News
It’s official: games revenues overtake music at retail
Neil Long Mar 3 2008, 9:34am
Comments (4)
Exclusive figures from ERA reveal that games are also closing in on DVD
Statistics from trade body the Entertainment Retailers’ Association suggest that while gaming is the star performer, music sales on the High Street have been seriously undermined by downloads – and that DVD prices are falling all the time.
As forecast by MCV last year, ERA’s figures show that games software is clearly the second most valuable entertainment market at retail in 2007 – and is snapping at the heels of DVD.
And retailers yet to take advantage of this trend are missing out, according to ERA director general Kim Bayley. “Games have overtaken music massively this year – music revenues are down on last year’s figures and game sales are huge in comparison now,” she told MCV.
“In unit terms music is still important, but in value terms a lot less so.
Games prices hold up a lot better against music and DVD – it won’t be long until games revenue overtakes DVD. In years to come, games and DVD will vie to become the biggest market. That battle will depend on what products are out and how retailers react.”
SPENDING ON ENTERTAINMENT AT RETAIL:
Thanks to the Entertainment Retailers’ Association, here we present the vital statistics from the last three years:
2005:
Video/DVD: £2,196m
Music: £1,839m
Games: £1,345m
Total: £5,380m
2006:
Video/DVD: £2,122m
Music: £1,651m
Games: £1,361m
Total: £5,134m
2007:
Video/DVD: £2,164m
Games: £1,719m
Music: £1,417m
Total: £5,300m
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Comments
“Interesting times.”
Posted by: Zed Zee - Mar 3, 10:30am
Interesting fact that the PS3 combines the future of both markets, by being a 'games' machine and having Blu-Ray (the future of DVD) in its belly as well.
PS3 owners sit in the most comfortable future-proof seat at the moment. It's a shame Sony is not stepping up to the table though.
“well duh...”
Posted by: t8ofyv9-t8 - Mar 3, 12:24pm
Its a bit of a moot point though. Of course games are going to make larger profits than film and music, music CD's and DVD 's don't cost £30-50 a pop.
Its like the whole 'Halo 3 made more money in its first weekend than the new Harry Potter film!! Well of course it did as Harry Potter tickets didn't cost £44.99.
“Re: well duh...”
Posted by: Mark - Mar 3, 12:46pm
@ no 2
It's not a moot point considering this wasn't the case in 2006.
“Re: well duh...”
Posted by: _-MrT-_ - Mar 3, 3:32pm
@2
That logic doesn't really follow through. The fact that a PS3 game costs £49.99 and a ticket to Harry Potter costs £7 means that in likelihood far more people are going to go see Potter than buy a PS3 game. So if gaming can overcome its price barrier then that is telling, isn't it?