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The gaming industry is only getting stronger

Last response: in Video Games
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Anonymous
July 6, 2005 11:46:59 AM

Archived from groups: alt.games.video.xbox,alt.games.video.sony-playstation2 (More info?)

http://homemediaretailing.com/../news/html/breaking_art...
ticle_ID=7716

Total U.S. video game hardware, software and accessories sales will leap to
$16 billion by 2007, when the next-generation hardware makes inroads with
more consumers, said a recent report from Kagan Research.

The report, Future of Videogames 2005, forecasts that sales in 2007 would
post a 61 percent increase from 2004's total of $9.9 billion.

Video game software sales alone are expected to grow to $8.1 billion by
2008, which is up 30 percent from 2004's $6.3 billion. The report does not
include PC game sales.

Kagan forecasts that by 2010, 54 million U.S. households will own at least
one console, and most will own both a fixed and a portable system.

The new report paints another victory for Sony, which will be late to the
next round of hardware by as much as a year if PlayStation 3 launches in the
United States next fall as expected.

Microsoft's Xbox 360 is expected to sell 11 million units by 2007, including
an estimated 3 million hardware devices this year. Approximately 1.5 million
Xbox 360s are expected to ship and sell through for the North American
market launch this November, according to the study.

"We believe Sony PS3 will be the strongest seller of next-generation video
game consoles," said Kagan analyst Irina Mulvey, who wrote the report.
"However, Microsoft's Xbox 360 will narrow the gap with Sony to come within
28 percent of the PS3 installed base - selling almost twice as many next-gen
consoles as Nintendo Revolution by 2010."

Nintendo is expected to enter the next-generation battle as early as summer
2006 with its Revolution, which is expected to retail for $200 - much less
than the anticipated $300 price of Xbox 360 and $400 price of PS3.

Peter Moore, Xbox corporate VP of worldwide marketing and publishing, said
at the European ELSPA Games Summit's opening keynote that Microsoft would
sell 10 million Xbox 360s in its first 16 months. He added that being first
to retail with its next-generation hardware will be one of the keys to the
new console's success.

Sony was able to sell 20 million PS2s worldwide before Microsoft shipped a
single Xbox in the current generation war. And it took Microsoft a full year
to sell its first 1 million Xbox consoles.

According to the report, by the end of 2006, Xbox 360 will have 54 percent
of the next-generation market share, followed by PS3 with 27 percent and
Revolution with 19 percent. By 2007, the study projects Microsoft's lead
will be gone, as its market share is expected to drop to 37 percent as Sony'
s PS3 rises to 45 percent and Nintendo holds its 19 percent.

In addition, the higher price points for Xbox 360 and other next-gen games -
which are expected to be $60 at launch instead of the $40 to $50 of current
generation software - will propel video game sales to $6.5 billion in 2005
and $8.1 billion by 2008.
Anonymous
July 7, 2005 1:25:35 AM

Archived from groups: alt.games.video.xbox,alt.games.video.sony-playstation2 (More info?)

In alt.games.video.sony-playstation2 Boody Bandit <boodybandit@hotmail.com> wrote:

> In addition, the higher price points for Xbox 360 and other next-gen games -
> which are expected to be $60 at launch instead of the $40 to $50 of current
> generation software - will propel video game sales to $6.5 billion in 2005
> and $8.1 billion by 2008.

That's a pretty big (and stupid) assumption that people will buy $60 games
at the same rate they've bought $40 or even $50 games... Heck, why not
raise the price to $100, and say that that revenues will double to $16bil.
in 2008?

See? I can play teh analyst job too. Gimme money. I 4M l33t!!!11111
July 7, 2005 1:30:30 AM

Archived from groups: alt.games.video.xbox,alt.games.video.sony-playstation2 (More info?)

* Doug Jacobs Wrote in alt.games.video.xbox:

> In alt.games.video.sony-playstation2 Boody Bandit
> <boodybandit@hotmail.com> wrote:
>
>> In addition, the higher price points for Xbox 360 and other
>> next-gen games - which are expected to be $60 at launch instead
>> of the $40 to $50 of current generation software - will propel
>> video game sales to $6.5 billion in 2005 and $8.1 billion by
>> 2008.
>
> That's a pretty big (and stupid) assumption that people will buy
> $60 games at the same rate they've bought $40 or even $50 games...

Why? Its held true. You weren't paying $49 for Atari 2600 carts were
you? Production costs have gone up so prices go up. Going to the movies
used to cost ~$5 now its almost $10, no difference.


--
David
Related resources
Anonymous
July 7, 2005 1:30:31 AM

Archived from groups: alt.games.video.xbox,alt.games.video.sony-playstation2 (More info?)

"SINNER" <arcade.master@googlemail.net> wrote in message
news:Xns968BA7F116164Louiscypherhellorg@140.99.99.130...
> Going to the movies
> used to cost ~$5 now its almost $10, no difference.


Bad example, given the current movie-going slump, now in it's 19th week...
July 7, 2005 3:00:08 AM

Archived from groups: alt.games.video.xbox,alt.games.video.sony-playstation2 (More info?)

["Followup-To:" header set to alt.games.video.xbox.]
* Company Man wrote in alt.games.video.xbox:

> "SINNER" <arcade.master@googlemail.net> wrote in message
> news:Xns968BA7F116164Louiscypherhellorg@140.99.99.130...
>> Going to the movies
>> used to cost ~$5 now its almost $10, no difference.

> Bad example, given the current movie-going slump, now in it's 19th week...

Point still holds, point taken.

