Pachter: 'We Now See Just How Wrong We Were'

[Edouble24]

Grimes said:

Edouble24 said:

Grimes said:
The game industry is not fine. How many companies are generating any profit? I can't think of many except for Nintendo, Activision and Zynga. I'm sure there are others, but I can think of more that are struggling.

revenue may be down but plenty of companies are making money. Square-Enix, Namco, Microsoft, EA, Capcom. Most of the big name companies are doing just fine, smaller companies are struggling but that's not a trait unique to this generation or the video game industry.

 

EA $391 million quarterly loss

SE $29.8 million profit 6 months (55% decline from previous year)

Namco Bandai $31.8 million loss last reported quarter

Ubisoft €52.0 million net loss 6 months

T2 $55.5 million loss

THQ $5.6 million quarterly loss

Activision $15 million quarterly profit

Gamestop $52 million quarter profit (down from $232 million prev year)

Konami $18.7 million quarterly profit (down from $65 million prev year)

 

Looks like a picture of health....

 

 

This happens all the time in the game industry. It's not based on the generation but each Q. Some companies have good results and others don't, it's always been like that. Most companies this gen are profitable. The industry is a lot more stable than these reports lead one to believe. 2009 is a slow year and the profit declines are based on the lack of releases rather than the health of the industry. 2009 is going to be the second or third biggest year ever for gaming, the industry isn't in trouble.

Jarrod, I wasn't saying 2009 was terrible sales wise, as I said it's the second best year ever. It's just being directly compared to 2008 which is unfair considering 2008 was a monster of a year. I personally thought the year sucked for games but that's a different story. 2010 will change things and people will see the industry is just fine. A slight down time is nothing to panic about.