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Analysts predict sales declines for 2005 and 2006

http://www.gamespot.com/news/2004/07/06/news_6101965.html

Analyst Piper Jaffray predicts that the videogame industry's transition years of 2005 and 2006 will be characterized by declining sales and slowing growth.

In its latest videogame industry overview released today, analyst firm Piper Jaffray has predicted few surprises for the calendar years of 2005 and 2006. With new consoles expected to arrive, the 2005-2006 period is considered to be one of transition, characterized by sales declines and slowing growth. Piper Jaffray does, however, predict that videogame stocks could move up by as much as 10 percent as 2004 progresses.

Piper Jaffray goes on to suggest that the companies with the greatest potential for upside surprises right now are Atari and Activision. Atari because of the success it is enjoying with Driver 3, and Activision because of its Shrek 2 and Spider-Man 2 movie tie-ins. Specialty retailers, the report claims, have the potential to outperform near-term financial expectations thanks to solid sales of the Shrek, Spider-Man, and Harry Potter franchises during the traditionally slow summer months.
 

Ranger X

Member
What those analyst should do is give advices and help publishers in building new strong sales period during the year. The industry receive an alarm call last year when many games that could have sell well didn't because the market was too crowded in the holidays.

2004 is going to be 2 times worst than 2003. Some companies will have some money troubles in 2005 because there's simply too much big games coming this year and we just can't buy all that. Only those fat big names will take the money and many average to low budget titles will stay on the shelves.

So far nobody seems to care and even publishers seems to think that "oh well, the marketing of our game wasn't good enough" or "the game wasn't good or what the player wanted" ------ but they are wrong. It's because they all try to sell their shit head to head to everyone in the holiday season.

Just put this theory to some extent and if nothing change, i fear we may start to hear about some possible industry crash in a couple of years. (maybe sooner)
 

Baron Aloha

A Shining Example
Wyzdom said:
2004 is going to be 2 times worst than 2003. Some companies will have some money troubles in 2005 because there's simply too much big games coming this year and we just can't buy all that. Only those fat big names will take the money and many average to low budget titles will stay on the shelves.

So far nobody seems to care and even publishers seems to think that "oh well, the marketing of our game wasn't good enough" or "the game wasn't good or what the player wanted" ------ but they are wrong. It's because they all try to sell their shit head to head to everyone in the holiday season.

Yup, and come February 2005 I'll be waiting. I won't be buying anything this holiday season except for a few of the sure fire hits that have no chance of dropping in price shortly after they are released.
 
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