The video game industry continues to outperform Hollywood

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Those of us who love video games and the industry that they’re wrapped up in regularly love to cite how it earns more money than other entertainment media. We’ve known for years that the video game industry makes more cash than Hollywood does, and that Big, blockbuster games often rake in more cash than big, blockbuster movies.

And it’s happened again. According to Venture beat, Metal Gear Solid V earned more than double the first-day earnings of the likes of The Avengers: Age of Ultron.

Says Venture Beat:

“Metal Gear Solid V: The Phantom Pain made $179 million globally on its opening day, according to Adobe Digital Index’s new report on gaming trends. Compare that to the blockbuster Avengers: Age of Ultron, which made $84 million globally on its opening day.”

There’s no doubt that videogames are a huge industry, and it’s one that’s seeing substantial growth every year. According to Adobe Analytics, gaming is a bigger industry than most realise.

“The gaming industry is a lot bigger than most marketers realize,” said Tamara Gaffney, principal analyst and director at Adobe in the report. “These games get more social buzz on opening day than most movies do, and the revenue for one of the top games this year outdid the highest-grossing movie start [Harry Potter and the Deathly Hallows Part 2 with $91 million] by nearly double.”

Naturally, the first point of contention is that while yes, games can make more money, they’re reaching fewer people. The average ticket price for a movie in the US is just over $8, where the average game price for a new release is $60 – so far more people are watching movies than are playing games. That’s a given, but it’s actually a positive one for gaming, as that shows there’s room for the market to grow even more.

It’s interesting, however, that they chose Avengers instead of this year’s biggest film by far, Jurassic World, which went on to earn over $500 million in its opening weekend once it had been released globally. There are few games that sell through enough to make that money. Games, especially big blockbuster AAA ones tend to be front-loaded, thanks to pre-orders and the like, doing most of their sales in the first week. Of course there are outliers; games like GTA V, Call of Duty and FIFA sell through in substantial numbers all year round, and they’re the sorts of games that earn billions but they’re the exception.

I think they chose Age of Ultron as comparison because like with Metal Gear Solid V, it ultimately ended up being a disappointment.

Last Updated: October 15, 2015

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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