Video Game Sales put the Hammer Down on DVDs

[admin]

Lead by titles such as Halo 3, Guitar Hero III, and Rock Band, flagging DVD sales have been outpaced by video games sales so far during the fourth fiscal quarter (Q4) 2007. Halo 3 alone, with an estimated 2.5 million units sold the first day of release, has outsold every top Hollywood DVD on release day except Transformers.

So where is the momentum for gaming coming from?


Discuss "Video Game Sales put the Hammer Down on DVDs" here. Read the article.

[FunkIncubator]

Why is it called a format war when referring to Hi Def DVDs, but healthy competition when discussing gaming platforms? I mean, I can't play Halo on a PS3, nor can I play Gran Turismo on an XBOX. How is that different than Disney or Universal titles being available in only one format?

[aberkowitz]

Why is it called a format war when referring to Hi Def DVDs, but healthy competition when discussing gaming platforms? I mean, I can't play Halo on a PS3, nor can I play Gran Turismo on an XBOX. How is that different than Disney or Universal titles being available in only one format?

That's a really good point, but I think the game manufacturers are starting to come around and realizing that exclusive deals aren't as profitable as being able to sell to everybody. Rockstar is a great example- GTA IV will be available on both platforms. Same thing happened with Resident Evil 4- in fact I thought the PS2 port was much better than the original game for GameCube.

Bungie, the makers of Halo, used to make games for multiple platforms (including PS2) until they were bought by Microsoft. Now that they've been divested, I wouldn't be surprised if somebody did a cashflow analysis and concluded that the company would be much better off making games for multiple platforms.

Game manufacturers have realized over the years that it makes less sense to bet on one platform. The only exceptions are games like GT which are made by the producer of the platform (e.g. Sony).

[Highlander]

So where is the momentum for gaming coming from?

It's winter. Folk tend to get back into gaming at this time of year, when the nights are dark and the temperature drops.

[stratman]

It's winter. Folk tend to get back into gaming at this time of year, when the nights are dark and the temperature drops.

Not in the tropics!

[Tom Andry]

I thought the same thing as I read this in shorts and a t-shirt.

[aberkowitz]

It's supposed to snow in NYC today... *sigh* I'm waiting from the inevitable call from my parents who live on the beach in Florida to tell me how F-ing beautiful it is down there.....

[DavidW]

Why is it called a format war when referring to Hi Def DVDs, but healthy competition when discussing gaming platforms? I mean, I can't play Halo on a PS3, nor can I play Gran Turismo on an XBOX. How is that different than Disney or Universal titles being available in only one format?

For nearly the last 20 years, since the final demise of Betamax in 1988, consumers of prerecorded movies have enjoyed a single format. First the victor of the last format war, VHS, and then as new technological innovation was introduced as the DVD. One could argue that the DVD competed with VHS, but in is more accurate to realize that the difference in technology really made it a replacement. VHS and Beta were nearly identical, based on the same scientific and engineering operating principles, with variations that were minor compared to differences with DVD.

Now the movie industry goes backwards and introduces two nearly identical formats, based on scientific and enginnering operating principles, in the form of Blu-ray and HD-DVD. They are actually more similar than Betamax and VHS were, physically and electronically.

Blu-ray and HD-DVD offer the same audio and video performance to the consumer because they use the same codecs.

What you are saying is true, video game consoles do try to corner markets with formats, but the video game market is moving slowly away from this at present. The slow launch of the PS3 is causing the loss of some exclusive 3rd party titles to the competing consoles.

So the movie industry is returning to old ways after 20 years of letting consumers decide and consumers have come to like this.

Meanwhile, the video game industry, which never left the restricted business model, is seeing some new freedoms that hopefully will continue.

Once you've tasted freedom, you never want to go back to opression.

[BMXTRIX]

This site continually posts random statements downplaying how well HD formats have actually been doing in the first 18 months of their release compared to the DVD format, and then asking for 'neutrality' from studios, which, most people, even those without MBAs, will tell you is a sure fire way to prolong a format war.

The article starts of as factual journalism, then turns into a rant about HD optical discs. This seems like an opportunity to rant, instead of simply focussing on the news.

How about it get moved from the 'INDUSTRY NEWS' section, to the 'OPINION' section of the site if "STILLBORN" is the interpretation of higher rate of sales growth when compared to the DVD format?

The format war sucks, but there is very little doubt at this point, that a decision by WB to pick a side in the format war could effectively end the war. In fact, in most places outside the US, the Blu-ray format is currently doing far better than the HD DVD format - by very significan margins. 19 to 1 in Australia?!? But, sales volumes overseas are lower than here, which makes them 'new'... which is a long way from dead.

I really wish this site would reel in statements that are contrary to basic business strategies. The goal is not free market economics - it is to sell as many discs as possible. This is achieved by eliminating one format, and having a SINGLE format that is supported by the most studios and the most CE manufacturers. This is consistent with what has worked in the world in years past.

It is also consistent that it takes several years for a new format to be introduced which may be a replacement to an older format. With current pricing and quality/speed of existing players, is it really a suprise people are just waiting things out? I know my PS3 is fast, but isn't what I likely will be using in a couple of years, while my HD-A2 is way slower and isn't as easy to use as my $90 DVD player.

The last thing a site dedicated to A/V should be doing is constantly knocking down next generation HD formats - but it seems to be a path this site unfortunately has decided to take.

I, for one, am very disappointed by this very obvious choice, and wish some people would start encouraging a best case outcome to occur sooner, rather than later, for a format.

[mtrycrafts]

I thought the same thing as I read this in shorts and a t-shirt.

Yes, but how large is the market for games down there compared to the balmy rest of the country