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Technology Stocks : Computer And Video Game Industry Discussion

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To: Nutty Buddy who wrote ()10/14/1997 5:13:00 PM
From: Nutty Buddy   of 9
 
O.K., I'll put my two cents in (my prophesy).

This industry is similar to the movie industry. A company keeps pumping out titles with the expectation that one may be a winner. Forget the pre-game hype. What counts is when the title hits the shelf. I suspect the big profit titles are the surprise hits that took relatively little expense to promote and produce. It just happened while promoters were looking the other way.

I think also similar to the movie industry, the game companies get a rush with the pre-release hype and artwork. They pump millions of dollars into promotions of little relevance to the actual game's play. It's almost who can outdesign who.

I'm afraid this consolidation will be the demise of these companies. The big three or four game companies will release nothing but trash. They will loose sight of what the users want and give users their point-of-view titles. They will only rely on inhouse developers to produce this trash. The companies will attempt to do what they can to smash small time independent developers by monopolizing promotional channels.

In the end, the remaining few game companies will go bankrupt from their indifference and because they are so big that they cannot return a profit. Returning back into the spotlight will be the small independent developers who were unfairly blocked from the promotional channels.

Where the movie industry can turn around and sell their product through other channels, such as video tapes and cable and network TV, the computer/video game industry can only melt down their losers.

Keep in mind, that a small group of innovative game developers can and do produce very nice games with very little overhead unlike the movie industry. I hope that the big companies don't become complacent with their own in-house developers that the independents are forgotten, but I see ego growing and that (IMO) is not good.
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