Kotaku: cha-ching

Best Buy Raking In Gamer Dough

Mark Wilson — Wed, 19 Dec 2007 12:20:05 MST

Best Buy's third quarter profits were up 52% from last year, according to the company. So what made all that money? Yeah, you've probably already guessed it since we're writing about the news here. Apparently big ticket purchases drove the earnings, including game consoles (along with notebook computers, nav devices and flat-panel tvs).

We don't know just how greatly game consoles affected Best Buy's profits, but seeing as they surely lead (even if indirectly) to more television sales, BB has to be pretty happy with the state of the gaming industry at the moment. How many of you picked up big screen or HDTVs primarily for gaming?

Best Buy Q3 profit up 52% on strong game sales [gamesindustry] [image: Improve Anywhere]

Second Life Transactions Equate to $1.3 Million Daily

Mark Wilson — Tue, 07 Aug 2007 11:40:50 MDT

According to Lindan Lab CEO Philip Rosedale, all Second Life transactions, from trading to buying/selling, total the equivalent of $1.3 million in US currency exchanged daily—or an average of $6.50 per user per day. To scale this even more with the Kotakulator: if WoW implemented a cash-based economy at the same spending average, their transactions would total $58.5 million per day. Second Life money might not be real money, but a lot of users have bought into it.

And all I can say is, that's a lot of cash to spend on pixel penises.

Second Life merchants estimated to rake-in over $1.3 million total every day [videogamesblogger]

Why $50 Games Are the New Average, $60 Here for Good

Mark Wilson — Wed, 25 Jul 2007 11:40:55 MDT

We all knew that the first time we broke down and spent $60 on a game, the floodgates would open and we would atone our sin at the checkout for th rest of our lives. We admitted that the companies had the power, and we were but weak, desperate gamers itching for a fix of HD graphics. Next Generation has actually done the math behind that sick feeling in your stomach, confirming that $60 is the new $50, and that $50+ is the new average.

Their conclusions:

1. Prior to 2007, the average prices for the top 20 games was around $40-$43.
2. During the first half of 2007, prices for the top 20 games has been around $46-$49, without including Guitar Hero II. With Guitar Hero II, included prices are measurably above $50.
3. As the Xbox 360 library expands, it will claim more and more high-priced games in the top 20 list.
4. As Wii games replace PlayStation 2 games in the charts, it will keep the floor of console game prices right at $50.
5. The last two points will together force the average price of top selling games well above $50 in the near future.
6. The only downward pressure on average game prices is coming from the Nintendo DS.

They argue that GHII and Gears of War were the first $60+ games to up the ante in the average price of the top 20 games, but as of 2007 the charts have flooded with $60 titles continuing the price growth.

In the past few months, just the top 10 titles have represented around 30% of all software sales. So in other words, every $60 game in the top 10 has a massive impact on averages—with the only effective counterbalance being $35 titles from the DS.

How Game Prices Are Shooting Higher [nextgeneration]