UK Game Sales to Experience 'Massive Growth' In Next 5 Years

United Kingdom - Market research firm Verdict Research Limited has released their latest UK Video Games and Consoles Retailing 2008 forecast.


From the press release:

In 2008 we believe video games sales will overtake music & video sales for the first time. Video games are proving themselves the stand-out performer in a sluggish retail environment, enjoying explosive growth at odds with other sectors. When this upsurge is over, video games will find itself a more significant contributor to the retail market.

The reason for this is growth in the demographic, driven by technological innovation. Although leading specialist Game and a number of well-run independents are well-placed to profit on the buoyant market, other retailers are also keen to benefit with grocers, online retailers and non-specialists all ramping up their participation in the sector.

The medium term prospects of the market are strong with the current generation of consoles set to see a peak in hardware sales in early 2009 and then enjoying strong software sales - driven by a widely installed console base, into the next decade. The accessories market will also continue growing rapidly, driven by innovation and new technology.

What do you guys think? Will the strength of the gaming market while everything else crashes vault it to an even more prominent location in the marketplace even after the market recovers? Can games really pass movies and music?


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Konami 2Q Financial Report: Metal Gear Kinda Popular

Provided by Konami:

Konami announced Friday that Metal Gear Solid 4 has now shipped over 4 million units. Other data:

Click to enlarge:




Get the down & dirty HERE (Konami's Official Release .pdf)

Investor Relations: EA 2Q FY09 Results ($310M Net Loss)

Console Notes:
Check out the 360 total this quarter. Unbelievable! More than its console competitors combined.



Handheld Notes:
Gaming's greatest secret? WIRELESS BEATS DS AND PSP THIS QUARTER!


Fascinating quarter. Read the full report @ EA's Official Site

Sony Q2 Results: Games Division Loses $379

From Sony's Consolidated Financial Results for the Second Quarter Ended September 30, 2008:

Game
(Billions of yen, millions of U.S. dollars)
Second quarter ended September 30

2007 2008 Change in yen 2008
Sales and operating revenue ¥243.4 ¥268.5 +10.3% $2,582
Operating income (loss) (96.7) (39.5) - (379)

Unless otherwise specified, all amounts are on a U.S. GAAP basis.

Sales increased 10.3% year-on-year (a 15% increase on a local currency basis) to ¥268.5 billion ($2,582 million).

Hardware: Overall hardware sales increased as a result of an increase in sales of PS3 and PSP. Sales of PlayStation®2 (“PS2”) decreased year-on-year.

Software: Despite an increase in PS3 and PSP software sales, overall software sales decreased as a result of a decrease in PS2 software sales.

An operating loss of ¥39.5 billion ($379 million) was reported, an improvement of ¥57.2 billion year-on-year.

The decrease in operating loss in the current quarter was primarily due to PS3 hardware cost reductions and increased sales of PS3 software, as well as strong sales of PSP hardware.

Worldwide hardware unit sales (increase/decrease year-on-year):
→ PS2: 2.50 million units (a decrease of 0.78 million units)
→ PSP: 3.18 million units (an increase of 0.60 million units)
→ PS3: 2.43 million units (an increase of 1.12 million units)

Worldwide software unit sales (increase/decrease year-on-year):
→ PS2: 23.1 million units (a decrease of 14.9 million units)
→ PSP: 11.8 million units (a decrease of 0.8 million units)
→ PS3: 21.1 million units (an increase of 10.7 million units)

Inventory, as of September 30, 2008, was ¥243.2 billion ($2,338 million), which represents a ¥4.6 billion decrease compared with the level as of September 30, 2007. Inventory increased by ¥83.7 billion, or 52.5%, compared with the level as of June 30, 2008, due to increased inventory of PS3 and PSP hardware for the holiday sales season.

Investor Relations: Ubisoft First Half Fiscal Year Results

Choice quotes from the release:

Sales
Second-quarter sales totaled €175 million, representing an increase of 37.3% (43.6% at constant exchange rates) on the €127 million posted for the second quarter of 2007-08. This performance – which exceeded the guidance of approximately €160 million issued when Ubisoft released its sales figures for first-quarter 2008-09 – was primarily attributable to:

− The successful launches of Brothers in Arms Hell's Highway™ and SoulCalibur™IV
(Europe) for the Xbox360™ and PLAYSTATION®3.

− Solid sales turned in by casual games including new titles such


Increase expected for first-half current operating income
Based on currently available information, Ubisoft expects current operating income before stock options to represent a marked increase compared with the 3.4% of sales recorded for the first half of 2007-08. This rise mainly reflects the leverage effect on structure costs related to the strong increase in sales, as well as the favorable impact of the “Games for Everyone” range which requires a low level of R&D expenditure.

Market share:
In the first nine calendar months of 2008, Ubisoft was the number 4 independent publisher in the United States with 5.1% market share (compared with number 4 and 5.6% one year earlier); number 3 in Europe with 8.1% market share (compared with number 3 and 7.9%); number 2 in France with 7.5% market share (compared with number 3 and 7.5%); number 4 in the United Kingdom with 8.4% market share (compared with umber 3 and 9.0%); and number 3 in Germany with 7.6% market share (compared with number 3 and 6.9%).

Breakdown of sales by platform - First Half FY2008



Stay right here for the latest in financial statements, platform mix %, and charts. Will be updating throughout the day.

Update:
added Platform mix chart.

source: http://www.ubisoftgroup.com/gallery_files/site/270/1042/1827.pdf?PHPSESSID=a7e7dd6437825b39444ac12d9e61f3ee

Sony: ROE is like the PS3 (Ambitious and Unrealistic)

Sony CEO Howard Stringer has reiterated his company's performance targets for the year ending March 2011, meaning that the company’s previously ambitious target of a 10% return on equity remains intact.


Read the report @ EDGE.