“We expect investors to remain spooked by the May results, as they are beginning to reinforce the notion that the videogame industry is in a state of persistent secular decline."Even though Nintendo is printing money, they're in decline too Pachter said:
“Despite May’s easy percentage and dollar comparisons and long-anticipated debuts for a handful of games, it became clear that several of May’s games performed well below expectations as the month progressed.”
“Wii software sales were down 29 percent year-over-year, and DS software sales were down 13 percent, while PS3 software sales were up 58 per cent and Xbox 360 software sales were up 29 per cent."Personally, I believe the industry is stuck between being an art, and a business. We recently attended the Game Horizon Conference about the future of videogames and one of the points raised included: 'why spend millions and millions on a platform specific, genre specific title that looks beautiful and plays brilliant' when you can knock up a free to play microtransaction funded browser title available to everyone, everywhere and make stupid amounts of money...?
“We think this is remarkable, given growth in the Wii hardware installed base of 44 percent and growth in the DS installed base of 33 percent over the last 12 months. In our view, this indicates that Nintendo’s customers either are not finding enough software to satisfy their needs, or need less software than the typical Sony or Microsoft customer.”