Reduced 360 target causes VG stock dip
Resulting from Microsoft's lowered shipment target for the Xbox 360, several video game makers saw their stocks fall today. THQ, Take-Two, Electronic Arts, and Activision have all dropped, with THQ falling the farthest (4.7%). The stock drop comes after Microsoft announced that it had reduced its Xbox 360 shipment targets from 13-15 million units to 12 million units. Analyst PJ McNealy notes, "There is investor concern about a re-set of expectations around both the Xbox 360 and the Sony PlayStation 3."
We find the all around stock decrease interesting, as another analyst, Colin Sebastian of Lazard Capital Markets, expects that Microsoft's shipment reduction will have a negligible effect on software sales (though it does make the possibility of a 360 price cut unlikely).
It will be interesting to see how the market reacts when Sony makes its financial report on Tuesday.
[Via Joystiq]
