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Technology Stocks : 3DO: Hot Games for Hot Machines (THDO)

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To: (Bob) Zumbrunnen who wrote (4009)10/13/2001 6:03:46 PM
From: Bruce Prescott  Read Replies (1) of 4081
 
David & Bob,

I'm not at all pessimistic about 3DO -- no matter how X-box does. PS2 has already sold millions of platforms and games for that platform are going to sell this Christmas. 3DO will certainly sell some of those games.

After the lay-offs and pay cuts 3DO will have lower expenses and have less need for a blockbuster hit this Christmas. I think 3DO's Army Men games are going to sell better this Christmas than they did last year. Those games sell to a younger audience than the hardcore gamers that are the early adopters for most platforms.

I also expect that the Cubix game will sell better than people are now expecting. I've already seen stories about electronic robot pets being sold. We may well see "robots for everyone" and a cubix game under the Christmas tree.

I used to work for a large retail department store. I know how fast they can cancel orders and hold orders when the economy makes a downturn. I also know how fast they can make orders when there is an upturn. My guess is that a lot of 3DO's Christmas pre-orders were cancelled and no one was willing to take orders. When consumers start shopping again, retailers will start buying again.

My guess is that retailers will start buying again after Thanksgiving in early and mid December -- when 3DO will be releasing some new games. Retailers will be looking for new games and best sellers at that time. A lot of good games will not get much chance to sell because they were released when retailers were being cautious with their buying.

If the economy takes off in the first quarter next year, 3DO could still have a very good year. If it doesn't, then nobody else is going to have much of a year either.
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