There are now 11 countries that have an annual video game revenue in excess of US$ 1 billion. By 2009, the video game market is expected to reach a whopping US$ 57 billion. Leading the charge are the Xbox 360, the PlayStation 3, and the Wii. Analyst David Cole of DFC Intelligence speaks his peace on the current generation of consoles. Which is the most profitable platform for 2007? The answer is a doozy. Make a guess, and find out after the "read more" link.

It's been a while since we've heard some strong words said on the subject of the console war. How are the consoles doing, and what's in store for them this year? Read up on what analysts have to say about the matter, and head over to the full article.

Analysts are known for scrutinizing trends and then making predictions based on those trends. In this case, David Cole of DFC Intelligence has his own take on the Xbox 360's performance in Europe. Interestingly, it includes a predicted switching of loyalties as well. Analyze the details in the full article after the jump.

If you've been keeping up with Electronic Arts' efforts to buy out Take-Two Interactive, then we've got an interesting bit of behind-the-scenes news for you. It seems that EA's own John Riccitiello views the takeover bid as an offered helping hand to the publisher, and this in itself is not going good with quite a few of this industry's leading analysts. Check out all the details in the full article and see what you think about this little hubbub.

 

DFC Intelligence, expert in video game and entertainment market research, recently released forecasts for the gaming industry. According to the research firm, Microsoft's Xbox 360 could lose the so-called "console war" and fall in a distant third place when year 2009 kicks in.

Various sources make it quite clear that the Nintendo Wii is zooming past its competition in terms of sales but Microsoft's horse trails close behind. DFC researchers, however, found weakness in 360's recent sales. If the current pace goes on for a couple of years, the Wii will dominate until 2008 ends. Sony's year will be 2009, when PlayStation 3 sales move into overdrive as DFC foresees.

DFC analyst David Cole pointed out how likely Sony will be leading in the software race even if Nintendo's console continues to sell. In order to share Xbox 360's presence to the scene, Microsoft "will need to build a strong base outside North America," said Cole.

By 2009, DFC expects US$ 47 billion in revenue for the gaming industry. Sales of the three big consoles are to reach numbers between 180 million to 210 million when 2012 comes - if DFC's projections are correct, that is. During the same year, PC gaming could be racking up $US 13 billion in revenue thanks to the ever-growing online games market and convenient digital distribution.

DFC's research is strongly positive toward handhelds. Cole stated that the Nintendo DS could be on top as the best-selling game system ever five years from now. Nothing is set in stone, but we can be sure of one thing: it'll be fun to watch how everything unfolds, and gamers win in the end.

In an effort to raise awareness and to ramp up its environmental campaigns, World Wildlife Fund or WWF bought some virtual land in Second Life and named it "Conservation Island". The island will be populated by different animal avatars and the objective, according to WWF, is to teach human avatars how to live in harmony with nature.

"WWF set up the island as a way to help people learn about conservation issues and the need to live sustainably. We want to be able to show people that WWF has solutions to the real environmental issues affecting their 'first life', commented WWF International Online Outreach Manager David Cole.

One avatar SL residents will meet in the island is Mr. Tangee. He's a scruffy looking orangutan that can be found in an ice cream van. His purpose is to let people know that the total number of plantations producing soy and palm oil that are being used in ice creams, cosmetics, and chocolate bars now cover an area the size of France.

This, of course, threatens his kind because most of his natural habitat are being converted to industrial areas. Another notable character is a panda that guides visitors around the wind-powered local town and chats about environmental issues.

 

The very enlightened folks over at Gamasutra notes that David Cole of DFC Intelligence, Ed Barton of Screen Digest, and ABI Research director">Mike Wolf of ABI research, the professional analysts, the people who get paid to talk gaming business are willing to give their two cents regarding the current state of the Sony PlayStation Portable.

David Cole notes his mixed feelings towards the PSP. While he believes that Sony's handheld has proven that there's room in the market for two portable systems, and that there is demand for a more high-end portable platform, he feels that the PSP could use a new model. Cole notes Nintendo's success with that strategy, and cites the GBA SP, and the DS Lite.

Ed Barton, on the other hand believes that the only way the PSP can be seen as anything other than a success is by comparing it with the dominant Nintendo DS. Barton cites forecasts of PSP console and software sales, and an installed base that should be 29 million by the end of 2007. Not as dominant as the DS but definitely NOT a failure. He ads: "If this is 'failing,' then failure just got a huge brand makeover."

As for Mike Wolf, he believes that the prevalent perception that the platform is a "failure" is manly due to the device struggling to live up to Sony's marketing of the product. Which according to him is what the PS3 is going through today. He notes that Sony's swagger, bravado, and "we are the one to beat" attitude is to blame for the PSP's bad reputation.

