Fortune's prospects for the Game industry. (January 22nd issue p73-74, A play On PlayStation: Electronic Arts)
"In fact, the videogame industry is at the beginning of a 5 year cycle of increasing sales, says Edward Williams, an interactive-entertainment analyst at Gerard Klauer Matison.(...)By the next holiday season two other systems(on top of PS2), Microsoft's X-Box and Nintendo's Gamecube, will be available.(...)All told, videogame hardware and software sales are forecast to grow 20% in 2001, to $8.2 billion , and another 19% in 2002.
As for the industry's benchmark:
Electronic Arts' earnings still look pretty bright. Profits are powering past the overall software sector - growing more than 300% for the 2001 fiscal year (ending in March), compared with 35% for the industry. And for the next three years, profits are expected to jump 24% a year. That's a lot more than just fun and games.
A few comments:
i) THQI is in the right industry at the right time.
ii) THQ is gaining share as shown by the last report (second independent video game publisher in November).
siliconinvestor.com
iii) EA, the industry leader, is expected to pull the whole market upwards.
iv) With computer sales slowing down and MS joining the game industry, expect new investors and financial analysts to (re)discover the interactive-entertainment sector.
Over to You
The Fogg |