--
David
In an otherwise vacant locker room, the only other person will have the
locker right next to yours
-- Murphy's Laws of Martial Arts n°9
Anonymous
July 7, 2005 3:19:04 AM

Archived from groups: alt.games.video.xbox,alt.games.video.sony-playstation2 (More info?)

In alt.games.video.sony-playstation2 SINNER <arcade.master@googlemail.net> wrote:
> Why? Its held true. You weren't paying $49 for Atari 2600 carts were
> you? Production costs have gone up so prices go up. Going to the movies
> used to cost ~$5 now its almost $10, no difference.

Except that I don't go to the movies anymore... $10+/ticket is just too
ridiculous. Besides, for that amount, I can *buy* a new DVD.

And no, I wasn't paying $49 for Atari 2600 carts. By the time I was
buying carts and games, the prices had dropped to about $25-40.

$60 is just way too expensive in my opinion for a game. Most games last,
what, 15-20 hours? Maybe you'll get 35-50 hours out of an RPG, with a few
games going 50+ hours? Of course, this assumes the game is worth playing
in the first place... Yeah, production costs may have gone up for both
movies and games, but you generally aren't seeing that effort put into the
quality of the product, just the graphics/SFX.
Anonymous
July 7, 2005 3:34:50 AM

Archived from groups: alt.games.video.xbox,alt.games.video.sony-playstation2 (More info?)

In article <Xns968BA7F116164Louiscypherhellorg@140.99.99.130>,
SINNER <arcade.master@googlemail.net> wrote:
>* Doug Jacobs Wrote in alt.games.video.xbox:
>
>> In alt.games.video.sony-playstation2 Boody Bandit
>> <boodybandit@hotmail.com> wrote:
>>
>>> In addition, the higher price points for Xbox 360 and other
>>> next-gen games - which are expected to be $60 at launch instead
>>> of the $40 to $50 of current generation software - will propel
>>> video game sales to $6.5 billion in 2005 and $8.1 billion by
>>> 2008.
>>
>> That's a pretty big (and stupid) assumption that people will buy
>> $60 games at the same rate they've bought $40 or even $50 games...
>
>Why? Its held true. You weren't paying $49 for Atari 2600 carts were
>you? Production costs have gone up so prices go up. Going to the movies
>used to cost ~$5 now its almost $10, no difference.

Not quite. While the movie industry has been growing slowly due to
higher ticket prices, attendance has been dropping for years now.

Plus, video games have not always gone up in price. The 16-bit
systems had $60-70 games.

Vin
Anonymous
July 7, 2005 3:34:51 AM

Archived from groups: alt.games.video.xbox,alt.games.video.sony-playstation2 (More info?)

"Vineet Gossain" <vin@xenon.Stanford.EDU> wrote in message

>>>> In addition, the higher price points for Xbox 360 and other
>>>> next-gen games - which are expected to be $60 at launch instead
>>>> of the $40 to $50 of current generation software - will propel
>>>> video game sales to $6.5 billion in 2005 and $8.1 billion by
>>>> 2008.
>>>
>>> That's a pretty big (and stupid) assumption that people will buy
>>> $60 games at the same rate they've bought $40 or even $50 games...
>>
>>Why? Its held true. You weren't paying $49 for Atari 2600 carts were
>>you? Production costs have gone up so prices go up. Going to the movies
>>used to cost ~$5 now its almost $10, no difference.
>
> Not quite. While the movie industry has been growing slowly due to
> higher ticket prices, attendance has been dropping for years now.

I'm not sure I agree with the cause and effect there. If it was simply cost
of tickets, they would lower them. They've got a good handle on the ticket
costs. Problem is they can't produce anything worth the masses going to see
and they need to keep the idiots out of the theater as well or drive off
more of the audiences.

> Plus, video games have not always gone up in price. The 16-bit
> systems had $60-70 games.

The NeoGeo games cost hundreds, as well.
Anonymous
July 7, 2005 4:53:47 AM

Archived from groups: alt.games.video.xbox,alt.games.video.sony-playstation2 (More info?)

Fred Liken wrote:
> "Vineet Gossain" <vin@xenon.Stanford.EDU> wrote in message
>
>
>>>>>In addition, the higher price points for Xbox 360 and other
>>>>>next-gen games - which are expected to be $60 at launch instead
>>>>>of the $40 to $50 of current generation software - will propel
>>>>>video game sales to $6.5 billion in 2005 and $8.1 billion by
>>>>>2008.
>>>>
>>>>That's a pretty big (and stupid) assumption that people will buy
>>>>$60 games at the same rate they've bought $40 or even $50 games...
>>>
>>>Why? Its held true. You weren't paying $49 for Atari 2600 carts were
>>>you? Production costs have gone up so prices go up. Going to the movies
>>>used to cost ~$5 now its almost $10, no difference.
>>
>>Not quite. While the movie industry has been growing slowly due to
>>higher ticket prices, attendance has been dropping for years now.
>
>
> I'm not sure I agree with the cause and effect there. If it was simply cost
> of tickets, they would lower them. They've got a good handle on the ticket
> costs. Problem is they can't produce anything worth the masses going to see
> and they need to keep the idiots out of the theater as well or drive off
> more of the audiences.
>
>
>>Plus, video games have not always gone up in price. The 16-bit
>>systems had $60-70 games.
>
>
> The NeoGeo games cost hundreds, as well.
>
>
I remember admiring that NewGeo in the KB store window back in the day
like Ralphie gazing at the Red Rider BB Rifle . Too expensive :( 
!