Gamespot Examines the State of the Video Game Industry

Gamespot.com recently published an interesting look at the state of the video game industry.

Gamespot collected insight from industry developers as well as Gamespot editors.

Checkout their video montage on what is right and wrong with the industry as well as where the industry will be in five years:



The feature story also included written statements from notable representatives from Microsoft, Sony, and Nintendo.

Cammie Dunaway - Executive VP Sales and Marketing, Nintendo

What's right with the industry?

It's good news that the industry seems to have accepted the idea that games can be for everyone. And because more people than ever are playing games, companies and developers are motivated to create new concepts and fresh approaches. Just look at some of the hits from recent years: Brain training and fitness games are right alongside more traditional fare. This is key for the overall growth and health of the industry.

Phil Spencer - General Manager, Microsoft Game Studios

What's wrong with the industry?

There are too many games, I see, that don't really strive to stretch the envelope creatively. We seem to have hit this glut, to some extent, of people following tried-and-true, existing formulas and not trying to challenge themselves with every release--to really change consumer expectations and to wow people and really delight them.

Jack Tretton - President and CEO, Sony Computer Entertainment America

What will happen in the industry in the next five years?

We'll continue to see further maturation and growth towards the credibility I spoke of earlier. The industry will continue to embrace new innovation and technology at a faster pace than ever before, and we will be less focused on traditional forms of entertainment. Rather, we will push out-of-the-box thinking that focuses on creating a whole new kind of interactive entertainment experience for consumers. The days of being seen as just a toy for kids will be permanently in the rear view mirror.


In today's recession it is vital to examine the video game industry and predict/anticipate trends which will attract consumers and provoke growth within the industry.

Therefore, I will include my own analysis.

What's right with the industry?

The video game industry has always been - and will continue to - attract consumers with an interactive experience unparalleled by any other form of media. Recently, consumers are met with many more media options on video game consoles to create do-all media centers. This has been spurred by easily available content via console networks such as Xbox Live and the Playstation Network by providing alternative media content to the consumer however, costs and limited space hinder vast consumption. Also, video game consumers have met the industry with a diverse library of options pertaining to a particular gamer's tastes.

What's wrong with the industry?

Nonsensical competition, lack of creativity, and trend focus are the most predominate problems facing the industry today. Sony, Microsoft, and Nintendo - and their fans - are too focused on directly competing for exclusive titles and any publisher is quickly persuaded by excessive payouts - DLC for GTA IV on the Xbox 360 is the result of a nearly million dollar deal from Microsoft. However, we will continue to see less console-exclusive titles.

Also, the industry is too focused on recycling formulas that have been previously successful. Current generation video game titles do not seem to match the potential of current consoles and typically revert to a repetitive "open world" gameplay concept.

Finally, the industry is focused too heavily on trends. You only need to look at Microsoft and Sony's E3 motion control announcements to see that consoles focus heavily on what current trends exist in the industry. Before it was plateformers featuring franchise characters, then WWII shooters, and now motion control.

What will happen in the industry in the next five years?

Video games will become more so a shared experience. Much like what we see with the Nintendo Wii, video game demographics will shift to include all ages and may be indistinguishable across genders. This will mean more mainstream and casual games which will ultimately lead to less titles designed for "core" gamers. However, media consolidation will also strengthen between consoles and other media outlets in the same way that Microsoft and Netflix have on the Xbox 360. Be prepared to watch more streaming television, movies, and perhaps downloading music on your game console.