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Game industry has its own Big Four
Sean Ridgeley - Thursday, April 3rd, 2008 | 12:14PM (PT)


GameStop says four publishers account for most of its sales

Game industry has its own Big Four Image 1

So here's how it works. There are over 40 publishers and manufacturers around the world which help developers get their games to the public, and for a long time, this has been a mutually beneficial relationship.

The problem at the moment though, is that GameStop, one of the world's largest game retailers just reported that last year, 65 percent of their sales came from just four publishers, and guess who they are: Nintendo (21%), Sony (17%), Microsoft (16%) and EA (11%).

This is similar in some ways to the current music industry problem whereby "The Big Four" record companies control much of the industry. This is all very dangerous because, for one, it diminishes the capacity for a multiplicity of voices in the industry, which basically leads to less possibilities, and overall, a less healthy industry overall, also resulting in a lack of variety in experiences for the gamer (theoretically). Two, it becomes harder for new development teams to get their games published because the majority of the industry runs through these four companies, which means they only have so much time and money to spend, and they're probably going to be less willing to spend it on "innovative" games and/or new developers. Not good, not good at all. And with sales up 33 percent, the situation may only be perpetuated.

It's also an unhealthy time for retailers, as GameStop receives significantly more copies of games than do other retailers. Said the company:

 "Due to our strong relationships with the manufacturers of these platforms, we often receive disproportionately large allocations of new release hardware products."

So what's the solution? Well, like with the music industry, we could shift our support to force change, and let the publishers know why we're doing so, thereby opening up the industry more to more publishers, and smaller ones. Just an idea.

 

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Comments:

  • 0 thumbs!
    x_revenge | Apr 3, 08 | quote
    it's truly a shame that people focus on some games and game series rather than finding new stuff, then again, you can never rule out the saying "quality over quantity"...
  • 0 thumbs!
    kspiess | Apr 3, 08 | quote
    I just hope game development doesn't eventually turn into movie development -- basically for movies there are 4 big studios, and with so much money involved, the vast majority of movies don't want to take any risks, and they just follow really conventional formulas. Don't think the same will happen with games, but it'd be a shame if they did.
  • 0 thumbs!
    chautemoc | Apr 3, 08 | quote
    To some extent that has been happening, man. Think about (just for one example) all the RPGs in the last decade or so. More or less the same, and the ones that take chances (Xenosaga) get shot down.
  • 0 thumbs!
    kspiess | Apr 3, 08 | quote
    Ya, its definitely already happening. I just hope it doesn't get way worse.

    I think games are a bit easier to distribute then movies, so hopefully the independents will 'keep things real' and keep the innovations coming.
  • 0 thumbs!
    OmegaFury | Apr 3, 08 | quote
    I hope so too.....
  • 0 thumbs!
    The Supreme Extreme | Apr 4, 08 | quote
    Video Game industry is dying...

    good thing I don't really play video games anymore. I just play my old PS2 and N64 games. =)
  • 0 thumbs!
    chautemoc | Apr 4, 08 | quote
  • 0 thumbs!
    DC Sniper | Apr 10, 08 | quote
    If anthing, it is improving, but people like jack thompson or people who mindlessly believe games=violence are not helping its growth.
  • 0 thumbs!
    chautemoc | Apr 10, 08 | quote
    I dunno about that, I mean, the reason it is the way it is now is largely due to games being so expensive to produce that companies have to merge to survive, right? Certainly seems that way, anyhow. Not healthy. =/
    But hopefully everything will catch up and we'll see a good balance in the future.
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