Video Games Will Shine This Holiday, Analyst Says4 Sep, 2002 By: Kurt Indvik
Video game sales will be resistant to a possible cooling retail trend and will enjoy a strong holiday sales period, said a report issued today by Bear, Stearns & Co.
Analyst Jeff Vilensky noted that concerns with travel and the economy will encourage consumers to seek more in-home diversions. Video games, which grew 40 percent in 2001 and are on track to boost sales another 20 percent over 2001 tallies, are, “…one segment of retail that continues to show staying power through the remainder of the year,” Vilensky said. “Price cuts in video game hardware helped to set off mass market adoption. As that adoption continues, we expect the sector to thrive,” he added.
Vilensky said that new game titles tied to summer box office hits Spider-Man, Star Wars: Attack of the Clones, and others are expected to drive growth this fall. One possible cloud on the horizon is teenage unemployment, which rose to 17.9 percent, according to Bear, Stearns & Co. “Teens are high on the list of video game consumers, so it's important to keep an eye on their discretionary income,” the analyst said.