2007 May Be Rough For Video Game Stocks

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.

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HaKeRsCanRotINHEL5255d ago (Edited 5255d ago )

may be a rough year for a lot of things. May be does not mean will be. They should have come up with a better argument than this. May be everyone on Gods green Earth will realize that killing and being mean to other people is counter productive.

Halochampian5255d ago

I highly doubt it will be a bad year for games.

beans5255d ago

Well this is actually good news for certain types of investors!

dantesparda5244d ago

"Short" traders, or "Put" buyers. Its all good in my neighborhood, as long as im making money

PS3n3605255d ago (Edited 5255d ago )

I think this is going to be a good year for games. There are tons of great titles hitting all three systems this year. I get the sense that gamers are more eager than ever to snap up the games lately due to the hype and production budgets going into them. Its a great time to be a gamer thats for sure. i bet its a good time to invest in capcom with lost planet getting the reviews and demo play time it is in addition to dead rising being the top game in Japan right now.

joemutt5255d ago

They will always sell games.

They may not be great games but they do make and sell a buttload of them.

I currently have 72 shares in EA and thinking about getting some more.

MoonDust5255d ago

Everyday i would not do that. TTWO is a better bet, or maybe MWY after they report 4th quarter results. I have a feeling they will have a good Q1.

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