Posted by Chipsteak on the Yahoo board.
SAN DIEGO--(BUSINESS WIRE)--Jan. 20, 2000-- A new 200 page report from DFC Intelligence, The State of Game
Technology 2000, claims that video games and interactive entertainment are of prime strategic importance in the race to
provide consumer online and broadband services.
Furthermore, the upcoming fight to establish next-generation video game platforms could become the key consumer
electronics battle over the next decade. "The game industry is forecasted to become a $20 billion worldwide business in the
next two years," said David Cole, president of DFC Intelligence. "However the impact of the interactive entertainment industry
is much greater than the revenue it generates. Game hardware systems are likely to become hybrid devices that consumers use
for many forms of digital entertainment including music, movies, Web access and interactive television."
The report closely examines the next-generation console systems, including the Sega Dreamcast, the Sony PlayStation 2, the
Nintendo Dolphin and the Microsoft X-Box. According to DFC Intelligence, Sony's system (NYSE:SNE) is forecasted to be
the market leader. "The PlayStation 2 is an ambitious system that will have the capability to play DVD movies, access the
Internet and act as a complete 'Entertainment Box,' what we call an eBox," said Ben Sawyer, one of the principal authors of the
report.
Nevertheless, the report raises questions about how dominant the PlayStation 2 will be. "The PlayStation 2 may turn out to
be nothing more than a great game machine. Whether people use the PS2 to watch movies or access the Internet remains to be
seen," said Sawyer. DFC believes that Nintendo (OTCBB:NTDOY), Sega (OTCBB:SEGNY) and Microsoft
(Nasdaq:MSFT) could provide a strong challenge to the PlayStation 2.
In the long term, DFC believes that video game hardware devices will be a leading provider of multiple forms of digital
entertainment products and services. However, it may take five to ten years for this to occur. "Major media companies and
online service providers are currently not focused on games," said Cole. "America Online and Time Warner are merging to
become a complete interactive services provider. Despite this, the one thing missing from this merger is games." Cole claims
that games are likely to become a major reason that consumers subscribe to broadband services. Because of this, large game
software publishers, like Electronic Arts (Nasdaq:ERTS), could become key strategic players in the broadband services race.
The State of Game Technology 2000 examines the critical aspects of the interactive entertainment industry, including PC
hardware, video game console systems, 3D graphics, sound, development tools, peripherals, portable systems, online games,
wireless gaming and location based entertainment. |
