NEWS - Sunday, May 7, 2006


Game Companies Wary Of Transition Period

Game companies such as Microsoft Corp. and GameStop Corp. will be quietly calculating revenue projections, console launch dates, and hardware allocations. That’s because this is a delicate year for game companies, with Microsoft’s Xbox 360 hopefully finding its balance and new consoles from Nintendo Co. and Sony Corp. hitting the market this fall. As older Xbox, GameCube, and PlayStation 2 systems move into basements and closets, the industry is hoping there won’t be a major sales slide as gamers pinch their pennies for the new technology. ’’Whenever we go through these transition periods -- there’s a pretty well-documented history of this -- it tends to freeze the market," said Doug Lowenstein, president of the Entertainment Software Association, which organizes E3, as the convention is commonly called. Michael Pachter, an analyst with Wedbush Morgan Securities, issued a report this week projecting that game software sales, after falling 5 percent last year, will slip an additional 4 percent this year. The good news is that software sales are predicted to rocket up 18 percent in 2007, once Microsoft, Nintendo, and Sony have all released their new game players. But it’s clear that the industry is slogging through the transition right now, said David Zucker, chief executive officer of Chicago-based game publisher Midway Home Entertainment Inc. ’’There always was going to be one. It came, it’s here, and we’re in it," he said. ’’We can see the Xbox really starting to tail off." Midway reported a first quarter loss this week of $22.6 million, due partly to its focus on games for the new consoles, and expects to lose $66 million overall this year. Part of dealing with a transition is managing pent-up demand for the new consoles. When the Xbox 360 launched last fall, the shortages were so severe that GameStop, the largest games seller in the country, was still shipping systems out in March to those who had pre-ordered their consoles last summer. ’’I don’t want to be in a position where we take that many costumer preorders and come up that short again," said Dan DeMatteo, vice chairman and chief operating officer at GameStop.
Source: http://www.boston.com/

Comments

Site Statistics

Registered Members: 44,473
Forum Posts: 725,734
Xbox One Titles: 1,126
Xbox 360 Titles: 1,085
Xbox 360 Kinect Titles: 95
Xbox 360 Arcade Titles: 585
Original Xbox Titles: 987
Staff Reviews: 1,664
Member Reviews: 10,339
News Articles: 14,221
Screenshots: 30,892
Xbox 360 Achievements: 45,112
Xbox 360 Faceplates: 2,016
Cheat Codes: 1,706

Latest News








See News Archives

Community Forum Activity

Xbox Playdates Canada - February Playdates Schedule
Post by Kiesey
3 Replies, 257 Views

Xbox Prototype Communicator
Post by oryanphine
1 Replies, 375 Views

Xbox One S Dragon Ball Fighterz
Post by oryanphine
0 Replies, 370 Views

Xbox One S Theme Hockey
Post by oryanphine
0 Replies, 233 Views

New Fable is coming!
Post by Shadow20002
2 Replies, 484 Views

RPG Recommendation?
Post by DJ tx
8 Replies, 604 Views

Xbox Playdates Canada - January 2018 Schedule
Post by Kiesey
5 Replies, 675 Views

Xbox 360 Summer Intern Celebration 2011
Post by oryanphine
1 Replies, 714 Views

Xbox One X LA noire
Post by oryanphine
1 Replies, 1313 Views

Xbox One Assassins Creed Origins
Post by oryanphine
2 Replies, 1091 Views

Xbox One S Porsche 919 Hybrid Edition
Post by oryanphine
4 Replies, 1415 Views

OG Xbox on Xbox One now live!
Post by Kamshaft
5 Replies, 1600 Views

Xbox One S Renault F1
Post by oryanphine
2 Replies, 1122 Views

Xbox One S Wolfenstein 2 The New Colossus
Post by oryanphine
1 Replies, 1058 Views

Xbox One S Prey
Post by oryanphine
0 Replies, 783 Views

© 2000-2018 XboxAddict.com - All rights reserved. All trademarks are properties of their respective owners.
Xbox is a registered trademark of Microsoft. XboxAddict.com is not affiliated with Microsoft.

Made in Canada
Site Design by Cameron Graphics