Data Filter: The News You Need in Easy-to-Swallow Gel Cap Form

Electronic Gaming Business, Feb 11, 2004

Rental revenue from games continues an upward path, with almost all members of the top 20 making more this week than last, including titles that dropped down the list. This double digit growth in this sector is hard to overlook especially when you have mediocre sales performers like Manhunt maintaining position long after most of us have forgotten it at retail. Clearly this is a place where consumers can be urged to experiment with different themes and game play, if only publishers got behind promoting them more effectively in this channel.

Top Selling Japanese Titles (week ending Feb. 1)
Rank  Game\Publisher                                   Platform
1     Pokemon Fire Red (w/wireless adapter)\Pokemon    GBA
2     Pokemon Leaf Green (w/wireless adaptor)\Pokemon  GBA
3     Hajime no Ippo 2: Victorious Road\ESP            PS2
4     Funn Shinsengumi\Genki                           PS2
5     Shin Megami Tensei III\Atlus                     PS2
6     Smackdown: Here Comes the Pain\Yuke's            PS2
7     Upset Trial 3\Capcom                             GBA
8     Star Ocean 3\Square Enix                         PS2
9     Phantom Brave\Nippon Ichi Software               PS2
10    Mega Man Battle Network 4\Capcom                 GBA
Source: Media Create

The Japanese charts are notable this week both for their blistering sales and their remarkable turnover. Virtually everything in the current list was released in the last two weeks, and total sales were double over the previous week, with 1.65 million units. Pokemon leads the way with two GBA titles that quickly sold over 1 million units together. The relentless Pokemon fever also drives GBA hardware sales. For the week, the handheld commanded a 48.6% market share over next-comer Playstation (34.49%).

Advanced Game Console Users Worldwide, 2002- 2008 (in millions and % change
vs. previous year)
2002  56.3 (129%)
2003  89.0 (58%)
2004  111.0 (25%)
2005  124.7 (12%)
2006  138.9 (11%)
2007  151.7 (9%)
2008  158.1 (4%)
Source: Strategy Analytics

While some in the industry feel that each new generation of sophisticated console hardware and software grows the gaming audience (this is a common Electronic Arts line), the projections from Strategy Analytics suggests that the industry might be wiser to contemplate a leveling of demand soon after the big three roll out their next hardware. With few signs that publishers have succeeded in broadening the gaming franchise, at least on consoles, outside of the large niche of existing gamers, it seems more likely that console based gaming is approaching its saturation point. The implications of this, if true, is that publishers cannot expect a substantially broader base to pay for the inevitably much more expensive development costs of next-gen blockbusters. Almost certainly, prices will have to go up in the next generation of software in order to support these budgets and a relatively static (by 2008) audience base.

History Lesson

Cable network GSN (formerly Game Show Network) will run a two-hour documentary on the history of video gaming on March 21 at 9 pm. Hosted by Tony Hawk, "Video Game Invasion" recounts the competition among the industry's original designers and legendary innovators, including interviews with Nolan Bushnell, Seamus Blackley, and John Romero.