Video Game Sales to Avoid Economic Slowdown?

The general investment thesis behind video games is as follows (no particular order);

1) More gamers due to multiple generations of people that have played video games. Really since Atari in the 80s the number of "gamers" has been growing. As you start to think about Chinese/World Youth you understand that there are HUGE growth opportunities in the next 10-20 years in this segment.

2) TIME. I cannot empasize this enough. In the video below, the mom's explanation is what it is all bout. She buys a video game vs. taking her kids to a movie because a movie only lasts 2 hours and then it is done. The kids will be entertained for days so the cost per hour of entertainment is LESS with video games.

3) Dropping console prices = more units sold.

4) More games are being produced, which will stimulate demand. Now that the game developers have an idea what consoles consumers like, and the associated demographics/development costs/sales expectations with each console, they will make their investments accordingly.

My Take: I think this segment of the economy will be LESS impacted than other sectors this Christmas season. I think the consumer is REALLY pulling back the reins right now and that overall sales data will come out in early November. People think it will be bad but I think it will be WORSE than they think. I hate being pessimistic :( I think patience is the name of the game when it comes to investing right now. Cash is king

Dan Ross
http://www.BetterBizIdeas.com/

Even Red Hot China is starting to Slow Down/fall....

As my posts in the recent months have been U.S. economy focused I thought I would share some insights into what is regarded as the fastest growing economy in the world. The Chinese economy is forecast to be larger than Japan and the U.S. economy by 2015 :)

Chinese stocks had been trending upward at an ever accelerating rate (i.e. parabolic) since 2005. The parabolic nature of the Chinese rally came to an end as the US housing market/credit crisis began to take hold in Q4 2007. Currently, the iShares FTSE/Xinhua China 25 Index (FXI) trades within the confines of a significant downtrend.

I would also note that the Chinese government was trying to put curbs into their banking system and trying to have banks build up their capital base via loaning out all their $$$ during this time frame as well. With so much of their economy tied to their economic development (ie. real estate in China) the government had a good amount to be concerned about. The SMOG is INSANE. Having personally been to China some 15 years ago I'll attest that I was AMAZED to see entire DOWNTOWN projects (10-15 skyscrapers) going up at one time while several MAJOR 10-12 lane highways were being constructed as well.

Great charts - sign up today @ http://www.chartoftheday.com/






Source - http://www.chartoftheday.com/
Source - iShares

Dan Ross
http://www.BetterBizBooks.com

Housing Prices Holding Up? in DFW YES! Here's why...

http://news.yahoo.com/s/ap/20080327/ap_on_re_us/census_growing_cities;_ylt=AjPr7Kfz0vL2UnrxU.yZbvxH2ocA

This is why Dallas housing is holding up so well. POPULATION GROWTH IS PHENOMENAL, which drives the need for housing. It helps to absorb all the homes that are hitting the market due to the subprime mess.

Dan Ross
http://BetterBizBooks.com

Retail Strategy Slowdowns

http://www.usatoday.com/money/industries/retail/2008-02-27-retail-strategy-slowdown_N.htm

Great article that shows how retail strategies compare, their average shoppers, etc. Given a slowing economy I found it a VERY timely article.

Because, on Friday (3/28/08), JCPenney announced they were missing their EPS guidance for the 1st quarter and really put a shot across the bow for retail investors :)

Dan Ross
http://www.BetterBizBooks.com

7 Ways to Start your New Job Right...

Given the slowing economy I dusted off an old article that many people might want to consider reading.

http://finance.yahoo.com/expert/article/leadership/3327

Dan Ross
http://www.betterbizbooks.com/