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Pachter: Online Multiplayer Behind Sales Decline

Pachter: Online Multiplayer Behind Sales Decline

Michael Pachter is a high-profile gaming research analyst for Wedbush Morgan Securities. He is known for making controversial predictions ,some of which became true. Previously he predicted that Micrsoft will increase Xbox live Gold Subscription fees before it eventually did.

In his latest quote, he reckons that the online multiplayer model will have to change in order to cope with the decline in games sales. ‘We still believe that the biggest driver of the sales declines over the last 18 months is online multiplayer functionality, with an estimated 25m people playing many titles for hours on end’, he told investors.

‘Based upon statements made by Microsoft earlier this year, it appears that millions of people are playing multiplayer games online for an average of 10 hours a week, making a serious dent in the time available to play other games.’

He continues: ‘We remain convinced that the popularity of online multiplayer gaming has caused a decline in overall packaged product sales, and we expect this decline to persist unless the publishers change the multiplayer model.’

He reckons that publishers will eventually offer premium multiplayer features to generate more revenues.

Proofreading Essay College ‘This can, of course, take many forms, including doing nothing, adding premium services for a fee, or limiting the quantity of multiplayer content that is provided for free’.

‘While we expect the publishers to continue to offer free multiplayer content that is similar in quality to what is offered today; we expect the publishers to channel their efforts on improvements to multiplayer by offering a premium subscription service, in the hopes of driving an ever- increasing number of customers to a pay service.’

‘Once the publishers settle on a business model for monetizing multiplayer online game play, we expect investors to again favour the sector, and we expect to see multiples expand.’

Pachter has previously predicted that Activision will eventually charge for online multiplayer for Call of Duty given the huge popularity of the game but later Activision denied.

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