Pachter predicts further gaming growth
No peak in 2009
The games industry will continue to grow rapidly according to outspoken Wedbush Morgan analyst Michael Pachter, who says that gaming stocks have been underperforming as a result of the global economic crisis.
"Share prices for the publishers have underperformed this year, as concerns about a weak macro continue to linger. Investors appear to remain skeptical about the video game consumer, and investor pessimism was exacerbated by weak industry outlooks from Activision, Electronic Arts, Nintendo, THQ, Take-Two, and Ubisoft," Pachter told GameDaily.
"In addition, it appears to us that many investors remain convinced that industry growth will peak in 2009, given that this year is the fourth year of the current cycle, and given urban legend that video game sales always peak in year 4.
"We say 'rubbish', and note that video game software sales typically peak in the year prior to the introduction of a new generation console, as many consumers begin to slow purchases in anticipation of purchasing a new console the next year."
Plenty more money in the piggy bank, it would seem.
