GTIS: Is there a better bet for Christmas sales? Message Board

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Technology Stocks : GTIS: Is there a better bet for Christmas sales?

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To: Jim Fisher who wrote (215)	12/12/1996 3:09:00 AM
From: RJC2006	of 432

Your analysis is sound, however one must take into account the fact that development by it's own right can be a large cash drain in and of itself. It is no surprise that the developer's turn to independent publishers and distributors to accomplish this task. Should they produce a flop they would not only be stuck with the development costs but the distribution as well. There are many industries that cannot handle the effects of development, manufacturing, distribution and sales on cash flow. The burden is just too high. GT will invest in their own private development but not to the exclusion of the methods for generating revenue that they currently are used to. True, other players may distribute add-ons for the main distributed titles that GT has rights to but this in no way hurts their business directly. Add-ons could be a significant business sector but it also requires purchase of the engine in order to drive them. From what I have seen Id does not create the add-ons that are in market now but most likely receives some royalty arrangement. What this translates to is more visibility of the product line which can't be "bad" for the engine distributor. Just my thought.

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