Triangle game industry can take heart in '09 sales

Updated Jan. 18, 2010 at 8:32 a.m.

Triangle game industry can take heart in '09 sales

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Note: The Skinny blog is written by Rick Smith, editor and co-founder of Local Tech Wire and business editor of WRAL.com.

RESEARCH TRIANGLE PARK, N.C. – The Triangle’s growing videogame industry can find some solace in overall 2009 sales figures even though games, platforms and accessories generated less revenue than in 2008.

Why? The recession adversely affected virtually every industry. Plus, even though overall revenues dipped to $19.66 billion from $21.4 billion the previous year, that total is the second best on record, according to NPD Group.

Unfortunately, the game industry didn’t prove to be recession proof as so many people had predicted. But with the new “Call of Duty: Modern Warfare 2” already topping $1 billion in sales just two months after release and on its way to setting a single-title sales record (See LTW’s review here), it’s clear people still are spending for well-designed games delivered on technically slick platforms.

Plus, when one looks at the top sales figures for individual games both for platform and PCs, one finds a mix in popularity. In other words, it’s not “if it bleeds, it leads.”

With the success of Wii and its wildly popular motion platform, for example, the videogame industry is reaching far beyond the traditional customer base of geeks, thrill seekers and military aficionados. After all, how many members of your family use Wii for exercise, not just fun?

Another plus is the fact that there is so much competition – from multiple platforms to many genres of titles.

Price cuts in platforms certainly helped increase sales. As the AP points out: "Hardware sales jumped 16 percent to $2.19 billion. The Nintendo Wii sold 3.8 million units, more than its rivals, the PlayStation 3 and the Xbox 360 did, combined. It set a record for most gaming systems ever sold in a single month."

Note the record for Wii.

Note the looming record for Call of Duty.

Hey, the videogame sector business news isn't all bad, pilgrim.

The continuing fierce competition between Xbox, Nintendo, PlayStation and Wii means lower prices, more features, improved performance – and much more. That in turns means more demand for games and technology (such as game engines such as Epic Games' popular Unreal) which is where Triangle companies are focused.

And if 3D really takes hold as indicated by the popularity of the movie "Avatar" - watch out for more opportunities. In fact, Epic has just joined a 3D standards group.

Here’s how NPD Group’s Anita Frazier summed up the state of the industry:

"When we started the last decade, video game industry sales, including PC games, totaled $7.98B in 2000.

"In ten years, the industry has changed dramatically in many ways, but most importantly it was grown over those years by more than 250 percent at retail alone. Considering there are many new sources of revenue including subscriptions and digital distribution, industry growth is even more impressive."

Business leaders in the Triangle are continuously and aggressively trying to grow the region’s game industry. They are betting on a bright future – and more jobs.

That bet seems to be a wise one.

For the record, some NPD sales date:

The mix of top 10 selling console and portable games as compiled by NPD indicates a variety of interest among players:

1. 360, Call of Duty: Modern Warfare 2
2. Wii, Wii Sports Resort with Wii Motion Plus
3. Wii New Super Mario Brothers
4. Wii, Wii Fit with Balance Board
5. Wii, Wii Fit Plus
6. Wii, Mario Kart with Wheel
7. Wii, Wii Play with Remote
8. PS3, Call of Duty: Modern Warfare 2
9. 360, Halo ODST
10. Nintendo, Pokemon Platinum Version

A good mix of titles also made up the best-selling list for PC games:

1. PC, The Sims 3
2. PC, World of Warcraft: Wrath of the Lich King Expansion Pack
3. PC, The Sims 2 Double Deluxe
4. PC, World of Warcraft Battle Chest
5. PC, Call of Duty: Modern Warfare 2
6. PC, World of Warcraft
7. PC, The Sims 3: World Adventures Expansion Pack
8. PC, Spore
9. PC, Dragon Age: Origins
10. PC, Empire: Total War

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Tags: Epic Games

The Skinny

WRAL Local Tech Wire Publisher and Editor Rick Smith dishes out tidbits from the local technology sector. Read more articles…

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