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I've bought several games for the Switch for my kids, including Animal Crossings. I don't understand it, but anything to keep them quiet for an hour (or three).

I've bought several games for the Switch for my kids, including Animal Crossings. I don't understand it, but anything to keep them quiet for an hour (or three). One question I have is, is this revenue rate sustainable or it is an unnatural pump that will die out in a couple of years? Once people can go outside without fear I'm thinking that it won't be a long term investment.

snazz 6y ago
It could get a lot of new people to be interested in games. I know some people who never really tried playing video games because they were always busy. When they suddenly got a lot more time at home, they realized that games were enjoyable.
Hokusai 6y ago
> One question I have is, is this revenue rate sustainable or it is an unnatural pump that will die out in a couple of years? The situation is better than that of toiler paper. One human being consumes the same amount of toiler paper during a pandemic that in other circumstances. So, an increase in purchases now means a decrease of purchases in the future. For video games the increase can be real. During a pandemic, and quarantine, people needs to pass the time in some way. Movies, and video games are popular ways of doing so. After the pandemic, thou, the need for recreation will go back to normal with the decrease of available time (corrected upwards by the amount of new players that keep on with the habit and downwards with less available income during a recession).
- hn_check 6y ago
  "One human being consumes the same amount of toiler paper during a pandemic that in other circumstances." Not necessarily at the personal supply level. People aren't going to workplaces, restaurants, third-places, entertainment venues, etc. These places all "shared the load", so to speak.
- dynamite-ready 6y ago
  I can see that being the case, but perhaps the amount of disposable time people currently have to spend with dedicated game systems, will help new users to cultivate a taste for the form that will last beyond the lockdown. At least enough to take a few users away from Netflix and Youtube permanently.
- asdkhadsj 6y ago
  > The situation is better than that of toiler paper. One human being consumes the same amount of toiler paper during a pandemic that in other circumstances. So, an increase in purchases now means a decrease of purchases in the future. Aren't types of toilet paper important too? I would assume the average household is literally going through more toilet paper now than before; since before they were partially using industrial toilet paper at their employers. The paper employers buy is usually not the same types that consumers buy. With that said, I don't doubt we were out of toilet paper due to hoarding. Just adding a little asterisk that it's not purely hoarding.
mey 6y ago
Wife is an Animal Crossing convert entirely due to Covid. She played zero video games on a regular basis before that. I expect she will put it back down as other recreation options become available again, but I doubt she is the only one to pick up a new hobby. This is going to go on long enough for new habits to stick. Animal crossing in particular has exceptionally soft failure modes so it's great for people who aren't traditionally into video games.
- DanielleMolloy 6y ago
  Actually Animal Crossing removes the element of failure deliberately to provide a soothing, un-stressful experience. There isn’t even a counter for how many bugs and fishes you still could catch in the current season. There was a thread recently here about the associated genre Iyashikei. The success of this game should be quite interesting for video game makers who traditionally address and compete for a very narrow market.
  - vorpalhex 6y ago
    Games like Stardew hit this note too. What many so-called "casual"[^1] gamers are after isn't less game but a game that is more focused on having an experience and experiencing things. [^1]: The casual/hardcore gamer distinction is a really weird dichotomy that doesn't make any sense because there's probably a set of axis akin to Bartlet types that more accurately describes videogame consumption
    - DanielleMolloy 6y ago
      Also, both Animal Crossing and Stardew Valley are much deeper and richer games (i.e. not “casual”) than your latest graphics whore zombie shooter. Video game companies should pay attention to the success of these, and also many interactive indie experiences like Firewatch in recent times. Maybe we should find a different description for them than “game” which tends to indicate competitive elements and does not describe sandboxes or interactive narration / exploration very well. Unsure what to call them but people definitely crave them.
trynewideas 6y ago
> is this revenue rate sustainable or it is an unnatural pump that will die out in a couple of years? The revenue rate already isn't sustainable for anyone who isn't Nintendo, Sony, or Microsoft (and as the story notes, Nintendo won the quarter in part by taking enough business this quarter from Sony and Microsoft for them to end _down_ even with some big announcements and releases). There's a real fear in studios that between the pandemic, unemployment spikes, expenses in moving to remote work coming before savings from getting rid of offices, and the broader economic malaise, this represents the last bit of inflation before wallets close for years and the games industry bubble pops for many, many studios.
- username90 6y ago
  Gaming is an inferior good so it doesn't follow the normal market dynamics. When people have less money they can't spend their time doing expensive activities, so they spend more time gaming since it is one of the cheapest ways to spend your time.
  - smabie 6y ago
    100% this. Gaming is like ramen noodles.
IggleSniggle 6y ago
I think it will become a permanent bump, even if the same rate is not entirely sustained. I never watched any movies or tv until I met my partner. It just wasn't a thing I even thought of doing. Now, I suspect I would still watch things on my tv even if we separated. Once you're addicted to sugar, you crave it. Dopamine is habit forming.

snazz 6y ago

It could get a lot of new people to be interested in games. I know some people who never really tried playing video games because they were always busy. When they suddenly got a lot more time at home, they realized that games were enjoyable.

