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Two great RPG makes, Square and Enix, have to come together to compete.
In any industry that is growing rabidly small companies usually suffer as HUGE companies prosper. This has nothing to do with the feasability or prosperity of the industry as a whole.
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Microsoft reporting loss on XBox.
Microsoft planned on losing money on the X-box. It is their first stab at the console market resulting in huge R/D costs along with an aggressive campaign to try and aquire market saturation much quicker than it would normally. The fact that MS has entered the console game is an indication in itself of just how good the indusrty is.
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Nintendo and Microsoft lowering forcasts.
The US economy as whole has been in the crapper for 2 years now, terrorists flying planes into buildings didnt help either, nor does an impending was with Iraq. The vido game indusrty is growing very rapidly, much higher than almost any other retail sector. The lower forecast are a combination of the economy, more competition in the market, and overly optimistic targets that are used to make investors happy. This again is not a true reflection of the industry from a broad point of view.
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Sega making great games, but are in endless rumors of being bought.
This if anything tells me that the indusrty IS booming. Companies like SEGA are key pieces to larger companies plans of domination in a growing industry. When times are tough large companies tend to sell of various factions of their enterprice in cost cutting measures. The fact that SEGA is wanted by many again point a growing industry. Whoever does buy SEGA, (if anyone) will be come a much stronger force in the market.
Look at numbers of the indusrty as a whole, not the numbers of individual companies.