Analyst: industry needs new console in next two years - Market set to peak this year and fall consistently otherwise

CVG writes: "Shore Capital analyst John Stevenson has said that the games industry needs to launch a new console within the two years in order to prevent profits from falling.

"Unless we see new hardware launches into the UK market over the next 2 years," he said to Reuters, "which appears unlikely at present, then we believe profits will peak this year and fall consistently over the following three years."

However, chief executive of Game Lisa Morgan said dismissed Stevenson's claims, stating that the games market was "absolutely not" at a peak.

Instead, Morgan said that unlike previous game cycles which have allegedly been driven by one major console (huh?), demand was now fuelled by a number of consoles that appealed to broader audiences."

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chasuk083669d ago

The only new consoles i can see coming in the next 2 years are a new xbox 360 that will be an epic fail, and a new ds and possibly psp

QuackPot3669d ago

A 720 is very possible while a PSP2 is a probable within two years.

A cheaper slim Ps3 with more memory(like the increase for the PSP) would be more likely in two years for Sony.

Also, once the rumored Play- & X-motes come to the next gens, then developers can take advantage of the new controllers and start making alot of new fun games for casual well as their usual fair of games.

These Analysts need to find another career.

ravinash3669d ago

Nintendo have proved that you don't need to be the most up to date hardware to be successful.
and the PS2 proved just how many consoles can be sold.

360 still has a while to get to this number and PS3 has even more room to grow. As long as new games keep coming out and they keep make new stuff, there is no reason to stop growing.

Blaine3669d ago

Seriously, games analysts are the biggest morons on this planet. A new console in the next two years for the European market? 1. Who would release it, and 2. who would buy it?

The only two possibilities I see is either for Microsoft to release a new console this early, or a completely unknown developer. In either case, I don't see the European market picking up this console. It would just be a big failure.

For the industry to keep growing in this generation we need more people to adopt the current consoles. For this to happen, we need more games. More games, not a new console. Seriously, who pays these guys to make such idiotic statements? I'd like that job.

Wotbot3669d ago

would anyone release a new console in the next two years.

MS are ahead of Sony so far, and are in a really strong position this Gen.

Nintendo is selling more then anyone else so far, and they make profit on console sales.

Sony are just starting to get going, and are starting to make up some ground on the competition.

The current Gen is just starting to get into it's stride. MS and Sony make money from games sales and not console sales. Especially not new next gen console sales, they lose money.

Crazy thinking, says it all really.

MUNKYPOO3669d ago

where do they find these analysts?