PC Gaming Market Doing Well in Recession

[Andy Chalk]

PC Gaming Market Doing Well in Recession

Things are tough all over, even in the gaming industry, but new market research shows that the platform best handling the punishing effects of the recession is none other than the venerable PC.

The PC gaming hardware market has slid but the decline is less pronounced that that experienced by game consoles, according to a new report by Jon Peddie Research [http://jonpeddie.com/]. The total market for PC gaming hardware is predicted to fall to $18.65 billion in 2009, a seven percent drop from the 2008 mark of $20.07 billion, driven down by both the recession and lower prices on PC hardware. Overall, however, PC gaming hardware has experienced less discounting than that of console hardware, a fact the report says "illustrates the value consumers place on such systems."

In spite of the decline, the PC gaming hardware market in 2009 (which includes the PC, a percentage of the cost of a monitor and accessories as well as aftermarket and DIY parts and systems) is predicted to surpass that of all gaming consoles combined (calculated to include the cost of the console, a "certain amount" of accessories and the cost of an HDTV for display) by nearly $2 billion. The report also forecasts that things will pick up considerably following the downturn in 2009, with the total market value expected to hit nearly $24 billion in 2010, $29 billion in 2011 and $30.6 billion in 2010.

Analysts at Jon Peddie Research say PC gaming hardware is suffering less during the economic downturn because it's a "very economical form of entertainment." While that description can also be applied to consoles, PCs are far more flexible; a system designed for gaming is also fully capable of performing "conventional" PC tasks, such as office work and internet access, something consoles cannot offer.


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[BrotherRool]

Except now consoles offer internet access. Well at least the PS3 does I don't know whether you can browse on a 360. Consoles are so going to converge with TV's and computers again soon.

 

[fix-the-spade]

Except now consoles offer internet access.

It does, but not to the same level as a PC, can read an article, save it then start editing the saved copy for instance?

I think what the Peddie people are getting at is that people see a pc as a necessity now, in relative terms it''s cheaper to buy and play games for the pc you already have than to but a separate console.

 

[unangbangkay]

And yet we still see tiresome comment after tiresome comment about how PC gaming is dead. It may not be the one dominant platform anymore, nor the immediate go-to for the genres a lot of people think define gaming, but it's there, and it's doing quite well, thank you very much.

 

[Doug]

And yet we still see tiresome comment after tiresome comment about how PC gaming is dead. It may not be the one dominant platform anymore, nor the immediate go-to for the genres a lot of people think define gaming, but it's there, and it's doing quite well, thank you very much.

Quite so. To be honest, I was amazed when I heard people saying "oh, Pc gameing, is DEAD!!!!1111!!!1", but as a live long PC gamer, I can happily say its not dead, and the games on it are typical more fun that a console game. When said game isn't a crap port onto the PC, of course.

 

[fix-the-spade]

You can install Linux on a PS3, so technically yes.

I stand corrected, that's pretty cool actually.

 

[MrPop]

I suppose though console gaming has higher to fall from than PC gaming. Which may be why it has been worse hit. I wouldn't mind PC gaming if it were not for the fact that it is temprimental sometimes (Crashes, errors etc).

And don't forget the Wii has internet too :O

 

[Lord_Panzer]

You can install Linux on a PS3, so technically yes.

I stand corrected, that's pretty cool actually.

And now, to take it one step further, from the men who bring us Unskippable. [http://loadingreadyrun.com/videos/view/201/Installation-Anxiety]

 

[John Funk]

And yet we still see tiresome comment after tiresome comment about how PC gaming is dead.

Not to mention tiresome comment after tiresome comment about how piracy is killing PC gaming.

I don't know if I'd say killing, but piracy is a huge thorn in the side of the entire industry as a whole. That's undeniable.

 

[John Funk]

...piracy is a huge thorn in the side of the entire industry as a whole. That's undeniable.

But the fact that the pirate-proof PS3 market is suffering more than PC market would suggest that the financial impact of piracy is negligible. My personal opinion is that piracy's impact is minimal, primarily because a downloaded torrent does not equal a lost sale: people don't pirate instead of buying, they pirate because they don't want to buy that particular thing at that particular time. I speak from experience.

The majority of lost sales occur as a result of the second hand market (especially eBay, where almost all games are available for less than half of their full retail price within weeks of going on sale). Case in point: I've bought more than thirty games this year, one of which (Persona 4) was new. From a developer's point of view, this is no different from me pirating every game except one. But hang on a second, I couldn't pirate them even if I wanted to because I have a PS3 and an unmodded PS2.

Don't you find it curious that the second hand PC market is effectively dead (both in stores and online) yet sales of brand new PC games are faring better than the competition? I can walk into any game shop right now and see row upon row of preowned PS2 games, PS3 games, 360 games, DS games and PSP games. The one missing category is PC games, which I can't buy second hand anywhere. So it is not possible for lost sales to occur. Funny that. But oh no it must be pirates... arrr!

I never said piracy was the only concern. Simply that it is, in fact, a serious concern. I think that the PS3 market suffering is partly due to the system marketing itself as the "luxury" choice this time around, particularly in a worsening economy.

The second-hand game market is another problem. Unfortunately, it's a bit of a trickier issue, since it's not exactly practical - nor ethical - to tell people they cannot transfer ownership of their legitimately owned copies. I'm not disagreeing with you there, either.

