PS2 shipping difficulties hurt InterAct.
Recoton, the parent company to popular accessory developer InterAct, has announced an expected 20-25% percent shortfall in the fourth quarter from its videogame division. Robert L. Borchardt, the company's CEO, blames the difficulties on PlayStation 2's shipping woes. He said, "We, and others, are very disappointed in the reduced deliveries of Sony's PlayStation 2 gaming system and with the sales of all videogame platforms which appear to be down this holiday season causing a major gaming revenue shortfall."
Despite the bleak holiday season for Recoton, Borchardt remains hopeful that the company will rebound in the future, adding, "We anticipate a strong rebound in 2001 for our videogame segment based on the expected regular deliveries of PlayStation 2 and PlayStation One combined with the introduction and delivery during 2001 of the new Nintendo Advanced GameBoy, GameCube and Microsoft Xbox systems. This coupled with continued positive growth from our Consumer Electronic Accessory and Audio segments gives us strong expectations for improved performance in 2001."
1/5/2001 Bryan Keers