SAN JOSE, Calif. Citing lackluster sales in the game-machine market, investment banking firm SG Cowen Securities Corp. has reduced its forecast for the video software game industry in both 2005 and 2006.
The U.S. video software game industry is projected to decline by 7.8 percent in 2005, according to SG Cowen (New York). Originally, the firm projected the market would fall by 4.1 percent in 2005.
The reduced forecast is due in part to supply constraints for Microsoft Inc.’s Xbox 360 game machine, which is more “severe” than originally thought, according to SG Cowen. Sales for Nintendo Ltd.’s Game Boy Advance have also been disappointing.
SG Cowen also reduced its estimates for software makers Activision, Electronic Arts and Take-Two.