Games: officially bigger than movies

If anyone had any doubt the games business was bigger than Hollywood, the release of Activision’s Call of Duty: Modern Warfare II has blown it away.

During its first five days on sale, the latest instalment in this shoot-em-up series took in $US550 million at retail.

The previous record holder was Grand Theft Auto IV, which collected $US500 million during its opening week last year.

According to the LA Times, Call of Duty’s haul is larger than that ever netted by a movie during its first week.

Top of the Hollywood heap is Harry Potter and the Half-Blood Prince, which grossed $US394 million over its first five days.

The new Call of Duty cost a modest $US40 million to $US50 million to develop, but a Hollywood-level $US200 million overall once distribution and marketing costs are factored in.

The games industry overall - buoyed by add-on extra packs and monthly online gaming fees - passed the movie industry in total revenue some time ago.

One measure of its might: Activision (NAS: ATVI) - now the largest games company following its acquisition of Blizzard from Vivendi - today has a market cap of $US14.8 billion and annual sales of around $US3 billion.

The game industry’s secret: 30 and 40-something males who started playing video games in the 1980s, and never stopped.