1 Tech Industry So Successful It's Killing Itself

The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and Chief Technology Officer Jeremy Phillips discuss topics across the investing world.

Everywhere you look, there are signs of the video game industry's success: Mobile phones delivering games are booming, and the talk in entertainment is next-generation "smart TVs" with built-in gaming. Yet, the video game industry as we know it is in a tailspin. Video game researcher NPD reported that sales of video games fell 34% in January alone!

As Jeremy and Eric discuss, even while an industry grows in terms of overall use, that doesn't always equal additional profits for the industry itself. Take, for example, newspapers: While more people might read newspapers online, profits went into a tailspin as the business model of the industry was disrupted. Similarly, the traditional model of selling video games at $60 a pop is now being disrupted by cheaper mobile games. Simply put, the profits in video games are beginning to shift to the companies who own the gaming platforms, like Apple and Microsoft.

To learn more about the revolution disrupting video games, and how you can get ahead and profit from it, The Motley Fool has just released a free report on mobile named "The Next Trillion-Dollar Revolution." Access it by clicking here -- it's free.

Eric Bleeker has no positions in the stocks mentioned above. Jeremy Phillips has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Activision Blizzard, Google, and Take-Two Interactive. Motley Fool newsletter services recommend Apple, Activision Blizzard, Google, and Take-Two Interactive . Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 1781537, ~/Articles/ArticleHandler.aspx, 4/18/2014 7:58:47 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement