Future Possibilities

The future of video games isn't one that is very clear but what can be seen is that is growing at a very rapid pace faster than most industries. Growing at an annual rate of 8.6%, the future of video games is endless and the future may hold something like the photo above where we use some sort of head gear and get thrown into the actual game and play it in first person like we see with our eyes everyday.

Future of video games

Citation: Siwek, Stephen E. Video Games in the 21st Century. N.p.: ESA, n.d. PDF.

Sony

                                         

                                                             http://www.wikinvest.com/stock/Sony_(SNE)/Data/Revenue

Sony's revenue has slowly gone up as things were shaky with them last year when there was the big hack of the Playstation Network. In the coming year, Sony predicts that they will be losing some revenue after Q1 2013, but as for this year their revenue had gone up because of their mobile aspect. Sony still had lost revenue in other departments including their video game and entertainment area.
Sony's loss in revenue
Citation: Dent, Steve. "Sony Cuts Q2 2012 Losses to $198 Million, Bumps Revenue to $20.6 Billion Thanks to Mobile." Engadget. Engadget, 1 Nov. 2012. Web. 7 Dec. 2012.

Thesis Proposal

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As time goes on there will always been some form of entertainment for everyone. The biggest out of all of them would be the video game industry and how exactly it has changed the way the economy is now. The massive amounts of different types of game-models, how much they actually make, and just how accessible and available they are for the everyday person. Each of these things help with shaping the economy in a way that no one else seems to notice.

F2P model taken by League of Legends and becomes the most played PC game in the world

Citation:   Schutte, Wybe, and Peter Warman. 2012 Country Summary Report. N.p.: New Zoo, Nov. 2012. PDF.

Impact of the Gaming Industry

http://cdn.ebaumsworld.com/picture/taylorstone2003/EvolutionofVideoGames.png

"The U.S. industry that develops and publishes video game software creates wholly new forms of entertainment for consumers worldwide. The industry also generates sales in the billions of dollars and creates thousands of American jobs. The U.S. interactive entertainment software industry is, and has been, one of the most rapidly growing industries in the United States"- Stephen E. Siwek
The video game industry has made a huge impact on the economy. Being of the fastest growing industries of the 21 century, things aren't what they may seem when it comes to video games. It grew at an annual rate of 16.7% while the economy as a whole only grew 2.8%.

Predicted that game revenues will grow to $70 billion by 2017

Citation: Siwek, Stephen E. Video Games in the 21st Century. N.p.: ESA, n.d. PDF

Prices of Consoles

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The prices of video games consoles has always fluxuated from year to year. With the most recent prices being fairly cheap now. Nintendo's consoles the Wii and the Wii U are priced at $130 and $500  respectively. The price of the Xbox 360 has been lowered also at $250 for their biggest storage.
Sony's Playstation 3 has also dropped down to $250 as the holiday season has arrived and people are looking for gifts to get cheap rather cheaply. Onto handheld gaming devices, the PS Vita is priced at $250 while the 3DS is priced ranging from $160 to $230. What this all means is that the availability has gone up while prices have gone down. This leads to having some form of enterainment for the family while still keeping in the budget of things. As each holiday season comes up every year, prices go down and there is a surplus of consoles for those who wish to buy them all.


Comparison of video game console prices








Citation:   Schutte, Wybe, and Peter Warman. 2012 Country Summary Report. N.p.: New Zoo, Nov. 2012. PDF.

Game Models

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There are many types of game models with the most obvious being three different kinds of models. F2P (Free to Play), subscription and one-time purchase. The chart above shows that in 2010, F2P revenue severely outgrew and still went above the subscription revenue. Things like one-time purchases are going away slowly as time goes on and developers are starting to see how F2P is the future of the video game industries.



Citation: A.    Schutte, Wybe, and Peter Warman. 2012 Country Summary Report. N.p.: New Zoo, Nov. 2012. PDF.

Microsoft

http://news.softpedia.com/newsImage/Microsoft-Dropping-Xbox-360-Price-by-100-Dollars-2.jpg/

"Oct. 18: Microsoft Corp. says Xbox 360 platform revenue fell 24 percent, or $418 million, mostly because of fewer consoles sold and lower revenue from video games software. The year-ago quarter saw the release of "Gears of War 3," with no comparable major releases in the just-ended quarter. That was offset partly by higher revenue from its Xbox Live subscription service."

Microsoft with the halo franchise alone has generated $3,000,000,000 revenue ever since it was introduced with the first Halo on the original Xbox.

 

Microsoft Q4 and full year revenue

Citation:

The Associated Press, -. "How The Video Games Industry Is Faring."
AP Financial News (2012): Newspaper Source Plus. Web. 19 Nov. 2012.

Industry Revenue

(citation below)

Recently there was an Ebay auction for the complete set of 22 game consoles with all of the games for each console. It retails at $1.2 million dollars worth of consoles and games.

(citation below)

The revenue of the gaming industry is one that is slowly climbing up the ladder of the world markets. It had added a value of $4.9 billion to the GDP in 2010. It was reported in 2010 that the gaming and software industry had grown an astonishing 10.6% from 2005-2009 when from 2005-2008 it was
16.7%. It was around this time that the economy had grown 1.4% from 2005-2009 and 2.8% from 2005-2008. There was an annual increase of the gaming and sofware industry by 8.65%.

The employees of the total amount of both direct and indirect went over 120,000. The annual revenue per employee was $89,781. In early 2010 the number of states that had gaming publishers/Developers was 19, the number of locations that were gaming publishers only was 55 while gaming publishers/developers was 56, totaling the amount of locations around the US to 111 with over 32000 employed.Click here for an article of total spending on video games!


Citation: Schutte, Wybe, and Peter Warman. 2012 Country Summary Report. N.p.: New Zoo, Nov. 2012. PDF.

Nintendo

http://cdn.itproportal.com/photos/WiiU-Pad-console_original.jpg

On October 24, 2012; Nintendo states that it compressed its losses in the last six months through September, but casted down its sales and profit forecasts for the full year after its launch of the new Wii U console. Nintendo is going forward with its usual MO for all of their consoles: create a console that appeals to everyone and go back to franchises that are always desired like Zelda and Mario. President of Nintendo of America stated this when asked if the era of game-oriented consoles was over; "To buy into a console, consumers need a very clear, understandable, and persuasive reason, We believe that's games,".

 To find out more about revenue of some nintendo products click Here.

Citation: The Associated Press, -. "How The Video Games Industry Is Faring." AP Financial News (2012): Newspaper Source Plus. Web. 19 Nov. 2012.

 

 

What this Means

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So what exactly does all of this mean when it comes to the economy and video games? Nothing at the present moment because it is still growing each and every year. Some would say that it is slowly changing the world and how it works eventually everything will be done electronically and there will be no need for paper or metal currency anymore as most online games are doing this sort of thing requiring some sort of electronic transferring.

Games: Improving the economy

Citation: Siwek, Stephen E. Video Games in the 21st Century. N.p.: ESA, n.d. PDF.