Could more Australians ditch blockbuster films these holidays?

The traditional holiday movie launch may be getting supplanted by blockbuster video games, with major interactive releases increasingly taking up prime advertising space and drawing consumer dollars.

There have been examples of video games out-grossing the box office since the ’90s. Culturally, films have been thought of as a group entertainment activity, while games have been regarded as more of a gift to put under the tree for kids and game fans. A new study suggests that’s shifting.

An ad for holiday blockbuster game Indiana Jones and the Great Circle on a Melbourne tram.Credit: Simon Schluter

About three in five adult Australians play games, and more than half of the population intends to make a gaming-related purchase as part of their holiday spending, according to the survey conducted by YouGov. Of those people, the average anticipated spend was about $200, whereas Australians in general anticipated spending about $82 at the cinema. Millennials were expected to be the highest spenders, with the largest proportion of that age group planning to spend up to $250 on gaming purchases over the holiday period.

The survey, commissioned by Xbox, also found that more than half of adult Australians prioritised games in their holiday entertainment, and that 61 per cent of families with children agreed gaming was a bonding family tradition. Xbox Australia’s games lead Eve Oorloff said the medium was becoming more of a shared holiday experience, as families increasingly have multiple generations of game-players.

“This shift in perception is really encouraging, as more people are beginning to see the value of gaming in bringing people together, much like the movies have done for generations,” she said.

“We love being at the forefront of this continued evolution and adoption of gaming across generations, and watching it become a shared experience between players.”

Telsyte analyst Foad Fadaghi, who was not involved in the research, said video games are appealing as gifts and activities when families are looking to maximise value in terms of dollars spent per hour of entertainment. A trip to the cinema with the whole family can easily cost as much as the most expensive new game.

“According to everything we’ve seen, there’s been a shift against that kind of retail spending. People are spending a lot more time at home for their entertainment,” he said.

“Entertainment is always a function of discretionary income, and clearly families see a lot of value in games.”

Xbox says families are increasingly playing video games together as a holiday tradition.

New games for this holiday period include Indiana Jones and the Great Circle and Call of Duty Black Ops 6, both published by Microsoft-owned studios, as well as Astro Bot, Lego Horizon Adventures, Super Mario Party Jamboree and Sonic X Shadow Generations.

Microsoft’s own games are included in its Game Pass Ultimate subscription service – meaning families could also play Indiana Jones and hundreds of other games for $23 a month, roughly the price of a movie ticket – on Xbox consoles or on PCs, which the study indicated were used for gaming by about half the playing population.

But Fadaghi said the increased digitisation of the games marketplace came with certain dangers for game sales, especially at Christmas. Digital gifts are available but might not be preferred by family members who want to wrap up a present, and games could become less favourable as a gift if the trend towards subscriptions continue. In the era of Netflix, few people get DVDs as a gift.

Harrison Ford has been digitally recreated as he looked in 1980 for The Great Circle, a globe-spanning, fascist-punching adventure set just after Raiders of the Lost Ark.

“Subscriptions represent great value for money. But they represent an ongoing payment, so for some people it’s a little bit different from that one-off gift,” he said.

The YouGov study indicated that, of the people who intended to make a gaming purchase these holidays, about two in five expected to buy a gift card or voucher.

Oorloff said Xbox invested in a wide variety of games to enhance the value of Game Pass, but Hollywood-style release campaigns were still vital for blockbuster games, which take many years and millions of dollars to make.

“Making a splash at launch helps capture interest and build momentum and awareness. It also sets the title up for ongoing success through fan engagement with downloadable content, updates, expansions, and community events,” she said.

“Games offer rich narratives, cinematic experiences, and interactive storytelling that rival any Hollywood production; the launch of a hotly anticipated title can feel similar to a movie premiere.”

Get news and reviews on technology, gadgets and gaming in our Technology newsletter every Friday. Sign up here.