Archive for August, 2007
Common myths about the video game industry.
Common myths about the video game industry.
By Tuan Pham (Contributing writer)
Whenever we chat with our friends in the game industry, there are a few common gripes that always appear. No matter if a development group is large or small, major issues always crop up. This isn’t just talking about lack of pizza or Chinese during Crunch Time; these are pretty serious.
1) Only young male teenagers or college students are into video gaming.
According to the Entertainment Software Association (ESA), the average gamer is 33 years old and has been playing games for nearly 12 years. In fact, 38 percent of all gamers are female.
In fact, serious gaming, a genre in the whole video game industry, is dedicated to using video games as a solution in the fields of health care, education, training and public policy. This wildly deviates from the myth of all gamers are single males who hang out at the local GameStop or Best Buy.
2) Being in the video game industry is just like printing money. There’s a lot of it out there and everyone involved gets rich.
While video game sales are reaching record highs ($7.4 billion in 2006), not everyone is successful. With the release of every blockbuster, such as World of Warcraft, Halo and Grand Theft Auto, there are at least hundreds of titles that end up collecting dust on the store shelves.
3) Only games that are successful are violent bloodbaths.
In 2005, only 15 percent of all game sales were rated M for Mature by the Entertainment Software Rating Board, or ESRB. While action games do dominate the market to a degree, there are legions of puzzle, childrens’, sports and casual games that are stocked on today’s shelves.
4) Only established franchises or massively multiplayer online role playing games are successful in today’s market.
While franchises such as Madden, Halo and Grand Theft Auto and MMORPGs such as World of Warcraft and Lord of the Rings Online dominate the headlines, there are other titles who have done well in the market. Take a look at http://en.wikipedia.org/wiki/List_of_best-selling_video_games for a list of titles which sold more than 1 million copies. There’s a few that might be very suprising.
Last year, the eighth best selling game in the U.S. was Brain Age, a brain training game for the Nintendo DS. It sold even more copies in Japan. This brain-teasing serious game forces a person to take three educational tests each day to lessen mind fatigue over time. The follow-up, which has already shipped in Japan, will be released shortly in the U.S.
5) Staffing video game companies is cakewalk.
The pool of applicants for video game companies is extremely high right now. Schools are starting to tailor create game design degrees and people in the current generation have grown up with video gaming. However, there is a massive need for established project managers who have worked in high-stress, deadline-based environments as well as raw talent to think of the new games of tomorrow.
While degrees in game design or graphic design are valuable, one of the most important things to have is a solid portfolio of work when applying to game developer. Also, a major plus is experience in the software field in general.
As we chat with our contacts in the field, most of them do not have a game design degree. Some hold a degree in Computer Science, some in Liberal Arts, some that don’t even have college training. But, they are successful in their career.
Breaking into the industry has its challenges. Most, if not all, are surmountable.
Add comment August 17, 2007
Are there skilled industry professionals looking for work
Semper sent out the below to a large group of our database. The responses we received were quite interesting and we felt important to share. We decided to post it to our blog and invite people to share their responses in this public format.
Brian Regan
President
Semper International
Original message:
We keep hearing from our local offices that skilled, reliable print industry workers are hard to find.
We understand many of you are managers with hiring experience and some of you are skilled professionals happily working but your advice is really needed.
I am told we have had to decline or been slow in filling orders due to the lack of available candidates. Have you seen this recent scarcity of skilled workers? Are you or have you had similar trouble hiring? Are there many open spots that your company can not fill?
From the standpoint of those looking for work, what has changed in recent years, why are you coming into the industry or leaving it. What has your recent experience been looking for work in the print industry?
PLEASE feel free to post responses on this blog.
Add comment August 13, 2007
Semper’s quarterly survey results
Q3 Survey Analysis – August 2007
The second quarter responses are now in and they indicate a large drop in profitability last quarter. Respondents reported a 17% drop from the previous period. If your firm experienced a similar situation, you’re not alone. Printing Impressions reports RR Donnelley with a 69.4 million dollar loss for the time significantly.
The question related to sales volume the two weeks before the survey showed a 7% drop in respondents with increased sales. 31% indicated an increase in sales while 49% indicated sales held as is and 21% showing a decrease in sales. Respondents reporting a decrease also dropped.
For the 3rd Quarter a full 72 % of companies feel sales will increase, 23% feel sales will stay the same and 5% are expecting a decrease. This is an overall improvement over the last quarter’s responses. Employers are staying the same regarding hiring, hedging their bet that business will pick up in the coming quarter.
