Games v. Movies: The Numbers

December 28, 2010 -

Update: We mistakenly attributed the post in the story below to David Bordwell. It was actually written by Kristen Thompson. Corrected story below.

Kristin Thompson picks apart the numbers in the November 15 issue of Newsweek, which compares sales of the movie industry with the video game industry. The article appears in "Back Story," the one-page article that comes at the end of each issue. The article, "How Super Is Mario?," puts a brave face on the video game industry. We have heard analysts and research firms say that the video game industry has surpassed movies.

Thompson dissects the numbers in the article and finds that the, while the video game industry is catching up to the movie industry, it still has a long ways to go:

"But in fact the Newsweek analysis just repeats the conventional wisdom it claims to overturn and makes the same old invalid comparison that entertainment-business journalism has been making since video games started making real money. A cursory glance at the pie charts makes it seem as if the gaming industry is not all that far behind films: the games total is $60.6 billion vs. $77.1 billion for movies. But let’s take a glance that isn’t cursory."

However, here is where the truth comes out. If you take hardware and accessory sales out of that impressive number and look solely at software - video games don't come anywhere near the levels that movies are currently at:

"The figure includes the consoles and other equipment people buy in order to play games. But the pie chart of movie-industry income doesn’t include hardware. What would happen if the sales of theater and home projectors, DVD and Blu-ray Players, iTouches, and all the other gadgets used to watch movies were factored into the film-income figures? As we know, there have been a lot of digital theater projectors and 3D systems sold in recent years, not to mention all those portable media players. The games industry would fall farther behind than it already is. (And let’s not forget that most of those gaming consoles also play movies, so an indeterminate part of their income should go into the movies column. Since last January, the Wii even comes with a Netflix connection installed.)"

"Consoles are listed at $18.1 billion and accessories at $6.6. Take them away, and games software brought in $35.9 billion in the period covered (January 1, 2008 to September 30, 2010). There’s nothing to take away from the film pie, since it consists entirely of software rentals and sales. So film still brings in more than twice as much, $35.9 billion vs. $77.1. DVD and Blu-ray sales, at $34.2 billion, make nearly as much as all games."

You can read the rest of the post here. Thanks Gus Mastrapa.

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PHX Corp@Adam802 We'll break out the popcorn in June12/19/2014 - 9:23pm
ZippyDSMleeMaskedPixelante: I'm itching to start it too but I will wait till the patch goes live. >>12/19/2014 - 7:52pm
Adam802Leland Yee and Jackson get trial date: http://sfbay.ca/2014/12/18/leland-yee-keith-jackson-get-trial-date/12/19/2014 - 5:24pm
MaskedPixelanteNevermind. Turns out when they said "the patch is now live", they meant "it's still in beta".12/19/2014 - 5:07pm
MaskedPixelanteSo I bought Dark Souls PC, and it's forcing me to log into GFWL. Did I miss something?12/19/2014 - 5:00pm
Matthew Wilsonhttp://arstechnica.com/tech-policy/2014/12/republicans-may-have-plan-to-save-internet-providers-from-utility-rules/ this is intreasting. congress may put net nutrality in to law to avoid title 2 classification12/19/2014 - 2:45pm
Matthew Wilsonhttp://www.polygon.com/2014/12/19/7421953/bullshit-cards-against-humanity-donated-250k-sunlight-foundation I have to admit I like the choice o organization. congrats to CAH.12/19/2014 - 1:51pm
E. Zachary KnightIf you are downloading a copy in order to bypass the DRM, then you are legally in the wrong. Ethically, if you bought the game, it doesn't matter where you download it in the future.12/19/2014 - 12:06pm
InfophileEZK: Certainly better that way, though not foolproof. Makes me think though: does it count as piracy if you download a game you already paid for, just not from the place you paid for it at? Ethically, I'd say no, but legally, probably yes.12/19/2014 - 11:20am
ZippyDSMleeAnd I still spent 200$ in the last month on steam/GOG stuff sales get me nearly every time ><12/19/2014 - 10:55am
ZippyDSMleeMaskedPixelante:And this is why I'm a one legged bandit.12/19/2014 - 10:51am
ZippyDSMleeE. Zachary Knight: I buy what I can as long as I can get cracks for it...then again it I could have gotton Lords of the Fallen for 30 with DLC I would have ><12/19/2014 - 10:50am
MaskedPixelantehttp://www.joystiq.com/2014/12/19/marvel-vs-capcom-origins-leaving-online-storefronts-soon/ Speaking of "last chance to buy", Marvel vs. Capcom Origins is getting delisted from all major storefronts. Behold the wonders of the all digital future.12/19/2014 - 9:59am
MaskedPixelanteSeriously, the so-called "Last Chance" sale was up to 80% off, while this one time only return sale goes for a flat 85% off with a 90% off upgrade if you buy the whole catalogue.12/19/2014 - 9:37am
E. Zachary KnightInfophile, Tha is why I buy only DRM-free games.12/19/2014 - 9:37am
MaskedPixelanteNordic is back on GOG for one weekend only. And at 85% off no less, which is kind of a slap in the face to people who paid more during the "NORDIC IS LEAVING FOREVER BUY NOW OR FOREVER HOLD YOUR PEACE" sale, but whatever...12/19/2014 - 9:28am
InfophileRe PHX's link: This is one of the reasons the digital revolution isn't all it's cracked up to be. There's also the flip side where Sony can block access to games you've bought if they ban your account for unrelated reasons. All power is theirs.12/19/2014 - 8:52am
MaskedPixelantehttp://uplay.ubi.com/#!/en-US/events/uplay-15-days You can win FREE GAMES FOR A YEAR! Unfortunately, they're Ubisoft games.12/18/2014 - 6:29pm
Papa MidnightAh, so it was downtime. I've been seeing post appear in my RSS feed, but I was unable to access GamePolitics today across several ISPs.12/18/2014 - 6:06pm
james_fudgeSorry for the downtime today, folks.12/18/2014 - 5:54pm
 

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