Social interaction trumps computer graphics

Interesting post today in the Business 2.0 Blog about the shift in gamer's behavior. Basically, the writer asks this question: are online activities like hanging out in MySpace and IMing with friends cutting into gamers' time, and thus helping to drive down videogame sales? From the post:

Cowen & Co. analyst Lowell Singer seems to think so.  From a note he sent out yesterday:

    Consensus View: The current softness in video game software sales is temporary, driven by insufficient supply of the Microsoft Xbox 360, and a lull before the introductions of Sony's PS3 and Nintendo's Revolution (Wii). Gamers will resume purchases of software as soon as they can purchase a next-generation console. Hardware and software growth in the next cycle will be robust.

    Our View: Our proprietary survey of video game players suggests that gamers' behavior has changed dramatically over the past year. Gamers are spending less time playing console video games, and more time playing computer games online, using the Internet for non-gaming activities and enjoying their iPods. This makes the competition for gamer's time and spending more challenging for hardware and software manufacturers. ... hardware and software growth in this cycle is likely to be less robust than expected and experienced in previous cycles.

Comments

[Maharet]

eh, i don't know about that. maybe in households where there's only one gamer....but in mine we play all the time and still manage to get time to log onto the internet. sometimes at the same time.

good post by the way. :)

[Andre]

Thanks so much for the amazingly insightfull GDC2006 talk slides. I'm quite sure they will have quite an effect on our litte web 2.0 business!