Got Game? Makers Hope They Do
Sony Corp., Sega Corp. and other Japanese video-game makers are optimistic that the U.S. war against terrorism won’t hurt sales and might help, as consumers stay home more and look to entertain themselves.
“Sales of home entertainment are likely to grow as people tend not to go out as often as they did,” Sega President Hideki Sato said. “It might not be true that the slowdown in the [U.S.] economy will hit home-entertainment sales.”
Although there were worries the terrorist attacks would push the slowing U.S. economy into recession, Sony, Sega and Microsoft Corp. have left their game-software shipment and profit targets unchanged.
The U.S., the largest market in the $20-billion global video-game industry, is headed into the holiday shopping season, which accounts for more than a third of annual sales. Shares of Sega, Capcom Corp., Konami Corp. and Namco Co. rebounded to pre-attack levels on optimism U.S. sales of game software will be strong in the weeks ahead.
Namco, creator of “Pac-Man,” will release its “Ace Combat 4: Shattered Skies” fighter-flight simulation game next week in the U.S., as scheduled. Konami will release “Metal Gear Solid 2: Sons of Liberty” next month in the U.S., as scheduled, sans images of the World Trade Center it removed after the New York landmark was destroyed by terrorists.
Sony Chief Executive Nobuyuki Idei this month said the largest video-game maker is on course to meet its original target of shipping 20 million PlayStation 2 game systems in its fiscal year that began April 1. Sony expects its video-game business to stay on course, even after cutting its overall profit forecast for its current business year by 89%.
Makoto Sakuma, who oversees Japanese equities at Asahi Life Asset Management Co., said he reduced his Sony holdings earlier this year and doesn’t expect the company’s game business to meet projections.
“I’m not optimistic about the game industry, as I don’t think it can escape the impact of a waning consumer confidence in the U.S.,” Sakuma said.
Sales of video-game systems and software fell 20% from a year earlier in the week ended Sept. 15, ConsoleWire.com’s Web site reported, citing market research company NPD Group Inc.
More recent reports said sales rose 6% and 13%, respectively, in the weeks ended Sept. 22 and Sept. 29.
