Global Game Industry News Blog

Tuesday, July 18, 2006

Growing the Market = What's the Market?

I think there is an interesting key point here. That sh*t is hitting the fan. The industry is changing.

GameDaily BIZ: Opinion: The Video Game Business Is Broken
5. Growing the market - Where will the growth come from? Will the size of the hardcore audience suddenly double and triple or do we need the broad base of the mainstream to grow the business? The answer is obvious and so far the winners seem to be Microsoft with Xbox Live Arcade and possibly Nintendo with its easy to use and enjoy Wii games.

At a recent trade event, a game retail representative said that video games are "not a business but an industry." There is a lot of nervousness out there as to what's around the corner. Recently investor Stewart Alsop of Alsop Louie Partners said that this is not just another console transition but a fundamental change of market. What are the publishers' and retailers' strategies to react to the new landscape? Will online distribution be additive to the retail model or directly competitive? Is there a business model for many game publishers or is there just room for a few gorillas who ultimately consolidate everyone else?

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