Media industries

What does the UKIE report reveal about the value and growth of the video games industry?

The UKIE (The Association for UK Interactive Entertainment) suggests that the UK consumer game software market was valued at £4.28 billion in 2021, representing an 11.4% increase from £3.84 billion in 2019. However, some sectors declined, with digital console games dropping by 5.59% to £1.65 billion and digital PC revenues falling by 7.02% to £620 million. This decline was partly due to the absence of major releases like Animal Crossing: New Horizons and The Last of Us Part II, highlighting how key titles significantly influence industry performance.

How has the video games industry developed over time?

The video games industry is relatively young compared to traditional media such as film and television, but it has grown rapidly since the 1970s. Its “golden age” occurred between 1978 and 1983, when combined US arcade and home video game revenue reached $11.8 billion, surpassing both the movie and music industries. However, the market crashed by 1985 due to oversaturation, poor-quality games, and lack of regulation, reducing its value to $100 million. Since then, the industry has recovered and expanded globally, supported by improved technology, faster internet, and better regulation, making it both culturally and economically significant.

What is Animal Crossing: New Horizons and how does its gameplay work?

Animal Crossing: New Horizons is a life simulation game developed for the Nintendo Switch where players build and develop a community on a deserted island. The game has minimal structured objectives, allowing players to progress at their own pace by collecting resources, crafting items, and interacting with characters. It operates in real time using a circadian rhythm system, meaning in-game events correspond to the player’s real-world time, creating a more immersive and personalised experience.

Why is Animal Crossing: New Horizons appealing to a wide audience?

The game appeals to both younger and older audiences due to its accessibility, lack of complex barriers, and calming gameplay. During the COVID-19 pandemic, it became particularly popular as it provided a sense of routine, creativity, and social interaction, helping to reduce feelings of loneliness. Its slow-paced, non-violent nature and emphasis on creativity make it inclusive and suitable for a broad demographic.

What multiplayer and social features does the game include?

Animal Crossing: New Horizons primarily focuses on single-player gameplay but includes several multiplayer options. Party Play allows up to four players to share one console, while Wireless Play enables up to eight players to connect locally using separate devices without internet access. Online Play allows players to visit each other’s islands globally, but this requires a paid Nintendo Online subscription. These features encourage social interaction and community-building within the game.

How does Animal Crossing: New Horizons generate revenue and differ from other games?

Unlike many modern games, Animal Crossing: New Horizons does not include microtransactions or loot boxes, meaning players cannot pay to progress faster. Instead, the game encourages patience by requiring players to wait for real-time developments. However, revenue is generated through other means, such as the purchase of amiibo cards to unlock specific characters and subscriptions for online play. This model promotes a more ethical and family-friendly approach to monetisation.

How is Animal Crossing: New Horizons distributed and what platform is it available on?

The game is exclusive to the Nintendo Switch platform, including the Switch Lite, demonstrating platform exclusivity as a key industry strategy. It is distributed both physically as a cartridge and digitally via download codes. Nintendo also released a special edition Switch themed around the game, showing how hardware and software integration can boost sales and brand loyalty.

How was Animal Crossing: New Horizons received by critics and the industry?

The game has been highly successful both commercially and critically, ranking as the 13th best-selling game of all time. It received strong reviews, such as 4.8/5 on Amazon and 90/100 on Metacritic. It has also won multiple awards, including BAFTAs for “Game Beyond Entertainment” and “Best Multiplayer” in 2021, as well as recognition at the Golden Joystick Awards and The Game Awards. This highlights its cultural impact and industry significance.

Define the term vertically integrated?

A single company owns multiple stages of the production and distribution process for media content, from creation (production studios) to delivery (cinema chains, TV channels, streaming services, merchandise).

For example, Nintendo has a: e-shop, consoles, games, cards

What is digitally convergent media?

Digital convergence in media is the merging of different technologies, platforms, and content types (like text, audio, video) into single, interconnected digital devices and services, driven by the internet, allowing users to access diverse media (news, films, games, social media) from one device, like a smartphone, fundamentally changing how we create, distribute, and consume media.

What is a prosumer and examples?

This term coined by Toffler, refers to individuals who do not just passively consume media, but also actively create, produce, remix, or customize content.

For example, consumers who record and post themselves playing a video game and therefore, will profit off of this.

What game consoles have Nintendo created?

Nintendo Entertainment System (NES)

Game Boy

Super Nintendo (SNES)

Nintendo 64

GameCube

Wii

DS

3DS

Hybrid Nintendo Switch