You haven't said anything incorrect, but it still doesn't directly contradict anything I said, either Piracy exists, it does hurt sales - though certainly not on a 1:1 ratio - and it's a problem that developers are trying to deal with especially as development costs skyrocket.

 

[capnjack]

I don't know if I'd say killing, but piracy is a huge thorn in the side of the entire industry as a whole. That's undeniable.

It actually is not undeniable. What is undeniable is that most companies are too busy WASTING resources fighting piracy, instead of competing with it. Companies like Stardock are beginning to get the right idea, and it'll pay off in the long run. As for the rest, the ones treating their customers like criminals, adding DRM and reducing the value of their products... They're going to suffer for it. A good example is my criticism of those complete idiots [http://www.escapistmagazine.com/forums/read/7.105894?page=2#1801927] at Wizards of the Coast, who stopped selling a book online because it was pirated. Obviously it was going to be pirated, but once they took it down, they made it only possible to obtain it illegally.

Stupid businessmen who cannot adapt to the technological revolution are going to suffer.

And that goes for every single form of media out there: video games, movies, music, television and even newspapers (though their problems are obviously different). Some people in various forms of media are beginning to realize that the only way to fight piracy is to stop trying to fight piracy. You cannot fight it without changing legislation to take away consumer rights, and forcing other businesses to do a job that isn't their responsibility (forcing ISPs to boot people off, like in France with the three strikes rule).

What you have to realize is that people will pay for quality and convenience. Right now, for a lot of people, not only can you get things for free, but you can get them faster, more efficiently, and better quality online. I can quickly download an entire album in any format I want with a bit rate 320, or a DRM-free video game, or a television show at any time of the day I want. If iTunes offered me a DRM-free high-quality album of any format for a reasonable price, with artwork and maybe some videos, you can bet I'd be all over that shit. They'd gain customers. I fully believe most people want to support what they love. If they're not supporting it, they either don't love it, or wouldn't support it any way, or have a much better option.

The thing is, many of these companies don't realize they still have the upper hand. They just have to start experimenting with business models that work. If television networks, for example, distributed high-quality content online, simultaneous with the airing on the network, they'd actually gain viewers. There are tons of things that every company in every market could be doing, but the biggest companies aren't experimenting, and when they come crashing down, others will rise up in their place.

 

[capnjack]

Evidence proves you wrong. World of Goo, Stephen King's "The Plant", Demigod, just to name a few.

Some people will pay for quality and convenience. Other people are simply selfish pricks.

Name a few what? What evidence. Giving me a bunch of names with no comment on what happened serves as evidence now? You've simply stated an opinion. In fact, there is plenty of evidence contrary to what you claim. I don't know what Stephen King did with "The Plant", but if he used piracy to his advantage like prominent author Paulo Coehlo did [http://www.techdirt.com/articles/20080512/2006431095.shtml], then maybe things would have turned out differently.

As for Demigod - if your only source is the Escapist, then you're going to obviously be biased and think that it wasn't a success. But by all means, Stardock's strategy was a success [http://www.techdirt.com/articles/20090428/0213514675.shtml], even though they were just experimenting and could definitely have done things better. And they're still playing it smart, treating their customers and even potential customers (who are playing illegitimately) right. It's working out profitably for them.

In fact, Stardock's CEO is convinced by their strategy and he has said the same things I'm trying to say [http://www.techdirt.com/articles/20090501/1220064718.shtml]. Focus on your customers, ignore the pirates. Treat people right and make good quality products that are easy to access and fairly priced, and piracy becomes a non-issue. Actually, let me correct that: fair pricing isn't the real issue, but using the infinitely reproducible goods to make the scarce goods sell better. Once a single album is uploaded online, it can be reproduced infinitely - so maybe coupling a digital album with a concert ticket, for example, would sweeten the deal enough to give you a huge boost in concert sales. Either way, treat your customers right and adapt to the market, because that's where the real issue is here.

You'll see plenty of evidence for this if you look for it, but you have to make sure you're getting your information from competent sources. Peopel are and people definitely can TAKE ADVANTAGE of piracy. If you don't believe me, then please, give me some evidence before you spurt your nonsense.


Note: you want to ask why I'm linking to a blog that links to the sources, and that would be a perfectly reasonable question. The reason I'm doing that is because I am neither the most literate nor am I an expert on this subject. If the things I've been trying to prove have explained better before, then I'll provide the link. Check them out to get a deeper explanation than I can give you.

 

[Jupsto]

Except now consoles offer internet access. Well at least the PS3 does I don't know whether you can browse on a 360. Consoles are so going to converge with TV's and computers again soon.

really I didn't know. If the next generation can do basic PC stuff like browse internet, maybe even install mods etc. then I will probably renounce my title of PC gamer.

 

[Lord Krunk]

Mainly because PC games are cheaper, mainly because PC games can be bought off Steam.

Seriously, Call of Duty 4 -a game that was released two years ago- is still over $100 in Australia. I shit you not, over here, console game prices are rising rather than dropping. Bad move on the part of the retailers, but I guess someone pays that much.

What ticks me off is that I'm coming to California in a few months, and I can't get any console games because of the formats. And Brutal Legend will be out there by then!

 

[IrrelevantTangent]

Makes sense, considering the developers of PC gaming sold their souls to Satan.