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In Poor Economy, Big Publishers Gain, Smaller Ones Lose
>> From gamasutra.com:
[QUOTE]
Warning signs have appeared to suggest the global economic crisis may impact video games at retail, says Lazard Capital Markets analyst Colin Sebastian, who says he's "cautiously optimistic although sales are a little uneven."
Echoing recent statements by Ubisoft CEO Yves Guillemot, Sebastian agrees retailers are being more cautious about their upfront inventory purchases, relying more heavily on reorders for games that sell well.
The analyst says that in the current climate, launch sales of games are generally strong -- but tend to drop off rapidly. "We interpret this trend to suggest that the core market remains healthy, while more casual/mass market consumers are spending more cautiously or waiting to make purchases closer to the holidays," he says.
This affords greater sales weight to major publishers like Activision, Electronic Arts and Ubisoft, with their seasonal blockbuster-type titles, suggests Sebastian -- to the detriment of the smaller publishers.
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Full Story: gamasutra.com
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