DFC notes that there was a rally in video game stocks in 2001, much like the one 2006 - but that the uptrend was followed by a slowdown in 2002 and 2003. "It is just a cold hard marketplace fact that it takes a while for a new hardware system to build an installed base. In the mean time, revenue and profits tend to sufer."
Finally, DFC makes this interesting observation: for all the technical advances in the latest hardware, not much has really changed in the industry. "Despite all the hype about the Internet, MMOGs [massively multi-player online games], digital distribution, advertising in games and so on, games are still very much a retail driven business centered around big name franchises, often times licensed from other media." DFC notes that the big software titles in the 2001 holidays included Grand Theft Auto III, Halo, Final Fantasy X and Madden NFL 2002. Among this year's hot titles: Grand Theft Auto IV, Halo 3, Final Fantasy XII and Madden NFL '07. Five years later, people are basically playing the same games.