GTA V won’t save the crumbling video game industry

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Fallingapart

The video game industry is in a bit of troubling. the escalating costs of AAA game development, coupled with flagging sales of the resultant titles has led to many a studio shuttering its doors. It’s really rather depressing. Analysts, whose job it is to talk about these things, believe that not even the possible release of Grand Theft Auto V this year would make things any better.

“I am not confident that it will be out this year, and even if it did, we would still likely see a modest decline in console software sales,” said Colin Sebastian, an analyst at Robert W. Baird & Co to Venturebeat.

Agreeing with him is EEDAR’s Jesse Divnich. “Given the current momentum of the market, I doubt any major releases, even one of GTA V’s size, would push the physical markets back into the positives. The traditional gaming sector is under an enormous amount of downward pressure at the moment, and it will require a strong catalyst to shift that momentum.”

Everyone’s favourite videogame industry prognosticator, Wedbush Securities analyst Michael Pachter believes that GTA V will sell by the tryuckload,accumulating $700 million in sales – but that it would still only amount to “less than 10% of the expected overall software sales this year.” noting that year-on year sales are pretty much in the toilet.

Of course, all this talk is predicated on the game actually releasing this year – something Take 2′ and Rockstar have been tight-lipped about. Rockstar’s parent Take 2 has suggested that the game might see release sometime during the financial year ending March 31, 2013 – but has said little else. There’s been little of the game shown beyond its initial announcement trailer, though it has shown up in a Gamescom sizzle reel – leading to speculation we might see its debut in Germany this year.

Last Updated: July 9, 2012

Geoffrey Tim

Editor. I'm old, grumpy and more than just a little cynical. One day, I found myself in possession of a NES, and a copy of Super Mario Bros 3. It was that game that made me realise that games were more than just toys to idly while away time - they were capable of being masterpieces. I'm here now, looking for more of those masterpieces.

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