Video Game Industry vs Film Industry in the World of Entertainment

In the last few decades, the world of entertainment has developed rapidly. Two industries that dominate global entertainment are the video game industry and the film industry. Both have great appeal to people around the world, but they also have different characteristics, advantages and challenges. This article will discuss the comparison between the video game industry vs movie industry, including how the two industries compete and contribute to the world of entertainment. The video game gaming sector since the last 8 years until now has achieved greater profits than the music and film industries combined.

Video game revenue reached its peak since the end of 2018 with profits of around USD 43.8 billion, up an average of 18 percent from previous years. This surpassed projected global box office totals for the film industry, according to data released by the Entertainment Software Association and The NPD Group.

Video games have become a new source of entertainment for a generation and that is something that has the power of new media, as Netflix CEO Reed Hastings fears. In the company's shareholder letter, Netflix said that games like Fortnite and PUBG posed a greater threat to its business than HBO and similar channels.

Read More: Indonesia's Gaming Industry: The Importance of Localization for International Developers

Development of the Video Game Industry

The video game industry has experienced tremendous growth since its inception. If in the beginning video games were just simple games with limited graphics, now video games have turned into very complex and fascinating entertainment. One of the biggest leaps in the world of video games occurred in the 1990s and 2000s, where technology advanced rapidly, allowing video games to become more realistic and interactive.

Modern games are no longer just games, but rather immersive works of art with emotional stories, stunning graphics, and highly interactive playability. For example, games like The Last of Us or Red Dead Redemption 2 have been recognized as cinematic masterpieces on par with Hollywood films.

The video game industry is growing not only in terms of content quality but also in business. According to several reports, the video game industry has surpassed the film industry in terms of global revenue. By 2021, global revenues from the video game industry were expected to reach more than $180 billion, far surpassing global box office revenues of around $40 billion.

Development of the Film Industry

Meanwhile, the film industry also has a long and glorious history. From the silent film era to the digital film era, the film industry has provided immersive entertainment for people around the world. Iconic films such as The Godfather, Star Wars, and Titanic have made history as part of popular culture.

The film industry has the unique ability to tell stories in a shorter amount of time compared to video games. A film is usually around 90 to 180 minutes long, providing a dense and immersive cinematic experience. As a visual art form, films have the power to convey emotions through a combination of acting, cinematography, music, and dialogue.

Even though box office revenues are not as big as video game revenues, films are still one of the main pillars of entertainment. Prestigious awards such as the Academy Awards (Oscars) show how much influence the film industry has on global culture. Additionally, the film industry continues to grow with streaming platforms such as Netflix, Disney+, and Amazon Prime, which are changing the way we enjoy films.

Comparison in Terms of Income

One of the most important aspects in comparing the video game industry and the film industry is revenue. As previously mentioned, the income from the video game industry is currently greater than that of the film industry. One of the main reasons for this is the different business models. Video games are not just sold as one-time products. In recent years, many game developers have adopted a live-service model where players can purchase additional content, such as skins, DLC (Downloadable Content), or even monthly subscriptions. An example is a game like Fortnite, which despite being free to play, generates billions of dollars through in-game purchases.

On the other hand, the film industry depends on box office revenues, broadcast rights distribution, and film sales. However, with the advent of streaming services, revenue from films is more spread across multiple distribution channels, making it more difficult to achieve large revenues from a single source as is typically the case with video games.

User Experience: Interaction vs Passive

One of the fundamental differences between the video game industry and the film industry is how users (viewers or players) interact with the media. Video games offer interactions that films don't. Video game players are actively involved in the story and action, often influencing the outcome of the game through the decisions they make.

This interactivity creates a more immersive and personalized experience for players. They not only watch but also "live" in the world of the game. For example, in the game The Witcher 3: Wild Hunt, the player has complete control over the actions of the main character, which affects the storyline and outcome of the game.

In contrast, films are a passive form of entertainment. The audience only watches a predetermined story without having any control over the course of the story. However, this does not mean films are less interesting. Films have the ability to transport audiences into the world created by the filmmaker through beautiful visuals and a strong narrative.

Challenges Facing Both Industries

Both the video game and film industries face their own challenges in maintaining relevance in the modern era. One of the biggest challenges for the film industry is how to maintain box office revenues in the streaming era. Many viewers prefer to watch films at home via streaming platforms, which has resulted in a decline in ticket sales in cinemas.

The film industry also faces challenges in terms of content authenticity. Many films produced today are sequels, reboots, or adaptations of existing franchises. This makes the audience sometimes feel bored with the lack of new ideas. Meanwhile, the video game industry faces challenges in terms of gaming addiction and controversies related to microtransactions. Many critics have highlighted the free-to-play business model as relying on in-game purchases, which can encourage wasteful or addictive behavior in young players. Apart from that, there is also the issue of toxicity in online gaming communities, which can ruin the gaming experience.

The Future of the Video Game and Film Industries

While both industries have their challenges, the future looks bright for both. The video game industry continues to innovate with technologies such as virtual reality (VR) and augmented reality (AR), which will change the way we play games. With this technology, players will feel more physically and emotionally connected to the game world.

On the other hand, the film industry will likely continue to explore new ways to tell stories. Streaming platforms have opened the door for independent filmmakers to showcase their work to a wider audience. Additionally, films with interactive formats, such as Netflix's Black Mirror: Bandersnatch, show that films can also begin to adapt to elements of interactivity, which is a major strength of video games.

When comparing the video game industry and the film industry, it is clear that both of these industries have an important role in the world of entertainment. Video games offer immersive interactive experiences, while films provide cinematic and visually stunning entertainment. Both provide different and unique experiences for audiences and continue to innovate to maintain their appeal in the future.

Ultimately, neither the video game industry nor the film industry competes to replace each other; rather, they complement each other as part of the global entertainment ecosystem. Each has loyal fans, and as long as both continue to adapt to changing technology and audience preferences, they will continue to grow and thrive in the future.

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