To do that, Microsoft needs to keep appealing to its core gamer fans, mostly men in their 20s, 30s and 40s who count Halo, Call of Duty and Gears of War among their favorite entertainment franchises. But, like Sony with the PlayStation 3, it’s also selling the Xbox 360 to families as an all-in-one entertainment device.
E3, which had events from last Sunday through Thursday, was where many store chains decided what games and gaming systems, and how many of them, to stock for the holiday shopping season. That period is crucial for the industry, which analysts say gets about 40 percent of its revenue in the final three months of the year.
Analyst firm DFC Intelligence estimates that the worldwide video game retail industry will reap revenue of US$59.5 billion this year, down slightly from US$60.4 billion last year and well below the more than US$68 billion in 2008.
Because the industry has yet to fully rebound from the recession, Jesse Divnich, an analyst with Electronic Entertainment Design and Research, called E3 an “inflection point,” with game companies under pressure to impress.
While hardcore gamers have flocked to shooters and sequels with loyal predictability, more “casual” players can be fickle.
Largely responsible for the runaway success of the Wii, the players who dabble in video games as a hobby but not as a lifestyle can’t be expected to spend US$60 every time a new game comes out, even in a better economy. That’s why it’s important for game companies to sell a wide range of entertainment options.
“Something that is new, something that is true innovation, something that unlocks new experiences,” Microsoft’s Durkin said, is something families “are willing to pay for.”
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