Showing posts from July, 2010

Games Sales Down?: The Glass is Half Full Edition

For the fourth straight month mainstream media is reporting declining sales and the demise of our business. I am amazed when I read an article about rumors of seconds old Playdom in discussions with Disney for an acquisition at a valuation of USD 600 million or Zynga securing financing at purported USD 2 billion valuation while analysts and commentators say the game business is dying. Are they making games, or just money? We are not in the midst of a declining market, we are suffering from a lack of measurement. Genius analysts are out there with quotes like, For the month of June, Pachter predicts game software sales measured by NPD will decline by 8% from the same month last year. Doug Creutz of Cowen & Co. predicts a 17% decline for June, and said he expects the slowness to continue through the summer.
and they treat it like it is relevant to anything at all. It is kind of like saying "buggy whip sales" are falling through the floor so consumers obviously do …