say before a game starts. We want to wish all of you good luck and have fun one last time.

1/29/09

And there goes Ensemble Studios.

Well that's unexpected, they're about to make a killing with Halo Wars.

[Kohan]

It was actually announced last year, not this. The employees have already made two -- possibly three -- new studios. They were only staying around as Ensemble until "Halo Wars" was completed.

Though the "Age of Empires" series was good quality, it hasn't been anywhere near a million seller type for years, and that's all they ever made. Their breaking up is not too surprising, as one trick ponies have to be lucky to fare well.

[Blabj]

The games industry is so affluent because, if you look at their primary target audience, 12-25 males, these are typically individuals with little responsibilities and therefore disposable income. As long you market products well (hype, multi-media based advertising campaign, sponsorships and events) then you can pretty much guarantee to atleast offset your development and marketing costs, if not turn a massive profit.

You could say that they are playing safe at the moment inside the industry, just look at how many new and original games are coming out... Sticking to their guns, and furthering franchises which have proven popular is always going to be a safe marketing strategy, as long as the characters are still of interest (or in nintendo & sega's case, even if they aren't)

The fact that nintendo branched into a (previously non-existant) family orientated market does show that the industry can evolve, and that companies can change their strategy to remain afloat in the long run, they just need to stop resting on their laurels and making "safe bets".

[Darus Grey]

The games industry is so affluent because, if you look at their primary target audience, 12-25 males, these are typically individuals with little responsibilities and therefore disposable income.

Sorry, but that's just a stereo-type.

26% of gamers are over 50, 49% are 19-49, and the average age is 33, and going up every year. The fact is that the "gamer" demographic is made up primarily of working adults already 5-10yrs into their careers.

[Blabj]

This just in, new games target market is 30 something males, bored with work, too poor to fund a real hobby and looking for an escape from their mid-life crises.