Video Game revenue is up 18% from 2017, totaling $43.8 billion. According to the Entertainment Software Association and The NPD Group, this figure is high enough to pass the total recorded revenues from the film industry in 2018.
VIDEO GAMES TAKE THE TOP SPOT
According to Deadline Hollywood, the film industry had a record year in 2018, posting over $41.7 billion in box office revenue and breaking the 40 billion dollar mark for only the second time in history.
Even with its historic year, the film industry just can’t keep up with video games, and it’s not just video games that put video game revenue over its Hollywood brother. Total peripheral and hardware sales, such as mice and keyboards, grew over 15% from $6.5B to $7.5B in 2018. This surge helped video game revenue break into the top spot.
VIDEO GAMES ARE NOW SERIOUS COMPETITORS TO TV AND MOVIES
Netflix CEO made waves in its latest quarterly report, admitting that video games (mentioning Fortnite in particular) are a bigger threat to Netflix than HBO or other streaming services. According to the American Time Use Survey from the US Department of Labor, more people are spending more time playing video games than they are watching TV.
Netflix, a company who depends on subscribers to consume content and stay subscribed, believes that video games are pulling time away from their platform, ultimately jeopardizing that individual’s subscription fee. If people are gaming more and watching TV less, they are less likely to continue subscribing to Netflix or other streaming platforms.
Netflix has tried to get in front of this trend before. Last year, Netflix released Telltale’s Minecraft: Story Mode on the streaming service. Additionally, before Telltale’s demise last September, they were working on a confirmed Stranger Things game in partnership with the streaming giant. After Telltale’s shutdown, Netflix told Polygon that they were “in the process of evaluating other options for bringing the Stranger Things universe to life in an interactive medium.”
WILL NETFLIX ENTER THE GAME STREAMING BUSINESS?
As of now, all signs point to no. Despite looking for a new studio to develop a Stranger Things IP, Netflix seems uninterested in entering the game streaming market. While Microsoft is coming closer to the title of “Video Game Netflix” with its fantastic XBOX Game Pass, Netflix seems content to dabble in interactive content like Minecraft: Story Mode and the newly-released Black Mirror: Bandersnatch.
Image VIA: Epic Games