The end of the year fiscal reports show that video games, Blu-ray and DVD movie sales have consumed major losses in profit over the last year. However, video games outsold both Blu-Ray and DVD movies.
Media Control GfK International, the world largest marketing research center on retail entertainment sales, recently reported that video game retail sales overtook DVD and Blu-ray sales for the first time last year.
The sale of video games grew 20 percent, reaching $32 billion globally, while DVD and Blu-ray increased six percent to $29 billion.
GfK notes the popularity of the Wii has been a driving force for game sales though it has been dually reported that Nintendo has done a poor job marketing its Wii Entertainment system.
The projected numbers that GfK originally thought Blu-ray, DVD and video games would sell this year, fell short.
The reason for the overwhelmingly large divide in sales is partially due to being able to purchase used games from most video game retailers.
Lloyd Brown, 23, an avid video game player from Buffalo, NY, chooses to buy used video games to see if a game is worthy to purchase or not.
“Buying used games, to me is better than buying them new because by the time the game is used, I will have known whether its worth purchasing and playing or whether the game is a waste of time,” Brown said.
GameStop, one of the leading video game retailers, has reported that revenue from used games will reach $2 billion this fiscal year.
The figure represents almost 23 percent of the unstoppable corporation’s revenue, and is $400 million more than the prior year. The Wall Street Journal, reported that about 42 percent of the company’s profits has come from used game sales.
Conversely, the reason for the decline in both DVD and Blu-ray discs are mainly due to the availability of movies on the Internet for download.
More and more people are moving towards digital distribution systems for movies and the popularity of services such as Netflix can be attributed to less DVD sales in stores.
“From my personal experience, the people who had purchased four DVDs a month in the past have moved to these types of services because its a more cost effective and convenient way of maintaining their desire to watch movies at home,” John Amirrezvani of Global Technology Associates said.
Global Technology Associates is a firewall and internet connection company.