Videogames outperform Hollywood movies as talent and opportunities converge

Valerie | 30 Sep 2009, 08:55

An article in last weekend’s Observer provides a thought provoking reminder of how far video games have come from the early cathode ray tube-based games of the 1950s.

As Tom Chatfield explains, the sheer sophistication and modern production values of video games today is staggering. From the British-produced Grand Theft Auto IV which grossed $310m (£157m) to secure the title of the most successful entertainment release in history, to Halo 3, which sold 2m copies worldwide on its day of release and the multiplayer phenomenon of online gaming embodied by the World of Warcraft.

Unsurprising then that last year saw the UK video games industry become the country’s most valuable purchased entertainment market, hitting the $£4bn mark for the first time, overtaking DVD and music sales combined, and taking more than four times cinema box office takings. With advances in technology, games have started to transcend the demographic divide to appeal to a wider audience.

Chatfield argues however that we are yet to see the full economic potential of video games and that they are unlikely to become as ubiquitous as cinema, television and recorded music are today for another half century.

But in the meantime, the medium continues to attract new legions of fans – from television producers, writers and actors to directors, musicians and performance artists. There is certainly much buzz and optimism and the sense of innovation that is continuing to break new ground.

The recently published “50 most influential Britons in Technology’ rankings includes several gaming legends, such as c&binet ambassador and head of Microsoft’s Lionhead Studios Peter Molyneux, Electronic Art’s Peter Moore and brothers Sam and Dan Houser, the creative masterminds behind the Grand Theft auto franchise, who are widely acknowledged as among the most influential figures working in the creative industry today.

But clearly, more can be done to sustain this “melting pot of talents and new ideas”.  Despite growing at a spectacular rate over the past two decades, the recession poses significant challenges for the sector. But with consumer behaviour changing rapidly and as new platforms emerge, what analysts believe could become the dominant media channel over coming years may well hold true.