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“The industry is a lot healthier than just what NPD is reporting,” says THQ’s Farrell

Saturday, 4th December 2010 14:11 GMT By Stephany Nunneley

Brian Farrell

THQ CEO Brian Farrell has said much of the company’s profits next year will be coming from digital downloads, which are not taken into account when NPD looks at monthly videogame sales.

Speaking in an interview with Gamespot, Farrell said THQ is not “declaring war” on NPD, but the tracking firm doesn’t look at DLC or MMO sales nor iPad/iPod revenue which is a big factor when it comes to publishers’ revenues. Other form factors should be looked at by the industry and investors, not just NPD sales to judge the industry’s decline or rise.

“I’m not being critical of them but it’s just a lot of investors or people who look at the industry and see the NPD box product sales are down,” he said. “Where our point of view is more people are playing games than ever before. And we as an industry need to come up with a different way to look at the industry to capture all those revenue streams.

“Our Steam business is going through the roof, but that’s again, not reported as part of NPD. So I think the industry is a lot healthier than just what NPD is reporting.

“When we look into next year, we’re really pleased with what’s going on with PS3 and 360 hardware sales. We heard some good news over the weekend, too, about Wii sales as well. And all that hardware is going to buy new software. So we think with these emerging businesses, all the online and the unreported things, that plus people buying software for the game machines that they’re buying now, we think 2011 should be a stronger year for the industry.

“And I think with our lineup, I think it’s going to be a particularly good one for us.”

Michael Gallagher, president of the Entertainment Software Association, said over the summer the games industry needs its own form of weekly top ten sales chart, just like film and music. He is of the belief NPD figures only reveal so much to the public and something more transparent is needed.

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8 Comments

  1. AHA-Lambda

    hmmm…idk the industry is in a bad state right now from what I can see when too many games flop and studios close over just one undererforming game released in a bad window.

    Yes I AM still sore vanquish tanked ok? =(

    #1 4 years ago
  2. OlderGamer

    Not to be an ass, and not saying I don’t respect someones opinon on a game, but man I saw vanquish tanking from the get go. I used to say so too, and lots of VG247 folks got their panties in a bunch.

    I mean maybe it is me(wouldn’t be the first time) but I just don’t see what people saw in that game. Maybe I will rent it and give it a play through. Can’t always get the feel for a whole game in a demo.

    #2 4 years ago
  3. DaMan

    I think unlike with Castlevania and Enslaved, it’s too early to laugh at Vanquish, what matters is whether they’ve made profit. besides, ironically the game sold better in America than in Japan.

    notice how with Demon’s Souls they’ve called it a ‘success’, while it would’ve been a disaster for any of the major publishers.

    #3 4 years ago
  4. Crysis

    @3 It had 3 publishers behind that game, so it varies on which region you’re talking about, it’s most likely Atlus who you’re referring to.

    #4 4 years ago
  5. DaMan

    yeah, durr, that’s the one. what’s ‘tanked’ for one game is a success for another. the only things that matter are the target audience and whether you’ve made profit.

    #5 4 years ago
  6. AHA-Lambda

    @2 – no i agree in fact you could see vanquish tanking a mile away; its just that it shouldn’t have =(

    @3 – actually from what i’ve head castlevania done ok by konami’s standards…i think

    #6 4 years ago
  7. DaMan

    1 million shipped copies for a reboot aimed mostly at non-’hardcore’ Castlevania fans, and whose purpose was to revitalize the franchise sales is rather sad I thought.

    #7 4 years ago
  8. bpcgos

    In the end of the day, PC sales(as Farrell mentioned as STEAM sales)will always backing up publisher lives.

    But why publisher were alaways still ignoring the fact that console has reach its saturation point and not profitable??

    Another proof?? Here you go http://www.vg247.com/2010/12/02/digital-offerings-on-pc-contribute-750-million-to-eas-current-revenue/comment-page-1/

    And I have to say it again :

    PC will always be your only trusted and faithful old wife all of the time! Remember that!
    Just give her a fresh bucket of flower, and not the withered one you’ve taken from your ex-girlfriend (aka. game designed for PC properly, not a dumb console port).

    #8 4 years ago

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