Wednesday, February 16, 2011

COD can collapse like Guitar Hero?

In a paper published by IndustryGamers, some analysts have questioned about the future of the Call of Duty series. That the series of Activision is going to collapse like the business of Guitar Hero? Not to Michael Pachter of Wedbush Morgan, which states that the two situations are not comparable. "Guitar Hero is a license that people buy once, because the devices are excellent.

Once saturated the catchment area, new users get only half of the new owners of the console. Call of Duty, however, has a community vibrant online, which allows the series to grow. When a new version, the network effect leads many players to buy the game for so did their friends. The only risk for the series can go from rivals but not a drop in interest.

" "The fashion of Call of Duty will not, unless Activision does not open the door to his rivals by launching a game is not up to," said Pachter. Along the same lines also the view of Colin Sebastian of Capital Markets: "Music games are a fad, like fitness game is to dance. But after years of growth of the franchise, Call of Duty would not put in the same category.

If Activision continues to maintain high quality standards and suggest new stories and work on the online multiplayer, COD do not see why it should fall. " Less optimistic instead Mike Hickey of Janco Partners, "All have experience in the entertainment cycle. Who shoots ahead as quickly as can be extinguished more quickly." Billy Pidgeon of M2 Research, exploiting the franchise is a profitable strategy in the short term but extremely risky in the long run.

The alternative to this business model? "Extending the life cycle of a license outpacing the publication of the sequel."

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