Pessimistic analyst: after GTA IV and Wii Fit, what’s left?

Analyst- Goldman Sachs- Analyst says Video Game Sales Have Peaked - Image 1We’re only a quarter a way into the year and we’ve already seen several big games come out. Reports from the NPD Group indicate that both hardware and software sales are up, up, up. However, with GTA IV and Wii Fit to be released in the next few months, what’s left for the rest of the year? One analyst worries that after those games, the video game business is going to experience a slump. Save your comments for the full article.

Analyst- Goldman Sachs- Analyst says Video Game Sales Have Peaked - Image 1

It’s still early in the year but we’ve already seen several heavyweight video game titles released; Super Smash Bros. Brawl and Guitar Hero 3: Legends of Rock being two examples. The NPD Group reports say that hardware and software sales are going up, up, up.

Analyst Robert Higginbotham however, remains pessimistic. He points out that the only big titles left for this year are Grand Theft Auto IV and Wii Fit, which are due out in April and May respectively. After those months, “the remainder of the year lacks any big releases.”

The problem is only aggravated by the fact that future titles have it tough because games like Halo 3 are still fresh in gamers’ minds and comparisons are bound to arise. As a result, he predicts that the video game industry will experience a slump later this year.

Some analysts, however, disagree. Analyst Arvind Bhatia notes that GameStop continues to “outpace industry growth and gaining market share” and that “it increasingly appears the current video-game cycle could be longer and stronger than the most recent one.”

Via MarketWatch

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