Report - Games Will Explode In '97
Source: Newsbytes
SAN DIEGO, CALIFORNIA, U.S.A., 1997 JAN 9 (NB) Strong
growth in 1997 is forecast for the interactive entertainment industry, according to the latest report from
DFC Intelligence. DFC Intelligence estimates that the combined annual increase in dollar sales for the top
two categories, PC games and software for 32 and 64-bit console systems, could be as much as 60% in
1997.
The report says the three mega-hit console systems, Nintendo 64, Sony PlayStation and Sega Saturn, are
spurring most of growth, with PC games entering into their own new era of mass marketing acceptance.
Speaking to Newsbytes, David Cole, president of DFC Intelligence, said, "Nintendo set the stage for 1997
with its aggressive marketing and year end sales of Nintendo 64. With Nintendo 64 in short supply the
other platforms also benefited."
"The Nintendo 64 and Sony PlayStation are almost guaranteed to have continued strong sales," says Cole.
The fate of the Sega Saturn is less certain, but the report concludes that 1997 could be the year Sega makes
a comeback. "The Saturn is a powerful system with a strong software lineup and the incredible brand
name." According to Cole, Sega is behind in the race but "only one hit title and a solid marketing
campaign away from making a comeback."
"After several years of disappointing software sales, 1997 should see healthy growth in all categories: video
games, computer games and educational software," says Cole.
This solid growth is likely to continue in 1998. Educational software is another high growth area. For both
1997 and 1998, DFC Intelligence forecasts annual growth in educational software of from 12% to 20%.
According to Cole, the interactive entertainment market is finally stabilizing around three leading console
systems and the personal computer. "For the past two years there has been a great deal of confusion caused
by the sheer number of competing hardware platforms. Now the weaker systems have been weeded out and
consumers are ready to buy."
"PC games can now tap into a diverse mass market that cannot yet be found on console systems," says
Cole. The report points to the success of titles like Civilization II, Command & Conquer: Red Alert and
WarCraft 2. Cole says he is even more encouraged by the success of Mattel's Barbie Fashion Designer,
which is a non-traditional hit.
On the downside, the DFC Intelligence report indicates that there are still too many products in the
channel, and this causes great pressure on profitability for smaller companies. According to Cole, "just
because the industry is growing does not mean it will be any easier to make a profit. There are way too
many products being released. The Nintendo 64 is the only system where software titles are almost
guaranteed to have strong sales. Unfortunately, the Nintendo 64 is a cartridge-based system, which makes it
harder for publishers to make a profit."
DFC Intelligence releases the 580 page report, entitled The U.S. Market for Video Games and Interactive
Electronic Entertainment, twice a year.
(1997109/Press Contact: David Cole, DFC Intelligence, 619-484-5145; Reported By Newsbytes News
Network: newsbytes.com) |
