Video games increasingly drive music sales
Fall Out Boy lead singer Patrick Stump performs at MTV's New Years Eve Bash 2005 in New York. The Chicago band sold 70,000 copies of their new album in one week after the music was featured on the popular skateboarding game "Tony Hawk's American Wasteland."
Updated: 7:40 p.m. ET Jan. 25, 2006
CANNES, France - Music scout Tim Riley hopes to discover the next Fat Joe — but has no intention of giving him a record deal.
If Riley finds the right sound, with the right Latino hip-hop attitude, he will sign the act straight away, for the third video game in the hit "True Crime" series.
"If everything lines up it's an amazing opportunity for an artist," he said. Riley has already helped launch several new groups in his job as worldwide music executive for U.S.-based game maker Activision Inc.
As consoles become ever more sophisticated, game budgets swell and record majors cut back their artist and repertoire departments, video gaming increasingly offers big breaks for musicians and, potentially, new revenue for labels.
Chicago band Fall Out Boy sold 70,000 copies of their new album in one week after the music was featured on "Tony Hawk's American Wasteland," a skateboarding game, Riley said.
"They weren't on the radio," he said. "The only thing you can attribute the sales to is the game."
When Electronic Arts Inc. bought Selasee's single "Run" for its "FIFA 2006" soccer game, the Ghanian reggae singer had yet to sell a song. Sales of his first album have taken off since the game's October launch; iTunes and Napster now stock it. Now based in the United States, Selasee regularly plays large venues.
"We're getting album orders from Australia, Turkey, Switzerland, the United Kingdom, Germany, and of course the U.S. and Canada," said Louis Rodrigue, the singer's PR manager. "His career is rocketing because of the FIFA game."
Video games may account for only a tiny share of the music industry's $21 billion global revenue, but record companies are watching closely.
"It's a very small but very interesting growth area," said Adrian Strain, spokesman for IFPI, the industry's global trade body.
The impact of games on music sales will increase sharply if — some say when — consoles let players buy tracks or albums directly online.
"We'll have massive uptake when we have one-click purchasing from games, and from TV shows," said John Booth, business development associate at Sony Computer Entertainment Europe, at the Midem music business gathering in Cannes this week. "And that's coming."
Microsoft Corp.'s latest console, the Xbox 360, is not currently configured to allow music to be bought online or transferred to another device. But sales through the company's own MSN site have taught the U.S. software giant to respect game music's potential.
"We're selling lots of Xbox music on the downloads site," said Jon Kertzer, business development manager for MSN Music. "There's lots of interest."
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Video games increasingly carry tracks by well-known artists alongside songs by promising unknowns. Rapper Snoop Dogg and Green Day's Billy Joe Armstrong have featured in earlier "True Crime" and "Tony Hawk" versions — both on the soundtracks and as characters within the action.