• by Michael Shields , September 1, 2004

As video games continue to steal away consumers--particularly younger men--from traditional media, they are providing a boost to an unlikely partner: traditional media--a very particular segment of traditional media, to be sure. Specifically, magazines that cater to gamers are quietly moving from enthusiast-only domains toward critical mass.

In the most recent Audit Bureau of Circulations report covering the first half of 2004, magazines such as Official Xbox Magazine and PSM: 100% Independent Playstation2 Magazine are among the fastest-growing titles on the market.

Official Xbox Magazine made the largest leap through the first half of this year, as newsstand sales skyrocketed by 27 percent. This means that nearly 140,000 readers are dropping $9.99 each month to read up on their favorite games.

In addition, subscriptions were also up 14 percent, and total circulation increased by an impressive 18 percent.

PSM did not exhibit the same sort of newsstand strength, and total circulation was actually down .8 percent through June, yet the title still delivers a very healthy 400,318 copies monthly.

Madison Avenue is starting to plug in and play. "Media folks are beginning to take the category very seriously," said Future Network USA Publishing Director Simon Whitcombe, who oversees both titles along with PC Gamer. He says that circulation "has been growing at a phenomenal rate"--up 35-50 percent over the last few years, depending upon the title.

Yet many advertisers had ignored this category in the past, declaring it too geek. "Five years ago, I would get a glazed look across the table from advertisers," Whitcombe said.

That is changing rapidly. "The last couple of years we've broken a lot of non-endemic advertising," he said. Whitcombe estimates that 10-15 percent of these titles' ads are non-endemic, up from less than one percent two and a half years ago.

Mainstream brands like McDonald's, Cingular Wireless, and Progressive Insurance are regulars, as well as the majority of major movie studios.

When 45 million homes have a Playstation 2 and 8 million feature an Xbox in the living room, perceptions are bound to change. "The marketplace has matured," said Whitcombe. "Video games have broadened. They have become part of an entertainment lifestyle versus a kid's fad."

The readers of Future's titles are not kids. The average age of PSM is 24, and the average age of Xbox is 27. PC Gamer, which reaches the more traditional "gamer" who spends hours playing strategic games like Doom, has an average age of 30.

As console games have become more prominent for all ages, these magazines have had to evolve somewhat. "I think all of our magazines have made subtle changes over the years to make them accessible," Whitcombe said. "We need to appeal to a cross section of readers: those who buy one game per month and those who buy one a year."

Buying games is still these magazines' primary reason for being, as reviews are crucial for those who regularly spend $50 or more on games. "Games are perhaps the only entertainment product that are not an impulse purchase," Whitcombe said. As more readers seek advice on which titles are worth it, "we are an intrinsic part of the buying process," he said.

Regardless of these game-lovers' level of skill, it seems that more and more of them will continue gravitating to these titles. Whitcombe believes that PSM and Xbox can reach circulations of between 500,000 and 700,000 over the next five years. While growth may be static in the near future, the release of Playstation 3, and the next version of Xbox (both likely in 2006), will likely produce a boost in readership.