We see some changes in investing in new plant and equipment. Most areas are either staying at the same level or increasing capacity. Under the current economic environment we question the wisdom of this. We understand investing to meet client requirements but the overall capacity of the industry has been growing compared to demand for many quarters now. Several respondents even feel “Too much capacity in this competitive industry” is the biggest concern facing their business. We feel this is part of the reason the consolidations are hitting with such force.
Last quarter we started asking what business segment had the most pricing pressure from clients. Offset had the heaviest pressure at 47%. Strangely this survey shows a drop for offset to 37% and an increase in the copy segment from 18% to 45%. This could be a seasonal variation. As we continue to collect data, we will see trends more clearly.
Two more areas of interest include the question regarding labor costs and hiring issues. Labor costs showed a much higher rate of concern on health insurance costs than the last quarter. We feel that this is due to the time of year, renewals typically hit mid-year so respondents are more aware of the pricing. The second highlight is that hiring issues jumped to the forefront of concerns facing businesses. Please note that labor costs have a separate area, so this section shows an increase in the scarcity of qualified labor. We have recently written an article that may be of interest to companies facing this type of issue: CLICK HERE
In summary, we feel this quarter will likely be a trying one for our industry (55% chance of downturn) as well as the economy in general. Some positives would be a surprise rate reduction by the Fed, or at least an improvement of the bias from inflation to growth. A continued reduction in the price of fuel would also have a positive impact. We feel the current debt scare is actually causing a serious hesitancy in the economy. People are truly concerned and aware that the shake out will take quarters, not weeks, to correct. We feel flexible costs and production planning are the way to go over the next quarters to help ride out this period.
We do hope our prediction is incorrect or that external events act in a very positive manner countering the hesitancy we see. May your quarter be a good one!
Housekeeping issue: we remind all, this quarter’s survey comes at the peak of the vacation season so the pool of responses is at it’s worst. We ask that each quarter you help all of us by immediately responding when you see the survey email. We are always looking for more people interested in taking the survey – referrals are welcome!
Review the report here – CLICK HERE
Add comment August 7, 2007
Can the Graphic Arts industry pay enough?
We frequently hear the complaint that not enough people are entering our industry, that many skilled people are leaving the industry and that the over all supply of labor for the graphic arts industry is to low.
From my perspective, I tend to agree that asides from demographic constraints the industry has wider labor problems then normal. The recent articles about the dearth of students and the simplifying of the print process (PressTek’s and Frank Romano’s)are both good pieces to consider. One piece talks about the fact that less students are interested and links it to why students are attracted to being Graphic artists and creative and the other article reflects on making the print process easier IE: requiring less skill, and therefore enlarging the possible labor pool to attract from.
My contribution to the debate would be to look at the attraction part of the equation. The economics of our industry is critical to its ability to compete with other industries. If an industry is contracting, under intense margin pressure and is dealing with extreme change then it’s abilities to attract labor compared to other industries are substantially reduced. If we look at our industry we can see areas of growth and contraction it would be interesting to see if Trendwatch has any data on each industry segment and see if the growth, renewal and transformation part out weighs the decline side. We all see the consolidations and resulting reduction in supply happening in the industry but the increase in productivity in the industry vs the market penetration of print could well be a major cause of this. One way or the other the industry has clearly not been able to compete with other industries for the labor force it needs. The number one way to compete is in payrates for key positions, time after time we see companies looking for skilled workers at payrates the worker would be unable to afford a car on let alone cover room and board. Many of the positions in print do require a higher skill level and years of training to become expert so to lose existing skilled people to other industries and to not be able to attract new students will have a serious effect, Frank Ramono’s recent article mentions the industry needs a minimum of X workers a year just to cover retirement rates underscores the seriousness of the situation.
Payrates are one area but coolness or trendiness is important as well, in order to attract the next generation then the industry needs to understand that generation and use that understanding to get the attention of the labor force. I bet Apple has little problem attracting the labor it needs now. There are many other areas to discuss, if an industry is known to be in trouble then its longevity is in question. This longevity directly impacts our ability to attract labor, who wants to invest years to learn how to run a press and find that the positions will be phased out over the next 10 years. So, the real issue here is that in order to attract labor the industry needs to be successful, to be profitable and in such a way that the wealth generated can be shared with our labor force. The case studies on the airline industry, the steel, car and shoe industries are all to emblazoned in history to ignore. We must learn to embrace change and the potential for new rewards it brings. For without profits we will continue to lose the labor wars and our very industry would be in trouble.
We as an industry still have significant influence when we work together IE the recent Kinko/Adobe issue. Lets use our influence to address the very real labor issues we all face.
I look forward to your input.
David Regan
Semper International
Add comment August 2, 2007





