As E3 Returns To Form, Industry Continues To Rise
Economy? Unemployment? Bah. The video game industry laughs in the face of such obstacles. Okay, nobody should "laugh" at the seriousness of the matter, but the truth is that despite slow sales in April (when nothing happened, by the way), analysts still expect the industry to excel.
And, according to a recent Reuters article, E3 will help to push the industry forward. It's a return to form; to "glitz," so-to-speak, and Ubisoft chief executive Yves Guillemot believes that unlike the past few years when E3 was a "nonevent," this year will be a "major event." Hudson Square Research analyst Daniel Ernst said video game sales for the fiscal year ending in March hit $28.7 billion, a rise of 13% and higher than the movie industry's take of $27 billion. And although sales of video games fell 17% in April and 23% in March, we have to remind everyone that not a heck of a lot happened in those two months. Besides Resident Evil 5, we didn't see much in the way of must-have software and with everyone tightening their belts, it was bound to happen. But Billy Pidgeon, analyst at Game Changer Research, believes that in the end, the industry is still healthy and still set to reach new heights. ...although a PlayStation 3 price cut announcement at E3 would certainly help. Said Pidgeon:
"The thing that would really boost the industry in this traditionally slow period would be a Sony price cut. That would really help right now. If it doesn't happen, I don't think the industry is in for rough times. I do see that, in the fourth quarter, there will be a return to form."
Global sales in the industry could near the immense $100 billion plateau this year ($98 billion) and break through to $110 billion by the end of 2010. Oh, and I suppose I could've just popped in a generic E3 logo or console pic for this story, but...aren't you happy I didn't? The booth babes are returning to the show this year, after all. ;)
6/1/2009 Ben Dutka