Hokusai 6y ago

> One question I have is, is this revenue rate sustainable or it is an unnatural pump that will die out in a couple of years? The situation is better than that of toiler paper. One human being consumes the same amount of toiler paper during a pandemic that in other circumstances. So, an increase in purchases now means a decrease of purchases in the future. For video games the increase can be real. During a pandemic, and quarantine, people needs to pass the time in some way. Movies, and video games are popular ways of doing so. After the pandemic, thou, the need for recreation will go back to normal with the decrease of available time (corrected upwards by the amount of new players that keep on with the habit and downwards with less available income during a recession).

hn_check 6y ago
"One human being consumes the same amount of toiler paper during a pandemic that in other circumstances." Not necessarily at the personal supply level. People aren't going to workplaces, restaurants, third-places, entertainment venues, etc. These places all "shared the load", so to speak.
dynamite-ready 6y ago
I can see that being the case, but perhaps the amount of disposable time people currently have to spend with dedicated game systems, will help new users to cultivate a taste for the form that will last beyond the lockdown. At least enough to take a few users away from Netflix and Youtube permanently.
asdkhadsj 6y ago
> The situation is better than that of toiler paper. One human being consumes the same amount of toiler paper during a pandemic that in other circumstances. So, an increase in purchases now means a decrease of purchases in the future. Aren't types of toilet paper important too? I would assume the average household is literally going through more toilet paper now than before; since before they were partially using industrial toilet paper at their employers. The paper employers buy is usually not the same types that consumers buy. With that said, I don't doubt we were out of toilet paper due to hoarding. Just adding a little asterisk that it's not purely hoarding.

mey 6y ago

Wife is an Animal Crossing convert entirely due to Covid. She played zero video games on a regular basis before that. I expect she will put it back down as other recreation options become available again, but I doubt she is the only one to pick up a new hobby. This is going to go on long enough for new habits to stick. Animal crossing in particular has exceptionally soft failure modes so it's great for people who aren't traditionally into video games.

DanielleMolloy 6y ago
Actually Animal Crossing removes the element of failure deliberately to provide a soothing, un-stressful experience. There isn’t even a counter for how many bugs and fishes you still could catch in the current season. There was a thread recently here about the associated genre Iyashikei. The success of this game should be quite interesting for video game makers who traditionally address and compete for a very narrow market.
- vorpalhex 6y ago
  Games like Stardew hit this note too. What many so-called "casual"[^1] gamers are after isn't less game but a game that is more focused on having an experience and experiencing things. [^1]: The casual/hardcore gamer distinction is a really weird dichotomy that doesn't make any sense because there's probably a set of axis akin to Bartlet types that more accurately describes videogame consumption
  - DanielleMolloy 6y ago
    Also, both Animal Crossing and Stardew Valley are much deeper and richer games (i.e. not “casual”) than your latest graphics whore zombie shooter. Video game companies should pay attention to the success of these, and also many interactive indie experiences like Firewatch in recent times. Maybe we should find a different description for them than “game” which tends to indicate competitive elements and does not describe sandboxes or interactive narration / exploration very well. Unsure what to call them but people definitely crave them.

trynewideas 6y ago

> is this revenue rate sustainable or it is an unnatural pump that will die out in a couple of years? The revenue rate already isn't sustainable for anyone who isn't Nintendo, Sony, or Microsoft (and as the story notes, Nintendo won the quarter in part by taking enough business this quarter from Sony and Microsoft for them to end _down_ even with some big announcements and releases). There's a real fear in studios that between the pandemic, unemployment spikes, expenses in moving to remote work coming before savings from getting rid of offices, and the broader economic malaise, this represents the last bit of inflation before wallets close for years and the games industry bubble pops for many, many studios.

username90 6y ago
Gaming is an inferior good so it doesn't follow the normal market dynamics. When people have less money they can't spend their time doing expensive activities, so they spend more time gaming since it is one of the cheapest ways to spend your time.
- smabie 6y ago
  100% this. Gaming is like ramen noodles.

IggleSniggle 6y ago

I think it will become a permanent bump, even if the same rate is not entirely sustained. I never watched any movies or tv until I met my partner. It just wasn't a thing I even thought of doing. Now, I suspect I would still watch things on my tv even if we separated. Once you're addicted to sugar, you crave it. Dopamine is habit forming.