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Published in Gaming

Additional Xbox growth unlikely in 2009

by on05 December 2008

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Microsoft bracing for difficult time ahead

While Microsoft was crowing the other day about pummeling PlayStation 3 in sales over the Black Friday weekend shopping spree, it seems they are starting to think about the future beyond this holiday season; and they are saying that it might not be as good as they have had it lately.

Microsoft’s Shane Kim has been quoted as saying that flat performance will be considered a remarkable achievement in 2009, but it is difficult to predict the future. No industry is recession-proof, but the video game business has at least been recession-resistant so far.

Microsoft is already publicly hinting that the 20 percent growth that they experienced this year is unlikely for next year, and they are starting to prepare for difficult times ahead. Cost cutting will continue to be one area that Microsoft will consider to stretch the most value for the gaming consumer’s entertainment dollar.

Some companies in the video game business are going to be better able to weather the tough times than others. Microsoft along with others will be able to handle the situation better than some. Much of the evidence of what we will see in 2009 will come to light at CES in January and E3 later in the year. Right now, we are starting to hear more whispers of developers scaling back on projects and looking to release fewer titles in 2009, with the titles that they are releasing being those that they feel are as close to a “sure thing” as possible.
Last modified on 05 December 2008
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