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Analyst Predicts Larger Than Expected 2006 Industry Rebound

| 6 Oct 2006 21:26

According to Pacific Crest Securities' Evan Wilson, sales of video games should improve for 2006 by nearly 20%.

The industry, which struggled with a weak PC lineup and the first phases of a generational shift in 2005, is expected to grow as much as 10% more than initially expected for 2006 according to Evan Wilson of Pacific Crest Securities. While the official NPD report for September remains a week out, Wilson predicts more than $400 million in September sales, which would be a 19% increase over the same time last year.

Wilson bases his predictions on record breaking sales of Madden, as well as successful sellers such as Lego Star Wars II, Saint's Row, and the continued success of Nintendo's DS Lite. Said Wilson, "The growth is attributed to resurgent spending on PS2, significant growth in the Nintendo DS, the addition of Xbox 360 sales, and very easy comparisons."

The analyst predicts $1.3 billion year for consoles on the back of continued strong sales for the Xbox 360 as well as the launch of the Nintendo Wii and Playstation 3.

Source: Gamespot

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