Videogames trumping DVDs in Q4
Halo 3 sells more units first day than Shrek the Third
By Susanne Ault -- Video Business, 12/7/2007
DEC. 7 | As the last of the $300 million-grossing films streeted on DVD on Dec. 4 with Walt Disney Studios Home Entertainment’s Pirates of the Caribbean: At World’s End, retailers and wholesalers are mostly buzzing about the wild success of this year’s videogame titles.
For instance, on its first day on shelves on Sept. 25, Halo 3 is estimated to have sold about 2.5 million copies, topping first-day sales approximations for Shrek the Third. Transformers, however, sold more—about 4.5 million DVD copies in its first day. Sales estimations were not yet available for Pirates.
DVD is still considered a hot gift item, believe retail executives, but it doesn’t carry the same wow factor as certain new games—such as Halo 3, Guitar Hero III and Rock Band—that are starting to maximize the capabilities of next-generation consoles.
“The games that are coming out now are starting to take advantage of the new technologies,” Bob Geistman, senior VP of sales and marketing at Ingram Entertainment, said of systems such as Xbox 360, PlayStation 3 and Nintendo Wii. “Guitar Hero and Rock Band—the demand hasn’t slowed down. Weeks after the games launch, demand is as great as it was before, so the consumer base is expanding.”
Mia Snyder, WaxWorks VideoWorks game buyer, adds, “It’s just something different. The games are also mainstream. I’ve had grandparents over 40 telling me they want a Wii. Then there’s my mom who personally has bought more videogames this year than she has in her lifetime. And under my tree, it will be more games than DVD.”
Geistman predicts many consumers can’t afford both the hit games and DVDs and are likely having to prioritize their shopping.
“Intuitively, you think that consumers have a finite amount of money to spend,” he said. “One has to hurt the other. Studios are becoming cognizant of the fact that they need to plan their DVD releases around games” to avoid unnecessary cannibalization.
Video stores, normally a bastion for DVD, also are feeling the videogame heat. Year-to-date, Halo 3 is the best-selling title, period, among game and DVD releases for indie rentailing Video Buyers Group, notes president Ted Engen.
If current trends continue, Engen expects many VBG members will swap out catalog DVD shelf space for videogame space.
“If you’re looking at sheer growth, games are outperforming video,” said Engen. “With the launch of these consoles, the gaming business is really starting to accelerate.”
Comparing fourth-quarter 2007 with the same 2006 period, VBG games sales/rentals are expected to climb 20%, and DVD should lift about 5%.
Several high-profile DVDs are still scheduled to street through to December, possibly giving games a run for their money, including Dec. 11 releases High School Musical 2, Harry Potter and the Order of the Phoenix and The Bourne Ultimatum.
