Pachter: 'Games industry is in decline'

Wedbush Morgan analyst Michael Pachter has claimed that the games industry is in a state of decline.

Speaking to MCV, the industry expert said that May's NPD figures indicate that several high-profile games have performed far below expectations.

Pachter pointed out that Alan Wake, Prince Of Persia, Blur, Shrek, Lost Planet 2, Iron Man 2 and Skate 3 all managed less than 200,000 units.

"The May lineup was indeed stacked in favour of dramatic growth, but despite May's easy percentage and dollar comparisons and long-anticipated debuts for a handful of games, it became clear that several of May's games performed well below expectations as the month progressed," he said.

The analyst attributed the downturn to developers including "more robust multiplayer content" in their games, eliminating the need for customers to purchase new titles. He also cited the rise of Facebook and iPhone games.

He added: "We expect investors to remain spooked by the May results, as they are beginning to reinforce the notion that the video game industry is in a state of persistent secular decline."