Analysts promise they're not just making it all up

Alisha Karabinus
A. Karabinus|09.08.06

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Analysts promise they're not just making it all up
Ever had the fleeting thought that maybe those video game analysts just don't quite know what they're about? Don't worry, it's not just you -- even they admit that the ever-changing market can be a challenge to ride.

Next-Gen's Krist Graft sat down with Michael Pachter of Wedbush Morgan Securities to discuss the challenges of predicting the business of video games. How does he do it? The same as any 'armchair' analyst, Pachter keeps up with the news. Some firms (like WMS) change their predictions as often as there are new developments, and this tumultuous week has brought about some major updates. What else? Analysts look for comparisons in gauging what's hot in the console war. He pointed to the success of the DS, particularly games that employ the stylus, as evidence that Nintendo is on the cutting edge of the interactivity that consumers want. Trend-spotting like that forms the basis of so much analysis in video games.

What's the final verdict for us? "The Wii's going to crush," Pachter says. Well, we don't understand all this fancy-schmancy business jargon he's using there, but we have to agree.
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