As revenues generated by the global gaming and film industries continue to climb amid a constant churn of box-office-winning titles, we take a look which medium holds the keys to the entertainment kingdom.<\/p>\n
According to a new report by NPD group, spending on video games and video game content in the US hit $2.88 billion in Q2 2012, versus the total spend of $4.5 billion recorded for the same period in 2011<\/a>.<\/p>\n Despite the continued posting of losses in the US market, according to a Reuters report<\/a>, the gaming industry is projected to hit $70 billion, globally, up from $65 billion in 2011.<\/p>\n Adding the sale of mobile games on smartphones and tablets, which show continued growth, the total value of the global video game industry is projected to be $78.5 billion for 2012.<\/p>\n Citing DFC Intelligence figures, Reuters reported in June that revenue from global retail software sales (physical game sales) is likely to drop to $28 billion, down from $29.5 billion in 2011.<\/p>\n Online revenue, however – including digital delivery, subscriptions and Facebook games – are expected to rise to $24 billion, up from $18 billion in 2011.<\/p>\n Locally, according to figures published my market research firm, Gfk, the South African games industry showed booming growth, contributing R1.7 billion (just under $210 million) in 2011.<\/p>\n As many as 3.86 million games were sold in South Africa in 2011. In comparison, 3.48 million games were sold it 2010, and 3.64 million in 2008.<\/p>\n Games vs Movies<\/strong><\/p>\n When looking at the global movie industry, the Global Movie Production and Distribution report<\/a> compiled by market research firm, IBISWorld, finds that movies still outweighs its gaming rival by some margin.<\/p>\n In 2012, the global movie production and distribution industry is projected to generate revenue of $126.8 billion, showing annualised growth of 0.8% for the past five years.<\/p>\n This figure takes into account not only US-based Hollywood – but also the booming film industries in India (“Bollywood”) and Nigeria (“Nollywood”) as well as Russia and emerging countries, including Latin America, Asia and China.<\/p>\n When looking at a market like the US, where gaming and film are matured and cemented entertainment media, the video games industry flexes its revenue-accruing muscles.<\/p>\n In the US, gaming generated $17.02 billion (\u00b1R130 billion) in 2011, according to the NPD Group, while movie sales in the US generated $9.42 billion (\u00b1R72 billion) according to The-Numbers.com.<\/p>\n Looking at South Africa, physical game sales have overtaken local box-office ticket sales, according to GfK.<\/p>\n In 2011, almost 3.9 million physical games were sold, locally, generating over R900 million in revenue, surpassing movie ticket sales, pegged at R788 million.<\/p>\n Top grossing entertainment<\/strong><\/p>\n According to data from analyst group M2 Research<\/a>, the average budget to develop a current-generation multi-platform video game ranges between $18- and $28-million.<\/p>\n This figure can balloon depending on the profile of the game, with high-profile games such as Grand Theft Auto IV costing as much as $100 million to develop.<\/p>\n When looking at movies, budgets for films usually start around the same figure, averaging around $120- to $150-million, with big-budget films reaching as high as $300 million (and low-budget movies going as low as $30 million).<\/p>\n It’s worth noting that this figure does not include marketing and distribution, which can extend into the tens of millions of dollars as well.<\/p>\n