Market’s Bearish Stance on Video Game Industry Unwarranted

According to Kaufman Brothers, overall sales in the video game industry exceeded expectations in November, with NPD reporting a lower-than-anticipated decline in November video game sales. The overall industry sales were higher than expected on account of robust hardware sales and a lower-than-anticipated decline in accessory sales.

Kaufman Brothers says that the “market's stance on industry performance remains too bearish.” The market is focusing on top-line growth, while it should be focusing on operating leverage that seems to have improved this holiday season, the analysts say.

Nintendo's Wii remains the best-selling console, followed by the hand-held Nintendo DS, Microsoft's(NASDAQ: MSFT)(FREE stock trend analysis) Xbox 360 and Sony's(NYSE: SNE)(FREE stock trend analysis) PlayStation3.