Video game market expected to jump 12%
Game publishers will be getting a nice pre-Christmas present in the form of improved sales. Black Friday is certainly looking to be a major success for console game publishers.
Michael Pachter, analyst with Wedbush Morgan, expects console software sales to rise by 12%. He attributes the increase to the new platforms, like the Xbox 360, Nintendo DS, and PS3, which are showing a jump of 131% over this time last year. The Xbox 360 is expected to take 36% of the $345 million new platform market and the report cites possibility of poor PS3 and Wii sales outlooks due to the "eBay effect"; the effect is where consumers bought the PS3 and/or Wii just to sell on eBay and didn't bother picking up software for it (those who purchased $1,000 or more PS3 units are also unlikely to spend much on software).
According to the report, the next-gen marketplace is already starting to eat away at the current-gen console sales. Current-gen software sales still outstrip next-gen by $95 million, but with the launch of the PS3 and Wii, the gap is expected to reverse next year. Improved sales are a good thing, that means our hobby (or addiction) will be around for at least another year.
