Wedbush Comments On Video Game Industry

On Wednesday, analysts at Wedbush commented on December 2014 video game industry.

For the month on November Wedbush’s Video Game Index was up 5 percent, “reflecting domestic macroeconomic strength, international stimulus programs, and falling oil prices.”

Looking forward, Michael Pachter stated, “We think that digital downloads are the story for 2014...We estimate that digital downloads comprise at least 10% of year-to-date software sales, and expect the percentage to approach 15% for November and December. We also expect a rebound in overall game sales in November and December, but caution that the NPD results will only paint a portion of the full picture.”

Moreover, Pachter writes, “we continue to believe that overall demand for games will grow for at least the next three years, as we believe that the console installed base will grow more rapidly in the current cycle than in the prior cycle, peaking at least a year earlier than last time.”

Video game stocks are mixed in Thursday’s trade with Microsoft Corporation MSFT leading the pack up 1.16 percent.