Changes in video games prompt optimism for 2011

RALEIGH, USA: Video game makers leave behind a year of slow sales in 2010, but are hopeful that a new generation of games for tablet computers, mobile phones and Web social networks will spur a return to growth in 2011.

The explosion of mobile games like "Infinity Blade" on iPhone and "Angry Birds" on Android smartphones has lured new consumers into playing games. At the same time, video game company Zynga has turned social network FaceBook into a hugely successful platform with hits like "Farmville" (55 million monthly players) and "CityVille" (44 million and counting).

North American sales of video game hardware, software and accessories are expected to reach $20.9 billion for 2010 by the time all sales are totaled after the holidays. That figure is down four per cent from 2009, according to Jesse Divnich, vice president of Electronic Entertainment Design and Research.

Yet, despite the economic slump that continues to impact gamers' disposable income, industry players expect 2011 to bring a wave of new revenue from items such as downloadable content, mobile games, and in-game micro-transactions.

Ahead at CES

At January's giant International Consumer Electronics Show (CES) in Las Vegas, companies such as Samsung and Verizon will unveil new smartphones and tablet devices to extend the reach of games to more consumers.

"I think one of the big trends of 2011 is cross-platform gameplay, that is, game experiences that are continuous across mobile, television, PC, social media, console and interactive toys," said Jesse Schell, assistant professor of entertainment technology at Carnegie Mellon University.

One reason for optimism is the performance of game sales at the end of 2010. "Call of Duty: Black Ops," for example, sold 8.4 million copies in the U.S. alone in November. Last week, its maker Activision Blizzard Inc  said the game accounted for more than $1 billion in sales.

"Black Ops" is one of a growing number of titles shown in stereoscopic 3D, which should appeal to buyers of new 3D TVs that will be promoted heavily at the winter CES by companies such as Sony, Vizio and Panasonic who cater to gamers.

Sony and Microsoft jumped into the motion controlled game this fall with PlayStation Move and Kinect for Xbox 360, and both are selling strongly and helping the bottom line for the game industry late in 2010.