Author Topic: Videogame Industry Growing Quickly  (Read 2062 times)

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Offline WindyMan

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Videogame Industry Growing Quickly
« on: April 17, 2003, 09:56:33 AM »
Microsoft and Nintendo are bound to eat into Sony's userbase, and the next generation of consoles are expected to be the fastest-selling ever.

DFC Intelligence Forecasts Strong Growth For Video Game Industry


SAN DIEGO--(BUSINESS WIRE)--April 17, 2003--A new report from research firm DFC Intelligence forecasts that the worldwide market for video games, computer games and interactive entertainment hardware and software should grow from $20.7 billion in 2002 to as much as $30 billion by 2007.  Furthermore, the report states that by 2007 consumers will by and large be playing on a new breed of game systems that have yet to be released.  


"We think that the successors to the Sony PlayStation 2, the Microsoft Xbox and the Nintendo GameCube are likely to be the fastest selling video game systems ever," said David Cole, president of DFC Intelligence.  


Leading the market is Sony and its PlayStation brand. According to Cole, "the PlayStation 2 could eventually have sales of over 100 million hardware units, thus the PlayStation 3 has to be a favorite to continue Sony's market leadership position."  


However, the report claims that it is inevitable that Microsoft and Nintendo will take market share away from Sony. "The PlayStation 2 has been completely dominant, but we expect as much as 50% of PlayStation 2 owners to eventually buy an Xbox or GameCube," said Cole.  


The report contains three separate scenarios for future growth. Under all scenarios, the PlayStation 2 and PlayStation 3 are the market share leaders, however Microsoft and Nintendo are significantly more competitive then they are in today's marketplace. "Nintendo is being very aggressive with hardware pricing, software bundling and is doing a better job with third-party relationships. This should really benefit them in the long-term," said Cole.  


Meanwhile, Microsoft is expected to be extremely competitive on all fronts and has now become a battle-tested veteran. Cole noted that the Xbox was the first system from Microsoft, and it got off to a late start, nevertheless, the Xbox still has been quite competitive. The solid market performance of the Xbox significantly increases the market outlook for future game systems from Microsoft. According to Cole, "we think Microsoft and the Xbox could be potentially strong in Europe, a region that has been somewhat neglected by video game hardware manufacturers."  


The new report titled Worldwide Market Forecasts for the Video Game and Interactive Entertainment Industry is 500 pages and contains complete forecasts to 2007 for video game systems, portable game systems and computer games. Forecasts are broken down by individual platform for three major regions: Japan, Europe and the U.S. For more information go to www.dfcint.com.

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Offline Ian Sane

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Videogame Industry Growing Quickly
« Reply #1 on: April 17, 2003, 10:28:25 AM »
"The PlayStation 2 has been completely dominant, but we expect as much as 50% of PlayStation 2 owners to eventually buy an Xbox or GameCube,"

Now that's a pretty bold statement.  Is this a forecast for a strong growth for the videogame industry or a forecast for Sony losing their stranglehold on the market?  This forecast suggests that Nintendo will be a bigger factor in the years to come which is good news though perhaps a little unrealistic.

Videogame Industry Growing Quickly
« Reply #2 on: April 17, 2003, 03:09:51 PM »
At least Nintendo is getting recognized for their marketing strategy.

Offline oohhboy

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Videogame Industry Growing Quickly
« Reply #3 on: April 18, 2003, 03:23:52 AM »
Quote

Furthermore, the report states that by 2007 consumers will by and large be playing on a new breed of game systems that have yet to be released.


I don't think I need a report to tell me this.
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