Business of Esports - 230. Office Hours: Game Sales On The Decline

William Collis:

Hey, everyone, welcome to another episode of

William Collis:

office hours with the professor. As always, I'm your host,

William Collis:

William the professor Kahless. And I want to get right into our

William Collis:

story this week, and that is, game sales are down. This comes

William Collis:

from a sports business journal article, which is commenting on

William Collis:

NPD data. And apparently for the month of April, game sales are

William Collis:

down 8% compared to the same month last year to 4.3 billion.

William Collis:

And in fact, year to date, sales for games are also down 8% to

William Collis:

18. Point 3 billion. I first want to start this article with

William Collis:

just an early comment, which is a little bit facetious, but I

William Collis:

sort of mean it, it's a little bit who cares. Because the

William Collis:

reality is, lots of industries are down. There's a lot going on

William Collis:

in our world today, and 4.3 billion for single month of

William Collis:

sales is still a huge number. The other piece about this is in

William Collis:

the NPD data, not necessarily all digital game sales are

William Collis:

included. So particularly as more and more game sales shift

William Collis:

to digital. I'm more and more skeptical of sort of the

William Collis:

magnitude of this trend, our game sales probably down year on

William Collis:

year. Yes. Is it something we should be worried about as an

William Collis:

industry? No. So you might say, well, William, why did you want

William Collis:

to do this story at all? Then if your comment is who cares? game

William Collis:

sales are down? And the answer is because I want to talk about

William Collis:

the sales of two specific games. I want to talk about the sales

William Collis:

of Horizon forbidden West, and Elven. Right. Because I would

William Collis:

argue that these games are pretty similar. They're both

William Collis:

very deep involved RPGs. And they're both actually

William Collis:

surprisingly large. I would also argue that they're both

William Collis:

absolutely incredible games, I played both, I found each of

William Collis:

them to just be real wheel masterworks that clearly, their

William Collis:

developers put just so much passion and love into however, I

William Collis:

think if you look at the sales data for these games, you see

William Collis:

sort of an interesting story. So Elden ring has sold incredibly

William Collis:

well. In April, it was the second best selling game of the

William Collis:

month. And I believe the prior month, it was number one. And

William Collis:

this is after launching. So towards the end of February. So

William Collis:

this is basically launch month sales data. In contrast horizon

William Collis:

forbidden West was the fifth most popular games, then march

William Collis:

and down to the seventh best or most popular games selling in

William Collis:

April. And, you know, you could argue that these numbers are

William Collis:

good for forbidden West, because it is a console exclusive. And

William Collis:

that's certainly true to some extent. But you do see console

William Collis:

exclusives like say Caribbean and forbidden lands, cracking

William Collis:

the top three, I would argue that horizons are bitten West

William Collis:

should be selling better than it is. And I would argue that

William Collis:

reason is Elden. Right? Because they're really going after the

William Collis:

same consumers. And I think Elden ring has kind of sucked up

William Collis:

the game or Zeitgeist about that phenomenal, you know, largely

William Collis:

single player driven RPG experience. So why did I want to

William Collis:

talk about this, I want to talk about this because this

William Collis:

highlights something to me that I think is coming increasing

William Collis:

problem in our industry, the difficulty of finding launch

William Collis:

windows for games, like let's just be honest, the games

William Collis:

calendar is getting more and more crowded. It used to be I

William Collis:

remember a time when there was a real post-holiday slump, when

William Collis:

nothing really important would launch in February. And now, you

William Collis:

know, you can just look at the launch calendar, you had some

William Collis:

stunning games like horizon and Elven rain coming out in that

William Collis:

time period. And I would also argue, if you were a marketer

William Collis:

working on horizon for bitten West, that February launch

William Collis:

window probably felt pretty safe to you know, I'd rather go up

William Collis:

against something like elven ring and say Call of Duty.

William Collis:

Right. You know, I think you know, there's always going to be

William Collis:

competitors out there. I think elven ring probably felt

William Collis:

relatively safe. And I even see, you know, some intelligent

William Collis:

decisions made around the exact launch timing with horizon

William Collis:

choosing to go out a week before, Eldon rain better to

William Collis:

launch first, if you can. So I think it's a relatively

William Collis:

intelligent and well chosen launch time. And it just shows

William Collis:

the difficulty of even getting a triple A constant title, like

William Collis:

horizon into a calendar, where it can find breathing room to

William Collis:

get the full credit for the excellent game it is, and

William Collis:

candidly get the appreciation it deserves. This is another factor

William Collis:

limiting our industry. It's not just big budgets. It's not just

William Collis:

long, Dev times. It's not just the complexity of launching

William Collis:

triple A games. It's literally how do you find a window to get

William Collis:

your triple A game to breathe in. And I think the conflict

William Collis:

between horizon and Elven ring perfectly illustrates just how

William Collis:

crowded we are as a market and candidly how tough it is for new

William Collis:

or innovative IPs to even find a launch window to break in.

William Collis:

Basically, if you aren't an established triple A game with a

William Collis:

preset launch timing. It's just really hard to find a moment for

William Collis:

you to breathe in the sun. So it's just a fun little story. I

William Collis:

wanted to talk about highlighting, I think a little

William Collis:

bit of a less traveled angle on sales data in our in our games

William Collis:

industry. So I hope you enjoyed this week's office hours and I

William Collis:

look forward to seeing you next week.

Source link https://returndays.com/index.php/2024/01/19/business-of-esports-230-office-hours-game-sales-on-the-decline/?feed_id=42661&_unique_id=65aa514892886

Post a Comment

Previous Post Next Post