Wolf also ads that Sony's effort to use the UMD format as an avenue for movie distribution was a really bad move, especially now that the world is trying to move towards digital distribution. UMD: decent for games, bad for movies. The cherry on the PSP bad rep cake according to Wolf is the reliance on Memory Sticks, he believes that although the device would have cost more, if it had a significant amount of flash memory, then the PSP would have been much more successful.

As for generating more excitement for the PSP, suggestions included taking advantage of the PSP-PS3 connection, focusing on community, integration with the Location Free client and Home, distinct console unique games with gameplay that highlights the PSP, less PSP to PS2 ports, more "rethought" games like Ratchet & Clank, and as noted by Ed Barton (something that you folks definitely agree with) "offering users ways to create and share gaming content."

Home *hack, cough* brew.

As for their forecast for the PSP this year and the next, most of them agree that the time is ripe for a new hardware iteration (more memory and battery), some even express that a hardware upgrade is more pertinent than a price cut. They note it would be a good time for Sony to improve on wireless downloadable content for the PSP. Although they're all eager to see a second PSP, Wolf notes that "Sony's too focused on the PS3 right now to deliver a new handheld in the next 18 months."

According to a recent report from DFC Intelligence, the portable gaming industry stands to outgrow its console-based counterpart within the next few years.

"Under the right scenario, by 2011 the combined installed base of the DS and PSP could exceed that for the Nintendo Wii, Sony PlayStation 3 and Microsoft Xbox 360," said DFC analyst David Cole, in line with DFC's recently released report, "The Market for Portable Video Games".

DFC's report further analyzed that in 2007, Nintendo and Sony potentially stand to earn US$ 10 billion in worldwide revenue via the DS and PSP portable gaming systems. The report also reiterated on the Nintendo DS' current sales success, and followed up with reassurance on the Sony PSP developing a solid sales market in the years to come - so long as Sony Computer Entertainment (SCE) backed up its portable with strong promotional support.

The report indicates that other groups standing to benefit from this trend are third-party publishers and developers of PC-based RPGs, MMOGs, and turn-based strategy games. This sounds pretty much on the mark - the Nintendo DS and Sony PSP have been picking up a healthy crop of the aforementioned genres. We're imagining video games like Field Commander, Maple Story, or Final Fantasy Tactics, which is a hint of the promising games these two portables will be receiving in the near future.

According to Kemp Powers in Reuters, Xbox Live's daunting challenge is to attract the casual gamers to go online.

Xbox Live is what has set the 360 apart from its next-gen counterparts, as it was among the first to let players compete with each other online. However, the challenge remains as not only are their competitors now offering similar services, but Microsoft's online service is yet to attract the masses of casual players.

There has always been the impression that Xbox Live is for the hardcore gamers who thrive on competition, thus scaring the casual gamers away. As proof, even in games that were advertised with online play as a main feature, like Halo 2, only a fraction of users actually played online. David Cole, video game analyst and President of DFC Intelligence says, "A lot of casual gamers are intimidated by online in general, both in terms of the technology and the human competition. That's changing, but it still has a ways to go."

In the meantime, Microsoft is offering other features online, such as their download service for movies and TV shows to attract the "living room" audience.

All in all, Cole sums it up, "The key to the 360's overall success is what they'll offer consumers who don't go online."

It's David Cole of DFC Intelligence again with a word on the PS3's chances in the gaming market. This time, he believes that it's too early to call out any winners or losers yet - not this Christmas, not in 2007 even - in an article he wrote for Businessweek Online.

On the one hand, he writes, Sony has a large and installed base of PS2 owners going for it. They will want to upgrade to next-gen, sooner or later (which, of course, Sony is wooing with the PS3). On another front, he says developers are slowly coming to terms with the challenges of programming for the PS3. David thinks, though, that it will still be some time before the industry regularly punches out titles that fully exploit all that the Cell can offer.

Yet even if the PS3 becomes a best-seller, David doesn't think this will become PS2 redux. The Xbox 360 and the Nintendo Wii pose stiff competition for the PS3's debut, and can look forward to increased market share. Microsoft, for one, had had the lead-time from its earlier release of the 360, not to mention a solid list of titles under its Ring of Light. And the Wii? David thinks it's got "almost nowhere to go but up." In both cases, they are hoping to lure those PS2 owners wishing to go next-gen away from the PS3 and to their own respective consoles.

It's increasingly looking like a multiplatform world, and less like the current-gen with a far-and-away PS2 dominance. "More than ever, success in the video game industry is about having a complete package of technology, content, marketing, and distribution savvy." Both console manufacturers and game publishers alike can determine who wins and who loses in the console war. But this early? It's still too soon to tell.