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Toy Stories: Video Game Industry Sales Fall 4 Percent in 2003
Aired January 27, 2004 - 06:49 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Well time now for a little 'Business Buzz.' Video gammers are searching for a bargain, but despite a bankruptcy, they can shop at FAO Schwarz in New York.
Carrie Lee reports from the Nasdaq market site -- Carrie.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Thank you, Fredricka.
Some people may be surprised by this video game news. Aging game machines and the lack of substantial price cuts took their toll on the video game industry in 2003. Sales slipped 4 percent from 2002. Totals came in at $11.2 billion.
Now the biggest area taking a hit, PC games, personal computing games. This, according to the NPD Group which tracks this group's sales. Sunk (ph) by the delay of key titles such as "Calf Life 2 (ph)" and "Doom 3," 2003 sales came in at $1.2 billion, and that's down 14 percent from the prior year. Software sales slightly higher but still, not exactly robust. So that's the latest on video games.
Now on to FAO Schwarz. The flagship toy store in New York's Fifth Avenue location will be preserved as a cultural treasure. That's what the company, the investment firm acquiring part of the bankrupt FAO Inc. for $41 million, is saying. The purchase of FAO Schwarz stores in New York as well as Las Vegas and the company's Internet and catalog businesses was approved in federal bankruptcy court this week. Both stores will reopen or are expected to reopen after four to six weeks of renovation, Fredricka, so I'm sure that will make some children and former children very happy.
WHITFIELD: Yes, those big children, of course, very happy.
All right, looking ahead, the futures, ones to watch.
LEE: Things looking a little bit weak this morning after very nice gains yesterday. The Dow, the Nasdaq, the S&P 500 all up over 1 percent to the highest levels not seen since the September 11 attacks about two-and-a-half years ago.
McDonald's in focus today. This company swung to a profit in the recent quarter, reversing a loss a year ago. The stock was trading higher by about 2.5 percent in Europe. McDonald's one of the Dow 30 -- Fredricka.
WHITFIELD: All right, Carrie Lee, thank you.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
2003>
Aired January 27, 2004 - 06:49 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Well time now for a little 'Business Buzz.' Video gammers are searching for a bargain, but despite a bankruptcy, they can shop at FAO Schwarz in New York.
Carrie Lee reports from the Nasdaq market site -- Carrie.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Thank you, Fredricka.
Some people may be surprised by this video game news. Aging game machines and the lack of substantial price cuts took their toll on the video game industry in 2003. Sales slipped 4 percent from 2002. Totals came in at $11.2 billion.
Now the biggest area taking a hit, PC games, personal computing games. This, according to the NPD Group which tracks this group's sales. Sunk (ph) by the delay of key titles such as "Calf Life 2 (ph)" and "Doom 3," 2003 sales came in at $1.2 billion, and that's down 14 percent from the prior year. Software sales slightly higher but still, not exactly robust. So that's the latest on video games.
Now on to FAO Schwarz. The flagship toy store in New York's Fifth Avenue location will be preserved as a cultural treasure. That's what the company, the investment firm acquiring part of the bankrupt FAO Inc. for $41 million, is saying. The purchase of FAO Schwarz stores in New York as well as Las Vegas and the company's Internet and catalog businesses was approved in federal bankruptcy court this week. Both stores will reopen or are expected to reopen after four to six weeks of renovation, Fredricka, so I'm sure that will make some children and former children very happy.
WHITFIELD: Yes, those big children, of course, very happy.
All right, looking ahead, the futures, ones to watch.
LEE: Things looking a little bit weak this morning after very nice gains yesterday. The Dow, the Nasdaq, the S&P 500 all up over 1 percent to the highest levels not seen since the September 11 attacks about two-and-a-half years ago.
McDonald's in focus today. This company swung to a profit in the recent quarter, reversing a loss a year ago. The stock was trading higher by about 2.5 percent in Europe. McDonald's one of the Dow 30 -- Fredricka.
WHITFIELD: All right, Carrie Lee, thank you.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
2003>
