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No New Gaming Consoles Arriving Earlier than 2013

Sunday, May 10, 2009

In an analysis, announced that till 2013 no new gaming consoles are arriving in market. It is the analysis of Michael Pachter of Wedbush Morgan who says that next round of consoles is not arriving earlier than 2013.

According to Pachter, “fiddlesticks, calling the notion video game software sales always peak in a console cycle's fourth year an "urban legend." The magazine also analysis that till 2010 a new console can launch in market but next generation gaming consoles is not arriving before 2013.

In the reason it has given some solid logic but last one is impressive, “...publishers will resist the introduction of any video game hardware technology that requires a refresh of software, as the publishers have as yet to capitalize on the immense investments made in being competitive in the current cycle. We therefore think it is likely that the “next” generation will begin after 2013, meaning that software sales are likely to grow by a compounded annual rate of 6 – 10% for another five years. Because R&D costs are likely to flatten out with the benefits of a learning curve, we expect earnings leverage as the publishers are able to exploit R&D investments. In brief, we think that investors have it wrong so far this cycle, and think that investment in video game publishers will bear fruit for many years. However, pessimism about software sales in April could limit share price.”

It is truth that the age is competitive for all the products and market. In the competitive age if a company launch only stylish hardware without updated software then surely, in the market it would be fail.

In other news there is a rumor of Apple’s game consoles. It is being said that in coming future Apple is going to launch a game console. If it is true then analysis is not true because it ignores Apple.

If Apple launches a new gaming console then it surely will be a new hardware with updated software for new generation. That will be different from earlier and in market it will get huge popularity.

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