US Video Game hardware spending by year. Source: Circana Retail Tracking Service
- Thread starter Gamernyc78
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OP
OP
2007, 2008 had some great casual / semi-casual games that really grew the audience.
Things like COD Modern Warfare exploding in popularity and its sequel. Guitar Hero, Rock Band and DJ Hero.
Then we had companies like Ubisoft with far more interesting output... games like Ghost Recon and Splinter Cell were more unique and less of the Ubi formula. EA was bringing Mass Effect.
Gaming is still doing very well but EA, Ubisoft, Microsoft an some others have really fallen off.
Things like COD Modern Warfare exploding in popularity and its sequel. Guitar Hero, Rock Band and DJ Hero.
Then we had companies like Ubisoft with far more interesting output... games like Ghost Recon and Splinter Cell were more unique and less of the Ubi formula. EA was bringing Mass Effect.
Gaming is still doing very well but EA, Ubisoft, Microsoft an some others have really fallen off.
OP
OP
Yup thts how I remember it as well. Alot has to do with saturation of the same shit and that pushes consumers away. Look at how Helldivers 2 has taken gaming by storm, it's because for many it's something new even if it's a shooter it's unlike many out there.
The market needs PS5 DE at $299 and a much better marketing push. Sony is just coasting this gen.
Yes, executives see something make a lot of money and they all try and do the same thing but too late, instead of offering something unique and new.
But then if they do something unique and new and it's not the biggest thing in the world, they say it's a "disappointment"...
The industry has an executive and management problem.
Peripheral age at one point too. WiiFit Balance board and guitar hero really pumped numbers a few years back. Not to discredit but the gimmick gen went hard. Thankfully that ended when Nintendo tried selling cardboard for $100.
Not adjusted for inflation? The chart means nothing. Adjust for inflation AND show the % spend per player.
There were fewer people playing games in 2004 Vs 2024.
Don't show me 'bar on graph higher in 2024' without putting that data into context.
There were fewer people playing games in 2004 Vs 2024.
Don't show me 'bar on graph higher in 2024' without putting that data into context.
Then it's not fully accurate then.
Though I guess in this case, that would make the newer numbers look weaker compared to some of the older ones.
For example 2008's number would actually be ~ $11.2 billion. Or almost 2x 2024's numbers.
So I guess there's some truth that overall spending has gone down, and a lot of that is due to growth of mobile and partly growth of Steam/PC. But the question these analysts should be asking isn't "Why don't console makers put their content on mobile & PC Day 1?", but rather "What areas can console platform holders innovate in with their offerings to boost up the console market's revenue and profits?"
And they aren't asking that question because it inherently means the console platform holders would need to prioritize their consoles, including in terms of exclusive software (for content differentiation). And the other reason they aren't asking that question, IMO, is because they know one of the consoles wouldn't be able to succeed in that manner if they wanted to keep operating on the traditional console business model: Xbox.
All of these "industry solutions" asking for "end of exclusives" and multiplat support etc., are conveniently things which align perfectly with what Microsoft wants. Sony and Nintendo don't need those solutions, but some in this industry are trying to imply it's "vitally important" for them. They're phrasing it this way because they're afraid of specifically mentioning Microsoft or Xbox, as that'd require them to publicly account for their responsibility in Xbox's diminishing value as a console platform.
Also somehow, some in the industry don't want to be seen as "bullying" Xbox in isolating the problem as deserved, but the only people who'd accuse them of bullying are extreme Xbox diehards who have no sense of rationality to begin with.
You have to adjust for inflation (since it seems the data in the graph isn't doing so).
For example, 1999's amount would actually be ~ $3.725 billion in 2024 dollars if adjusted for inflation.
It comes down to console manufacturers using the same play book that they did in 2008; chase a new audience.
Back in 2008 the 'casuals' were happy spending on COD, battlefield and the Wii. They continued this trend for the next ten years until that market aged out, or got bored of gaming.
The new nu-casuals that the console manufacturers are chasing have relatively little interest in gaming, and see it as a platform to spout their mainly political views. Sure, they'll play the latest popular multiplayer slop but they won't open their wallets like hardcore or casual games do/did.
Combine with that, the new market is extremely fickle and have largely migrated to tiktok in chase of a quicker, easier dopamine hit. This has pulled the rug on console gaming.
Just like modern day GDP, inflation and recession calculations, the numbers are highly fudged to paint a Rosy picture.
The truth is, the wrong audience was chased at the expense of two previous groups that would spend. Now we see fad purchases and trend-buying which drops off quicker than anything else, padded out with MTX and DLC.
Think about this; how can a healthy industry, that's more lucrative than ever - if we go by the numbers, be seeing failure after failure with games and massive budgets producing nothing.
Take any game from 1990-2010 that had 'largest budget ever' and it returned huge profits. That doesn't happen now. Why?
And yet with inflation adjustment modern day sales are still higher? its averaging around 5-7 billion
Need to correct this assertion. Relative to consoles, PC spending has definitely NOT grown. And PC having a userbase that spends at half the rate of the console one means it's more lucrative to try and expand your console market share, like PlayStation has done.
yeah, we can see it. almost all PS ports bombed.
instead of expanding in console phere, they chosed not to and go with least important userbase, wild.
Wii and Kinect are what is making this graph looks worse than it is.
It's a pretty mature and steady market with ample room for both Sony and Nintendo to have have 100m+ unit platforms. There is just no room for Xbox.
It's a pretty mature and steady market with ample room for both Sony and Nintendo to have have 100m+ unit platforms. There is just no room for Xbox.
They've done both - once Xbox is gone they'll have ~60% share, which is more than their target of 50%. But what you don't want to do is make that 60% of a smaller pie, which is why pulling back from PC is the right choice. For every 1m they make on steam game sales, they make 2 on PlayStation. Then add peripherals, subscriptions, other hardware.
Useless graph from Fat PIGscatella.
The portable hardware from 2008-2009 moved to mobile and iPads. Guitar Hero fans are now playing with their vibrators and personal massagers. Not under gaming hardware
The portable hardware from 2008-2009 moved to mobile and iPads. Guitar Hero fans are now playing with their vibrators and personal massagers. Not under gaming hardware
All the analysts started saying these things as soon as Microsoft announced they would port the 4 games. Before that, everything was fine and the premium market was doing great. Mat had nothing but praise for the console market.