I saw a post earlier that I really just disagreed with. "The video game industry has peaked."
Growth has not peaked. The video game industry catered to ages 18 and under until about 5-10 years ago. Slowly.... it has become more accepted for older folks to play games too. So instead of seeing a man reach the age of somewhere between 18-26 and quiting gaming for other "grown up" activities we are seeing a huge growth in gamers who are gettting older WITH MORE MONEY.
At the age of 35 or so there is a huge drop off in the number of gamers. That age threshold is going to keep going up up up. Each year we welcome a new generation of gamers into our midst. By the time we have 75 year old gamers still kickin it you are looking at 40 more years of growth from today.
At 38 I'm still playing also. I don't play as much anymore but still will pick up a game that looks interesting. My son drives the sells in the household and is my tester more often that not. As I get older I find I like games more like Total War than games like Halo but I enjoy both.
the only problem i see is that the VG industry still produces their games for the 15-20 year old crowd. As the gamers get older the games need to change some. for instance eye sight gets worse, reflex response goes down etc. so when you start getting spanked by you son you tend to lose interest in some of the newer games. Just like the industry started making games for women then need to start making games for grandpa's. Less action more thinking. the wii has started to tap this market. xbox, and PS3 need to as well.
I am still playing and I was a child of the 80's. I think a few factors will keep this industry going for some time.
(1) The younger people getting older (shifting demographics up). In the 80's, the number of adults playing games was close to zero. Now it is the fastest growing segment.
(2) Wii is bringing a new consumer into the market... and the entire concept will change the way video games are viewed even by non-core gamers (look at the retirement homes using a Wii now with some people who never even used a computer before).
(3) The renewed focus on family in the US combined with a struggling economy to force people to stay at home... when kids are into video games like they are now, what better way to connect with. The Wii bridges this GAP even better.
(4) Multiplatform ownership... the number of people who own a PC and multiple consoles is growing. In fact, the Wii vs. the Xbox360 / PS3 offer a totally different experience from a gaming perspective... My family has a Wii, XBox360, NDS, and PS2. We also have 2 Macs and 2 PC's. Sure we are the minorty, but the overall trend is following...
So all those game consoles that daddy bought johnny last year for christmas will just gather dust this christmas? Or maybe the money they spent on consoles last year will be placed towards new games this holiday. here's an idea listen to the CC of the CEO for GME and ATVI explain how all this growth stuff works instead of some GS tool that is talking his book.