Gaming Industry under threat!

The gaming industry has been unable to protect themselves from upheaval.

Everybody is snatching up the 'Next-Gen' consoles, however costs to make such power machines will not be repaid untill 2008. Making these consoles is a big threat to game companies as they take on the risk of releasing these consoles under a significant amount of debt.

Computer game sales are expected to fall to a $3.7b market value. However, unlike the console market in which is expected to increase to approximately $12.2b, computer game developers have a steady income.

Gaming consoles are a big risk and the development of games is becoming increasingly expensive. The real money spinners are console games, but subject to the ups and downs of the hardware cycle as consoles launch or go out of fashion.