10 Reasons The Video Game Industry Is Heading For Another Crash

Sometimes games do badly, there is no avoiding that. However, when some companies are betting their future on the success of a game, that is what leads to bankruptcy. For THQ their last year in operation was hit by the dual poor performance of Homefront and Red Faction: Armageddon.

38 Studios sunk not only all their own money but a big pile from the state of Rhode Island into Kingdoms of Amalur: Reckoning. It sold 1.5 million, by many standards a success for a new IP from a fledgling studio. But they needed to sell twice that to just break even. 38 Studios went bankrupt and Rhode Island lost over $70 million worth of investment.

It doesn't always lead to bankruptcy though. The 2013 reboot of Tomb Raider was a great success, selling through 3.4 million copies in only four weeks. But even that wasn't enough as Square Enix was hoping for a ridiculous 14.9 million units between Tomb Raider, Hitman Absolution and Sleeping Dogs. Instead, they sold just under 9 million proving their market research was way, WAY off.

We all want new and exciting games, but you have to be realistic in your expectations. Just because Call of Duty or Skyrim sells well, it doesn't mean every FPS/fantasy RPG will. Meanwhile, the reasons not to buy games are mounting up...