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Analyzing the Analysts, Episode One

We've all seen their work. "Analysts predict PS3 price drop by September." "New DS to be released by Nintendo." "Wii will be the top selling console of 2007." Analysts seem to descend from their mountaintops once a month to tell us the future of the video game industry. So what secret rituals do these soothsayers conduct to get their predictions? And, more importantly, how often are these predictions right?

After a look at ten analysts, 100 predictions, and first hand accounts from video game industry analysts Michael Pachter of Wedbush Morgan Securities and Jesse Divnich of The simExchange, and founder of The simExchange Brian Shiau, we managed to gain a little bit of insight into the murky crystal ball used to prognosticate and pontificate.

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