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Technology Stocks : GTIS - Will it be a Phoenix or not ?

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To: RJC2006 who wrote (1745)3/13/1998 12:20:00 PM
From: Chris McConnel   of 2319
 
Bob,

>>> Chris, remember that GT is shifting away from outside publishers i.e. Cavedog as a good example. Bear in mind that future income isn't completely dependent on what the other guy is doing. <<<

Yes, this true, but it will take time to ramp up their own development studios. Cavedog, SingleTrac and OddWorld will not be enough. Also, there is no guarantee their studios will be successful. Good talent is hard to come by. So are good ideas.

>>> As the base continues to grow, the demand grows with it. In effect the possibility exists that GT or any other company for that matter may not feel any effect at all from an increase in competition <<<

Yes, but you need "hit titles", or at least good games to sell in glutted market, to turn a profit. Or else sell'em cheap as in the case of Deer Hunter.

>>> Besides, GT Interactive is it's own worst enemy. <<<
Yes, agreed. For example, they should have never lossed the Id account. That was a real bad move. Activision is making money hand over fist on Quake addon and Quake II.

- Chris
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