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Article: Video game makers find that Hollywood can be tough town.
- Article from:
- Los Angeles Business Journal
- Article date:
- May 16, 2005
- Author:
CopyrightCOPYRIGHT 2005 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Be careful what you wish for.
That's the lesson video game developers are learning after disappointing results have sent their shares skidding.
Products of the technology industry, video game developers have encouraged investors to look at their business as entertainment--striking high-profile deals with Hollywood and marking growth in video game revenues by comparing them with box office receipts. Now the gamers have hit a dry spell.
After three of the largest video game publishers--Electronic Arts Inc. and locally based Activision Inc. and THQ Inc.--all warned investors earlier this month that they expect to post losses in upcoming quarters, ...