Since we’ve discussed why the PS3 is foundering it’s only fair we point out what the Wii has been doing well.
10. Brand Loyalty.
When it comes to video game companies, Nintendo boasts an incredible amount of longevity. Their first console, the Nintendo Entertainment System almost singlehandedly made home gaming popular and they’ve been going strong ever since. People have been buying Nintendo products for years. Sony hasn’t been in the games industry for quite as long and Microsoft is a relative newcomer to the console game.
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The gaming industry has also felt this nasty economy crisis. EA, one of the big names in the business is ready to reorganize itself. I has announce restructuring plans which include firing 1,000 employees and closing 9 studio and publishing locations.
The company announced in October that it will cut 6% of its workforce and now it looks like they went to 10%. Those 1,000 people will be let go by March 31st, 2009. This whole restructuring process combined with the company narrowing its games portfolio will save the company about $120 million annually but it will also cost them $55-65 million in the following quarters.
via Press
In more what-the-analysts-said news, notable industry figure Michael Pachter has noted that the games industry will be recession resistant, considering how tumultuous the stock markets are right now.
"Notwithstanding this month’s anticipated decline, we believe that the videogame software sector remains highly recession-resistant," he wrote in an investors note. "This month’s anticipated decline" is the almost certain year-over-year drop from September 2007, when Halo 3 had its blockbuster release.”
Pachter additionally predicted that September sales will hit $620 million in software – a 6% decline – but will see large increases in hardware sales. He cites the Xbox 360 price cut and increased Wii production to be the cause of this.
