News
Analyst: Games sales have peaked
Ben Parfitt Apr 22 2008, 10:27am
Comments (3)
US firm Goldman Sachs claims that post-GTA IV release schedule lacks big hitters
Despite reports from both the other side of the Atlantic and closer to home that show gaming is continuing to defy the global economic downturn, US analyst firm Goldman Sachs has stated that it believes the market has reached its peak.
Following its downgrading of US retailer GameStop’s shares, MarketWatch quotes the firm’s Robert Higginbotham as saying: "We see GameStop shares as poised for a pullback as industry growth remains on a path toward deceleration from its current peak.”
Higginbotham acknowledges the importance of the releases of both GTA IV and Wii Fit later this month, but adds:
"While the much anticipated release of GTA IV at the end of April is expected to produce record sales, and Wii Fit, slated for May in North America, is also expected to be a blockbuster, the remainder of the year lacks any big releases, and comparisons get tougher throughout the year as we lap titles such as Halo 3 and Guitar Hero 3."
However, a look at the 2008 release schedule does seem to throw up some genuine smash-hit contenders, including Konami’s Metal Gear Solid 4, Microsoft’s Gears of War 2, LucasArts’ The Force Unleashed, Capcom’s Resident Evil 5, Sony’s LittleBigPlanet, Ubisoft’s Far Cry 2 and Bethesda’s Fallout 3 to name but a few.
Comments
“Far from peak”
Posted by: monolux - Apr 22, 10:56am
Although I normally value Goldman Sachs point of view more than some other investment banks, I think they are wrong this time, especially on the other side of Atlantic.
“Re: Far from peak”
Posted by: Ryoga V - Apr 22, 4:30pm
This guy is an idiot. The best thing to do when one is green on subject, is to shut your mouth.
GS really needs to reevaluate their games sector coverage, esp in APAC.
“Re: Far from peak”
Posted by: Fred - Apr 22, 10:12pm
My portfolio is based primarly on VG companies. 24 pct up compared to a meager 9 pct from the index in 27 days...and GTA4 is not yet in the streets!!!!