A Look at the Gaming Industry: Hold the Panic - A Matter of Perspective
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The GigaOm article defined the game industry as “the major consoles and game publishers.” The author, Wagner James Au, states bluntly that the industry is currently, with one notable exception, “but a sliver in a much larger interactive entertainment pie.” Is this view justified?
He cites an impressive list of failures. Electronic Arts, the largest publisher in the industry, booted its CEO and drastically scaled back its profit estimates. Both the Xbox 360 and the PlayStation 3 sell poorly when compared to the PS2’s installed base of more than 100 million – and the Wii, originally dismissed by many hardcore gamers because of its less-than-impressive graphics quality and titles, outsells them both.
Au also points to the popularity of non-game virtual worlds such as World of Warcraft, which premiered in 2004. When the gaming industry as Au defined it tried to create its own MMOs, they failed left and right. World of Warcraft was followed by Gaia Online, Club Penguin, Second Life, and others that attract millions of users. All of these virtual worlds are put out by companies other than EA and traditional video game producers.
And then there’s the rise of PopCap Games and similar sites. These are places web surfers can go to play casual, entertaining, and addictive games. Many are nonviolent, puzzle-based, and easy to learn – and though a single game can be played quickly, they’re rather like potato chips (bet you can’t play just one). But these companies are not the same ones that produce games like the Grand Theft Auto series.
From Au’s perspective, the video game industry is not rising to the challenge of all these new companies with different approaches. But shouldn’t these creators of casual games and virtual worlds logically be counted as PART of the gaming industry now? Think about it. Do we consider arcade games to be any less a part of the gaming industry than computer-based video games? Granted, the two grew up together, but does it really make sense to say “the gaming industry is in crisis” when in fact it looks more like it’s simply attracting more and different competitors?
Next: A Nontraditional Approach >>
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