Industry Insiders Discuss ESA, E3's Future

What's the fate of E3, and of the Entertainment Software Association? It's worth examining in light of recent events. This morning we broke the news that two major publishers, Activision and Vivendi, have decided to take a pass on the event and exit the trade association, while other companies have withdrawn their E3 attendance as well. At the same time, the ESA appears to be facing stirrings of industry discontent with the ESA's leadership, namely its current president, Mike Gallagher.

E3 is not the boon to publishers that it once was, says Penny Arcade's director of business development Robert Khoo, who as the organizer of the PAX fan expo clearly has an interest, to say the least, in how things turn out.

"The reason that E3 imploded in recent years was because the publishers felt that it turned into this sort of pissing contest between them... where they were trying to figure out who could one-up each other," Khoo said. "They all thought to themselves that it just wasn't worth it."

Pachter: Microsoft Doesn't Need To Be First, Just Rich

"I personally think that, with a lot of respect for the Microsoft guys...I think they're foolish to even worry about who's first and who's second. I think that's just stupid.

Analyst: Take-Two Talks Buyout Before GTA IV

Despite predicting fiscal year sales of Grand Theft Auto IV to reach 9 million, with 6 million shipping out the first week, Wedbush Morgan analyst Michael Pachter believes that Take-Two is ready to talk EA buyout. Citing a poor lineup over the next year, with major sequels such as BioShock 2 a long way off, Pachter believes that Take-Two will abandon it's stance on not discussing a potential buyout until after GTA IV is released.

"We expect that in order to save face, Take-Two management will withdraw its demand that any discussions wait until after the launch of GTA IV, and we think that management will engage in discussions with EA,"

GTA IV to sell 9m units, ship 6m in first week [GamesIndustry.biz]

Analyst Predicts Death Of 360 In Japan

Sony may be worried following the 360 price drop in Europe, but according to Wedbush Morgan analyst Michael Pachter, they don't have much to be concerned about. In fact, Pachter predicts that the PS3 will beat out the Xbox 360 in Japan ("killing" it) and Europe (by 20%-40%). He also says that the PS3 may pull ahead of the Xbox 360 in month-on-month sales:

"In the US, I think it will be close all year, with 360 outselling PS3 most months due to its lower price points (at least as long as it remains lower priced)," Pachter told videogaming247. "Sony gains a huge competitive advantage when HD monitor sales pick up at holiday, as I expect retailers to push PS3 as a Blu-ray player to anyone buying an HD monitor. By year-end, I think PS3 will outsell the 360 in the US by a little."

Pachter on late 2008: "PS3 will likely outsell the 360 in Europe by 20%-40%, and will kill 360 in Japan" [videogaming247, via GamePro]

Pachter: EA Wants Take-Two For Sports, GTAIV Is "Gravy"

We've already heard EA's story recounting why they're interested in acquiring Take-Two, but analyst Michael Pachter gives the real scoop. And unlike many have claimed, Take-Two's appeal has very little to do with GTAIV, which he calls "gravy." It's all about the sports.

For EA, sports is enough to pay for the whole [$2 billion] thing. If you get rid of sports competition, you suddenly add Take Two's $200 million per year in sports revenue and EA doesn't compete on price anymore.

Pachter: Mass Effect Will Come to PS3

Wii and Xbox 360 Close In December

Pach attack! Analyst Michael Pachter is predicting a very close December in console sales. Based upon Thanksgiving figures in which the Wii edged out the 360, Pachter predicts the Wii winning December, but by the narrowest of margins:

These figures imply that Microsoft will sell 1.5 million Xbox 360s in December in the U.S., that Nintendo will sell 1.7 million Wiis, and that Sony will sell around 800,000 PS3s.

Wii and Xbox 360 Sales Neck and Neck in December, says Analyst [gamedaily] [image]

Another Analyst On Nintendo Third Party

Pachter: Nintendo Fine, Mitchell Naive

The Strategy of Game Delays