Invoke: Generative AI for Game Development

Invoke: Generative AI for Game Development

Overview Artificial Intelligence (AI) has been around as long as the game industry.  However, in the past 2 years there has been an explosion of interest in generative AI (GenAI).  Generative AI is focused on creating content.  By taking existing data and analyzing it, GenAI can produce new content customized to user prompts. Long term, GenAI will impact all industries, but it already has major applications for any content creation inclu.....
Video Game Industry Must Deal With Shift in Sony’s PlayStation Strategy

Video Game Industry Must Deal With Shift in Sony’s PlayStation Strategy

The video game sector’s woes continue.  The news of layoffs, shutdowns, AAA game title delays were added to by the news from both Sony and Nintendo that reported lower than expected sales and lowered forecasts for the coming year.  While the shortfalls had been previously expected by DFC, the new results have resulted in DFC Intelligence .....
Video Game Console Software Declines in 2024

Video Game Console Software Declines in 2024

The latest DFC Intelligence forecasts for the 2024/2025 video game industry have been lowered with an expected decline of 4% in console software revenue for 2024, with limited growth in 2025.  The decline is due to a number of factors including declining sales of PlayStation 5 and the end of life for the Nintendo Switch generation.   DFC expects console software revenue in 2024 to be $36 billi.....
PlayStation 5 Sales Disappoint

PlayStation 5 Sales Disappoint

For the fiscal year ending 3/31/2024 Sony Group (NYSE: SONY) reported that its Games and Network Services division had revenue of ¥4,267,734 (about $27 billion), up 17% over the previous fiscal year.  However, for the fourth quarter revenue was flat compared to the previous year at ¥1,097,331 (about $7 billion). For the full fiscal year, Sony sold 20.8 million PlayStation 5 units, below its previous estimate of 25 million (lowered to 21 million in February).  Hardware sales.....
Disney/Epic Partnership will be Major Industry Growth Driver

Disney/Epic Partnership will be Major Industry Growth Driver

On February 7, The Walt Disney Company announced they were investing $1.5 billion in Epic Games as part of a multiyear project to create open games and an entertainment universe.  DFC expects this to be a core driver of one of the biggest new growth areas for the video game industry. Overview The $1.5 billion investment from Disney is the latest in a long line of companies investing in Epic.  China giant Tencent owns a 40% stake in Epic from a 20.....
Cloud Games Drive Industry Growth

Cloud Games Drive Industry Growth

DFC Intelligence believes that game streaming and cloud delivery will be one of the most important growth drivers for video games over the next several years. Streaming will enhance high-end client games and offer new ways for titles to expand over time and generate revenue on an ongoing basis.  In addition, cloud delivery is actually expected to increase hardware sales.  Overall DFC estimates that worldwide revenue from cloud games will reach $27 billion by 2027.  .....
2023 Sees the Video Game Industry in Transition

2023 Sees the Video Game Industry in Transition

So far 2023 has been a stagnant year for the video game industry.  DFC Intelligence forecasts that worldwide revenue for PC and console games will remain flat for the year at $74 billion.  However, from a strategic perspective the industry is undergoing a remarkable business model transition. As large publishers focus on live services there is growing potential for smaller publishers and developers. Living Games Redefine Launch Strategies Heading in.....

Microsoft Activision Blizzard Ushers in New Era for Game Industry

The completion of the Microsoft acquisition of Activision Blizzard launches a new era for the video game industry.   After years of struggle Microsoft has bought itself a position as a leading industry force.  The overall impact will be huge but remains uncertain.  However, we can start sketching out the major players and how this battle for market control is likely to play out. Microsoft is Now Largest Video Game Publisher In recen.....