wraggster
July 4th, 2011, 16:23
Wedbush analyst Michael Pachter has warned publishers of the dangers of annualising their franchises.
Speaking in an investor note, he said the strategy remains questionable outside of sports brands.
"We question the strategy of annual franchises for any game except sports simulations. While Activision has been enormously successful with the Call of Duty franchise, we think its success has been largely a function of its online multiplayer offering, with a network effect driving ever higher packaged product sales.
"We are not optimistic that others can replicate that formula, and think that a balance between the EA approach (games every two years) and the Take-Two approach (games every six years) is appropriate."
One notable exception is Assassin's Creed, which seems to be growing commercially every year, although some gamers have expressed unhappiness over the decision to launch a third Ezio game this November, rather than a full-blown Assassin's Creed III.
Pachter added: "It is important to point out that Take-Two has not intentionally brought games out slower than the others, but rather is laser focused on game quality, and its internal studios have delivered phenomenal results.
"We still think that if Take-Two were able to deliver its key franchises every three or four years instead of every five or six, its share price would appreciate dramatically."
Take-Two chief operating officer Karl Slatoff said earlier this month that the publisher won't 'beat franchises to death' with annual releases.
http://www.computerandvideogames.com/310205/news/pachter-doubts-annual-franchise-strategy/?cid=OTC-RSS&attr=CVG-General-RSS
Speaking in an investor note, he said the strategy remains questionable outside of sports brands.
"We question the strategy of annual franchises for any game except sports simulations. While Activision has been enormously successful with the Call of Duty franchise, we think its success has been largely a function of its online multiplayer offering, with a network effect driving ever higher packaged product sales.
"We are not optimistic that others can replicate that formula, and think that a balance between the EA approach (games every two years) and the Take-Two approach (games every six years) is appropriate."
One notable exception is Assassin's Creed, which seems to be growing commercially every year, although some gamers have expressed unhappiness over the decision to launch a third Ezio game this November, rather than a full-blown Assassin's Creed III.
Pachter added: "It is important to point out that Take-Two has not intentionally brought games out slower than the others, but rather is laser focused on game quality, and its internal studios have delivered phenomenal results.
"We still think that if Take-Two were able to deliver its key franchises every three or four years instead of every five or six, its share price would appreciate dramatically."
Take-Two chief operating officer Karl Slatoff said earlier this month that the publisher won't 'beat franchises to death' with annual releases.
http://www.computerandvideogames.com/310205/news/pachter-doubts-annual-franchise-strategy/?cid=OTC-RSS&attr=CVG-General-RSS