The Declining State of the Games Industry

Joystiq reports the following:

US console sales continue their nose dive since September; according to the research from Michael Pachter, "total U.S. console software sales for February were $340 million, down 13% compared to last year and lower than our $350 million estimate (down 11%)."

Meanwhile, EA announces a change in the game plan, choosing to:

• Push the number of games based on internally created concepts above 50% of EA's total portfolio in the next 12 to 18 months, from about 30% today
  
• Create at least one new franchise a year.
  
• Aggressively snap up marquee talent.
  
• Building a brand-new development studio in Montreal that will focus entirely on cooking up new, original titles.
• Acquire independent studios.
  

The last game company that tried to break themselves away from doing licensed games and focusing on original IPs was Akklaim. Well, that was what they claimed, right before they released the Simpson's Crazy Taxi clone, amongst other licensed games. Akklaim then went back to doing licensed games, dropping their original game titles, and subsequently ending up bankrupt. Of course, take what EA says with a grain of salt -- EA is definitely not opposed to acquiring indie studios for the purposes of increasing their franchise portfolio. They acquired Origin for Wing Commander and Ultima, and they acquired Maxis for the Sim City franchise. They acquired Westwood for Command and Conquer. EA has always snapped up marquee talent (but usually by purchasing the talented indie studio), and starting up a new studio in Montreal is smart, given that the corporate conditions in Canada are even more favorable to the business than in the United States.
One more thing, as a note to all game publishers -- Hollywood isn't the answer. Hollywood has their own problems in creativity they've got to work out. I'll give any publishers a good hint to finding new original titles -- start up a bunch of new projects, give them a little money and see what sprouts up.
Game Retail Sales Now in their sixth month of decline.