Traditional Video Game Market Faces Steady Declines -- Mobile Gaming on the Rise as Number of Smartphones Reach 1 Billion
October 24, 2012 08:20 ET
Traditional Video Game Market Faces Steady Declines -- Mobile Gaming on the Rise as Number of Smartphones Reach 1 Billion
Five Star Equities Provides Stock Research on Electronic Arts and Take-Two Interactive
NEW YORK, NY--(Marketwire - Oct 24, 2012) - The traditional gaming market has experienced a steady decline in sales in 2012 as gaming on smartphones and tablets continues to explode. Research firm NPD Group recently reported that retail sales of video-game hardware, software and accessories had declined for the 10th consecutive month, with a 24 percent drop in September. Five Star Equities examines the outlook for companies in the Technology Sector and provides equity research on Electronic Arts Inc. (
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While traditional game sales have experienced a major decline in 2012, mobile gaming has experienced the opposite. The NPD Group has reported that digital game sales -- which includes social games, mobile apps, and digital downloads -- increased by 17 percent in the second quarter of 2012. The number of smartphones in use in the third quarter of 2012 totaled 1.03 billion, a 47 percent increase from third quarter 2011. By 2015, that number is predicted to double to 2 billion.
"It's clear that the quality of mobile games is improving with faster processors and better displays on smart phones and tablets," said Michael Pachter, managing director of Wedbush Securities. "This has caused a migration of gamers at the more casual end of the spectrum away from dedicated consoles and handhelds toward mobile phones and tablets."
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Electronic Arts reported digital sales in the fiscal first quarter surged 55 percent, while total revenues declined. "There will come a point, whether it is two or three years from now, when we say, 'We are doing more in digital media now than we are in physical media,' and it's clearly... not far away," the company's COO, Peter Moore, said in an August interview. EA will report second quarter fiscal 2013 results on October 30, 2012.
Take-Two Interactive Software is a leading developer, marketer and publisher of interactive entertainment for consumers around the globe. The Company develops and publishes products through its two wholly-owned labels Rockstar Games and 2K. The recently released NBA 2k13 set a franchise first week sales record, selling 49 percent more than its predecessor. Take-Two will report its second quarter fiscal year 2013 results on October 30, 2012.
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