Games industry needs a successful Nintendo 3DS launch

The games industry will be looking to the 3DS to kick-start it back into growth, according to one analyst.

Wedbush Securities has altered its predictions for the videogame industry over the next few years, according to a report on gamesindustry.biz.

The group had previously predicted a 5 per cent growth for 2010, but now claims sales will remain flat for the year. However, in 2011 growth is forecast at 13 per cent growth, followed by eight per cent in 2012, and six per cent in 2013.

In an interview with gamesindustry, Patchter said "the primary driver for sales growth in 2011-2013 is the introduction of the Nintendo 3DS, which we expect to spurt hardware and software sales dramatically for the next two years."

This all makes sense. Indications are that the major consoles (with the possible exception of the Sony PlayStation 3) are starting to reach the end of their life cycles. This would naturally result in a flatter market, until it could again be stimulated with hardware refreshes.

However, Wedbush is putting a great deal of faith into the effect the 3DS will have on the market. It's still an unknown quantity, I believe - yes, the reception it had at E3 was spectacular, but there are lingering questions on how marketable the console will be once the hype cycle dies down, and whether Nintendo's online strategy will be able to be competitive into the future.

Should the Nintendo 3DS fail (a possibility we all hope doesn't come to pass), then Wedbush's predictions will almost certainly fail to come to fruition.