Gaming Trends: 2008

In a sea of economic woes, the U.S. video game industry is thriving. Every record analysts track seems to have been broken in 2007 as consumers flocked to new systems from Nintendo (NTDOY), Microsoft (MSFT), and Sony (SNE). Overall sales—of hardware as well as games and accessories—ballooned to nearly $18 billion last year, a 43% increase from 2006 according to industry analyst NPD Group.

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Game companies will continue to bulk up to compete, while game designers try to make the most of new technology and a broader base of players

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Even an economic downturn that promises to dampen consumer spending has done little to temper forecasters’ expectations. “Sales typically track more to the life cycles of the hardware systems, not macroeconomic trends,” says Michael Pachter, an analyst with Wedbush Morgan Securities. Microsoft, Nintendo, and Sony released their newest systems relatively recently (Xbox in 2005, Wii, and PS3 in 2006). In other words, interest and demand remain high. So far this year sales have outpaced 2007 by 28%, notes Anita Frazier, an analyst with NPD.

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Published by Reinout te Brake

Reinout is a games investor and strategic business consultant specializing in the games industry. Reinout established his credentials through his own successful investments, start-ups, consulting and (advisory) board positions that led through time to strong bonds with key stakeholders in this fast paced industry. He is known for his outstanding results in the gaming industry. He has worked with many game studios around the globe and is therefore well known in the international gaming industry. Check out his games podcast; https://www.game-consultant.com

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