profits
Music game sales have fallen off a cliff
The music rhythm genre isn’t what it used to be. We started with one guitar and a few dozen cover songs, to a real guitar with thousands of officially licensed tracks. When you look at it from that angle, the genre has made a huge leap forward. This is true, but it came at the expense of its own profitability.
Nintendo brings in a whopping $6 per Wii
When the Nintendo Wii was first unveiled, heads spun and Nintendo and it was uncertain that Nintendo knew what it was doing. Being technically inferior to its competitors – the PlayStation 3 and the Xbox 360 – and by not including high-definition graphics or DVD movie playback and focusing on seemingly gimmicky motion controls, the Wii was, at the time, written off as an asinine product.
According to Forbes, Nintendo’s asinine product is the only home console system of this generation turning in a reasonable (if not only) profit so far, which means the company knew exactly what it was doing all along (or the employees prayed to the right money god).
Gearing the system toward the casual market, a market that up until now was ripe for the picking, Nintendo is…
Video games not necessarily a money making industry
If you think the gaming industry is a sure fire way to make some money, you are way off.
According to Electronic Entertainment Design and Research (EEDAR), only 20% of games that hit the market make a decent profit. That means that 80% of the games you see on shelves are either losing profits or barely breaking even.
A game may be very successful but the company still doesn’t make a profit because of all the added expenses that went into the game. Every time you rework or redesign a part of the game, you have to fork over some extra cash. If you decide to add in extra features to the game, such as online play, you gotta open up the wallet. And adding multiplayer, is it worth an extra 500 Gs?
According to Geoffrey Zatkin, co-founder of EEDAR (as interviewed by Game Daily), there are several factors that determines what will
Q2 profits cause GameStop to rethink in-store marketing strategy
With the rise of new game genres and more educated consumers purchasing games, videogame retailer GameStop took a step back to rethink its in-store marketing strategy to cater to the casual gamers and those consumers with limited budgets statewide.
“Honestly, we are having to retool the way we think of things in our stores in terms of merchandising, layout and also customer service because it is no longer only the hardcore gamer walking in who knows exactly what he wants,” said Daniel A. DeMatteo…
