The Change Mariner

Video Industry Key to Success: Hollywood Hits

Forbes.com:
The video game industry is facing a hardening of the creative arteries as aging gamers' tastes increasingly shift toward sequels and games based on movies, industry participants said this week.

With more and more titles chasing the success of their predecessors and content owners digging deep into their libraries to tap older material for quick fail-proof conversion into games, the industry is faced with a question more serious than rhetorical: What's new?

"The gaming industry will shrink unless we start to see new games," said Toru Iwatani, who created Pac-Man, one of the first video games to become a worldwide hit.

One of the industry's first huge hits, published by Namco Ltd. in 1980, Pac-Man crossed gender lines and became a huge hit with women.

At the Game Developers Conference in San Jose, California, a gathering of industry insiders where the talk is more about how games are made than how they are sold, the dearth of new titles and the increasing cost of developing games was a common theme at keynotes and panel discussions.

The high up-front costs of developing games is also pressuring developers to rely more on sure-fire hits and take less risks on new, innovative titles.

Electronic Arts Inc. , the gaming industry's largest publisher, has perfected the art of getting gamers hooked on yearly releases of sports games and turning out versions of movie hits such as "The Lord of the Rings: The Return of the King" and "Harry Potter: Quidditch World Cup."

EA's U.S. market share in 2004 is more than twice that of its closest competitor, and the company generates more revenue in the December quarter than its closest competitor does in an entire fiscal year, driven in large part by those repeat sports and film titles.

... Despite the proliferation of sequels and licensed games, Pac-man creator Iwatani said that he had seen this happen before during his 20 year-career, and that new and revolutionary new games appear in a two- to three-year cycle.

"It's difficult right now but I expect to see a recovery in a couple years," Iwatani said.

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