Amit Chokshi

Comment Stream » CBS

Comment Stream
Filter comments by:
Highest rated Latest comments
Or filter by symbol:
  • Electronic Arts Takeover Is Almost Inevitable... But by Whom?
    Nintendo is a great company and has done some innovative things like the DS but my comment was mainly towards those who say the Xbox 360 and PS3 are "failures" vis a vis the Wii. I have a pretty good grasp of console history, the PS2 was heavily outsold by the Gamecube and Xbox during the last console cycle and we know where it ended up.

    Gamecube and Xboxwere cranking out over 600k units per month in the beg of the last game cycle, and PS2 was around 400k and even dropped to just 200k but eventually was firing off close to 3MM units per month by xmas time in 2002, basically the middle of a recession.

    Right now, every analyst loves the Wii and is taking the first year of sales and expecting these monthly sales to go on forever. There are not that many skeptics of the Wii and I think it's a "real system" but also that the inital results overstate its long-term run rate while conversely the slow sales rate of the PS3 are not reflective of where it will be as the cycle matures.

    The more advanced consoles require more time to adopt because the first cut on games usually doesn't showcase the power of those consoles. Now with Halo out and with GTA on the horizon in spring, I think the new games are really going to showcase what those platforms can do which will drive a lot more buyers towards those consoles.
    Dec 10 11:19 am |Rating: 0 0 |Link to Comment |View article
  • Electronic Arts Takeover Is Almost Inevitable... But by Whom?
    Why do you think ERTS would be willing to sell to a console maker or why would a console maker be willing to buy it? Why not just co-create certain franchises? THe reason I am skeptical is because historically the PS2 was the biggest revenue driver for software players and I'm betting the PS3 will be too as the cycle matures. Wii IMO is a novelty, a cheap and fun console that non-gamers will buy and younger kids but will eventually collect dust. Sales are juiced in recent years due to the cost but I think the installed base will outweigh the benefits over time because I really don't think the people that were early adopters are necessarily long-term gamers.

    In contrast I think people are just starting to see the power the Xbox 360 and PS3 will have, the first run of games isn't going to showcase the hardware just yet. But that goes back to why I question whether ERTS would be a buyout target for a console maker.

    If MSFT bought ERTS, wouldn't the value of ERTS be reduced immediately or be a major washout? Big titles by ERTS sell well across the Xbox and 360 and I would expect MSFT to hoard ERTS's titles and not put it out for PS3, conversely the same would probably happen if SNE bought ERTS. MSFT doesn't make Halo available for the PS3 so why would it make Madden available for PS3?

    So that might have some say, that's the key and why a console player would go after ERTS, they can crush the other players because they capture that content. That could be true but current valuation for ERTS is based on streams from all consoles and you'd be paying for that and then having to build out/expect that owning Madden and other franchises drives more than enough people to your console platform. It could work I guess and guys like MSFT have shown a lot of patience and deep pockets in trying to develop their home ent division but it seems like the value of these software players could be a better fit for pure media companies.

    I think THQI and TTWO are prob the better targets, THQI could be perfect for DIS with Buena Vista since they have licenses to Pixar movies and other children's titles.
    Dec 10 09:08 am |Rating: 0 0 |Link to Comment |View article

Amit Chokshi's Comments Stream Stats

  • 88 Comments, 0 , 1
  • Total Comment Stream rating - = -1