Following up on yesterday’s debate, I wanted to highlite to a few more relevant datapoints:
"The video game industry enjoyed record sales in 2004, despite a
shortage of game consoles over the holiday season, according to figures
The data from NPD Funworld, a market research firm, showed that
United States sales of video game consoles, portable devices and the
games made for those platforms were $9.9 billion in 2004. That figure
is slightly below the overall sales figure of $10 billion in 2003.
However, the 2004 figure does not yet include sales of games for
personal computers. When those sales are included in a report due in
the next few days, overall sales for the year will be a record, NPD
The 2004 sales include a surge in sales of games for hand-held
devices, which hit $1 billion in 2004, up from $903 million in 2003.
Over all, sales of games for consoles and portable devices was $6.2
billion. Sales of games for personal computers were $700 million from
January through November, with full-year figures expected soon."
This is another example of a new media taking money and time from consumers to the detriment of older media (newspapers and magazines, television and terrestrial radio, CDs, movie theatres, VHS tapes).
Video Game Industry Sales Reach Record Pace in 2004
By MATT RICHTEL
NYT, January 19, 2005
My friend Cody Willard is a hedge fund manager, focused on telecom and technology. He and I had an interesting public debate yesterday, on P2P, downloading and the music industry.
This was originally published on the (subscription only) RealMoney.com, but is reproduced here with permission. It got enough positive feedback that I thought Big Picture readers might find it intriguing. For your reading pleasure, Me vs. Cody. Enjoy!
The effects of piracy on the economy and the world are just getting started.
Music company EMI told investors today that it would miss sales
projections for the year by about 9%. Trading in England, the stock took a huge
hit on the news, wiping out billions of dollars of value.
Music content sales such as records, tapes and CDs have long trended with the
broader economies. With global economies steadily growing the last couple of
years, the music business should have been on fire. Alas, that is not the case,
and the single biggest reason is piracy.