The AAA Gaming Industry Is Going To Crash

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Sneezeguard

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Oct 13, 2010
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And so another prophet comes bringing tidings of doom and woe, what else is new?

Like so many others before you come making these claims but you do not tell whats causing it and how it might be stopped. You just bring your predictions of the future and nothing else.
 

NinjaDeathSlap

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Feb 20, 2011
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Daystar Clarion said:
Oh lawd, not this again.

It's the 'PC gaming is dying' thing all over again.

The industry will regulate itself long before a crash ever happens.
Yup.

To answer the question of what makes Gaming different to the rest of the economy... escapism. I'm not saying that that is enough to weather the storm without a hitch, but as the outside world begins to suck more and more, the entertainment industry sees a swell in business.

CAPTCHA: 'been there'. Indeed.
 

Epona

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Jun 24, 2011
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Everyone seems to think E3 has been a failure this year. Even with a new hardware launch for Nintendo, very few are impressed.

I think people are getting tired of the same ol same ol and also tired of what they perceive as gimmicks. I also think that as consoles become more and more PC like and PC's get cheaper and cheaper, consoles have very little to offer that people can't get from a PC.

I missed Nintendo's show but apparently the only interesting thing was Pikmin 3 and even then people thought the graphics looked dated.
 

Rednog

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j-e-f-f-e-r-s said:
rob_simple said:
Just like home-taping killed the music industry, then.
You mean the same music industry that has been losing billions of dollars, year in year out, for the last decade?

OT: Something's definitely going to give soon. The real issue is that most games are not as profitable as most gamers think. There are a few series like COD and WOW which make serious, record-breaking bank. There are occasional AAA games like Skyrim which end up selling over ten million. The majority of AAA games, however, struggle to just break even, let alone turn a profit. A lot of them don't even manage that.

You only have to look at the fact that triple-A companies like EA and Sony have been losing hundreds of millions over the past few years to realise that the game industry's financials are not as rosy as we would like to think. THQ is gazing down the barrel. Sony and EA have both been making massive losses. Sega is re-organising its entire corporate structure. The only AAA publisher who's really sitting happy is Activision, due to the combined income of both Call Of Duty and World of Warcraft.

This is what happens when you have everyone trying to compete for the 'most successful game EVAR' title. You'll have one winner, and everyone else will have bankrupted themselves trying to scramble to the top.
Sony's game branch is the only part of Sony that's in the black, the only reason they are hemorrhaging money and having record low stock prices is because their electronics are failing hard.
 

rob_simple

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Aug 8, 2010
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j-e-f-f-e-r-s said:
rob_simple said:
Just like home-taping killed the music industry, then.
You mean the same music industry that has been losing billions of dollars, year in year out, for the last decade?
You mean the music industry that's been forced to re-invent itself in a form that is now more supportive of old and upcoming musicians alike, and infinitely better value to the consumer than it ever was when only major publishers could pull the strings?

The music industry is in a better condition from an artist/consumer point of view than ever before; the only people really suffering from the billions in losses that you mention are the companies who spent decades extorting the consumer and paying many of their performers a pittance for their work.

If the same thing happens to companies like EA, then I'm all in favour of a AAA 'crash'.
 

marrrk

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Jun 5, 2012
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If we're speaking purely AAA market then I doubt there'll be a full 'crash' per se. The AAA publishers and developers will evolve and adapt to the demands of the market. Look at EA's attempts to steal a slice of the 'indie' pie (effectiveness not withstanding). Even the proliferation of F2P games are evidence of shifting business practices. Kickstarter warrants a mention too (although not in a AAA sense). Point being that changes are already in progress.
Yes, there's going to be market saturation of whatever the craze of the time is. But that's more an inevitability of the market and of businesses than a symptom of the AAA market crashing. Yes, those that can't make the change might be in for some hard knocks, but I sincerely doubt our current video game market is even still capable of 'crashing' in the same sense as the one in the 80s.
 

Atmos Duality

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Hmm. Well.
The Japanese Publishers haven't crashed so much as eroded slowly.
And they were dominant at the start of the millennium. Perhaps that's the "death cycle" we're looking at? Will the Western market mirror that? Difficult to say.

The Western (American/Canadian/European) Market in comparison has shown to be a crescendo, starting from about 2003-04 to present, with the Japanese share falling slowly, and proportionately (well, to be expected, that's how proportions work. You can't gain 1% without someone else losing 1%, even if the entire market grows empirically)

I don't think the AAA market is going to crash per say...certainly not yet.
There are too many stable avenues of revenue for its biggest members.

However, I can see this scenario happening at a very low probability. The key to look for is consolidation within the pillars of industry. Namely, larger publishers cannibalizing each other and consolidating the actual developers beneath them.

The fewer publishers there are, the more likely one of them is to under perform at some point, and that will result in HUGE slashes to production across the board. And that's before factoring in problems stemming from monopoly; we're already seeing problems from oligopoly springing up.
 

ElPatron

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j-e-f-f-e-r-s said:
rob_simple said:
Just like home-taping killed the music industry, then.
You mean the same music industry that has been losing billions of dollars, year in year out, for the last decade?
The music industry grew 36 billion from 2005-2010.
 

bafrali

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Nah it isn't going to crash. Worst they will do is stop take deep breaths 1-2 years after exhaustion and go on full speed with new titles (and hopefully new IP'S)
 

Terramax

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Seems to me, the problems the OP talks about i.e. DLC and over-saturation are more poor business decisions than a failing market.
 

Soviet Heavy

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Vault101 said:
DOOM!!!! DOOOM I SAAAAAAAAAAAAAAAY

well that was fun.....Im going to go finish of that backlog full of AAA games now..*sigh*

If the AAA industry falls, the indie market will take over. We're not screwed yet, we're just adapting.