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May 2004 | Vol. III - No. 5

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Video Games: An Endless Horizon Comes Into View

By: Scott Ferguson
5/1/2004

See TDmonthly´s 2005 Lists of Top Selling Video Games

There is no doubt that the video gaming population is increasing exponentially as a component of the Toy and Hobby industry (roughly one third, at present, according to NPD Funworld), and a major factor in popular entertainment in general. TIA puts U. S. Video Games 2002 revenues at 10.3 billion and 2003 saw the introduction of several new editions of popular games that dramatically up the ante for creativity, graphics and play action facility.

The synergy of licensed content deals, such as the recent Marvel Entertainment and Electronic Arts proposed new generation of fighting video games, combines what were once totally separate entertainment market segments (EA has granted Marvel the exclusive rights as worldwide licensing agent for all consumer products and media licensing for the new EA heroes. Marvel will publish new comic books introducing these EA characters). And this is likely to be only the beginning of such “mergers” between the video game and toy and hobby industries. The ongoing “age compression" trend of children outgrowing traditional toys at earlier ages in favor of more sophisticated pursuits, including electronic games, has generated much “movement” in both of these industries.

For example, manufacturers have dramatically lowered their price points, resulting in new releases like Radica’s Genesis and Jakks Pacific’s TV Games. Both products reduce the cost of video gaming to the level of popular toy purchases, delivering five video games for as little as $20 in units that plug directly into televisions. These units permit software companies to license older video games that wouldn’t sell on a more expensive platform to today’s generation of “age compressed” kids, who want to play games originally designed for older age brackets.

Recycling these proven titles to new generations of gamers is less costly than developing new games and creates multi-generational continuity within the gaming community. Parents are more likely to purchase their favorite games for their kids, especially at bundled price points. It’s likely that software companies will increasingly target the toy industry’s retail outlets for new inroads to younger generations of gamers. Plus, the new generation of Gamecube, PlayStation 2 and Xbox systems have dropped to under $200, making them substantially more affordable for consumers markets of all ages.

And while game formats for PC and the various game box and console systems have dominated the field, online gaming has stepped into the breach with both free and “pay” versions. As the online sites for popular games proliferate, there will be more room for creativity as the games become like modern-day soap operas, where storylines can be expanded and characters can “live” on or “die off.”

NPD Funworld reports that Microsoft China President Tang Jun will take over one of the top posts at Shanda, ´s biggest online game service company. Insiders say Tang has eyed work in a domestic online game company for some time now, to play out his strong points in R&D, service and marketing. The introduction of Websites that offer free games “…takes it one step further and lets (gamers) be a part of a larger community and role-play with 700,000 other people,” according to Richard Rosenblatt, chief executive of Supernation, LLC, parent company of the Superdudes.net site.

With more emphasis on cross-medium marketing via licensing and concurrent productions to websites like Neopets.com where kids (especially young girls, who are not yet targeted by many game manufacturers) can interact with each other in a virtual world that simulates the daily routines in the real world, the end of this video gaming road is way beyond where our eyes can see, though some things are quite clear: The video game and toy industries are more closely connected than we have ever seen them, money once lost to the video game industry is beginning to make its way back to the toy industry, and children who play video games seem to be getting younger and younger.

TDmonthly´s Lists of Top Selling Video Games (2005):

TOP 20 BEST SELLING VIDEO GAMES
TOP 10 VIDEO GAME CONSOLE ACCESSORIES

Top Ten Video Game Genres by Platform:

TOP 10 PS2 VIDEO GAME GENRES
TOP 10 GAMECUBE VIDEO GAME GENRES
TOP 10 XBOX VIDEO GAME GENRES
TOP 10 NINTENDO 64 VIDEO GAME GENRES
TOP 10 PLAYSTATION VIDEO GAME GENRES

Writer's Bio: Scott Ferguson is a writer, composer and family man. Since graduating from Oberlin College, Scott has seen his music in films and commercials, won awards for his copywriting/composing for various advertising clients and received a Grammy-nomination for his music production. Read more articles by this author