Are we seeing another collapse of the games industry?
Having lived through the gaming/atari collapse of 1983 where revenue plummetted an incredible 95%+, are we seeing the next collapse first hand....or are the recent numbers just an industry adjustment.
So any of you under about 40 years of age are probably too young to remember this...
But in about 1983 the gaming industry was worth around 3 Billion annually. Then the wheels fell off and industry revenues plummetted to about less than 100 mill.
Primarily this was caused by over-saturation and too many companies producing crap games. Sales plummetted and the industry panicked and everyone lost their job. It took around 3 years for new games to start coming out again. Start-ups were very slow to turn around until Nintendo and Sega started rolling in house games for their new consoles.
PC gaming blew up with the age of the home PC. Pirating was insane and the gaming industry was a tough go for a good decade or so.
Are we right back there again?
Some Game companies are producing crap games, half finished games... etc. There are a lot of companies charging $150-180 for the full gaming experience, however disposable income of most gamers hasn't increased significantly. Triple A titles that are normally cash cows are reporting a drop of 31-34% in projected revenues over the Christmas period.
Some game companies are hoping their expensive games have longer tails or are depending on rereleased, remastered blockbusters to keep the coffers full. But those are band-aids.
I think this is an industry adjustment, and a bigger industry adjustment is coming if companies don't change their business model. With VR and a couple new consoles rolling out in 2017, is this a perfect storm for an industry collapse?
So love to hear some thoughts and view points.....