The video game industry is looking to change the way games are marketed and released. Historically, key players such as Take-Two, Square Enix Holdings and Sony Corp. have released games late in the year and targeted the holiday gift 
market. But following a period of slowing sales in 2009, these companies plan to begin launching games throughout the calendar year.
According to a recent Wall Street Journal article, the video game industry has grown more complex and expensive. Michael Pachter, an analyst with Wedbush Morgan says “the cost of making games has more than doubled this cycle, the risk of failure is much greater, and the publishers are constantly looking for the right ‘window’ in which to release their games.” Competition is also fierce for a limited audience that is willing or able to pay $60 for an individual game. In general, a game that sells a million copies has traditionally been considered a best seller. But many games do not achieve those kinds of sales.
Each large scale game can now cost between $15 million to $20 million to produce so companies are doing all they can to boost sales. In 2010, several companies will be releasing and marketing their games earlier in the year. Some of these games were delayed from scheduled releases last year. Other games are targeting older audiences with larger disposable income.
As video game marketers consider their ad strategy, they will take note of the recent study from Waggener Edstrom Worldwide which indicates that over 1 in 3 game purchasers is influenced by word of mouth. Advertising and promotions sway 11% of purchases and retail marketing makes the difference for another 23% of purchasers. Contact retailers in your market about the upcoming opportunities for advertising new video game releases.
[Source: Kane Yukari. Game Makers Push Beyond Christmas Wall Street Journal 2.10.10; Fahey, Mike. Word of Mouth Sells the Most Video Games, Kotaku, 12.16.09 ]
Tuesday, Mar 2, 2010
Kathy Crosett