Analysts are known for scrutinizing trends and then making predictions based on those trends. In this case, David Cole of DFC Intelligence has his own take on the Xbox 360's performance in Europe. Interestingly, it includes a predicted switching of loyalties as well. Analyze the details in the full article after the jump.

If you've been keeping up with Electronic Arts' efforts to buy out Take-Two Interactive, then we've got an interesting bit of behind-the-scenes news for you. It seems that EA's own John Riccitiello views the takeover bid as an offered helping hand to the publisher, and this in itself is not going good with quite a few of this industry's leading analysts. Check out all the details in the full article and see what you think about this little hubbub.

 

The very enlightened folks over at Gamasutra notes that David Cole of DFC Intelligence, Ed Barton of Screen Digest, and ABI Research director">Mike Wolf of ABI research, the professional analysts, the people who get paid to talk gaming business are willing to give their two cents regarding the current state of the Sony PlayStation Portable.

David Cole notes his mixed feelings towards the PSP. While he believes that Sony's handheld has proven that there's room in the market for two portable systems, and that there is demand for a more high-end portable platform, he feels that the PSP could use a new model. Cole notes Nintendo's success with that strategy, and cites the GBA SP, and the DS Lite.

Ed Barton, on the other hand believes that the only way the PSP can be seen as anything other than a success is by comparing it with the dominant Nintendo DS. Barton cites forecasts of PSP console and software sales, and an installed base that should be 29 million by the end of 2007. Not as dominant as the DS but definitely NOT a failure. He ads: "If this is 'failing,' then failure just got a huge brand makeover."

As for Mike Wolf, he believes that the prevalent perception that the platform is a "failure" is manly due to the device struggling to live up to Sony's marketing of the product. Which according to him is what the PS3 is going through today. He notes that Sony's swagger, bravado, and "we are the one to beat" attitude is to blame for the PSP's bad reputation.

Wolf also ads that Sony's effort to use the UMD format as an avenue for movie distribution was a really bad move, especially now that the world is trying to move towards digital distribution. UMD: decent for games, bad for movies. The cherry on the PSP bad rep cake according to Wolf is the reliance on Memory Sticks, he believes that although the device would have cost more, if it had a significant amount of flash memory, then the PSP would have been much more successful.

As for generating more excitement for the PSP, suggestions included taking advantage of the PSP-PS3 connection, focusing on community, integration with the Location Free client and Home, distinct console unique games with gameplay that highlights the PSP, less PSP to PS2 ports, more "rethought" games like Ratchet & Clank, and as noted by Ed Barton (something that you folks definitely agree with) "offering users ways to create and share gaming content."

Home *hack, cough* brew.

As for their forecast for the PSP this year and the next, most of them agree that the time is ripe for a new hardware iteration (more memory and battery), some even express that a hardware upgrade is more pertinent than a price cut. They note it would be a good time for Sony to improve on wireless downloadable content for the PSP. Although they're all eager to see a second PSP, Wolf notes that "Sony's too focused on the PS3 right now to deliver a new handheld in the next 18 months."

According to a recent report from DFC Intelligence, the portable gaming industry stands to outgrow its console-based counterpart within the next few years.

"Under the right scenario, by 2011 the combined installed base of the DS and PSP could exceed that for the Nintendo Wii, Sony PlayStation 3 and Microsoft Xbox 360," said DFC analyst David Cole, in line with DFC's recently released report, "The Market for Portable Video Games".

DFC's report further analyzed that in 2007, Nintendo and Sony potentially stand to earn US$ 10 billion in worldwide revenue via the DS and PSP portable gaming systems. The report also reiterated on the Nintendo DS' current sales success, and followed up with reassurance on the Sony PSP developing a solid sales market in the years to come - so long as Sony Computer Entertainment (SCE) backed up its portable with strong promotional support.

The report indicates that other groups standing to benefit from this trend are third-party publishers and developers of PC-based RPGs, MMOGs, and turn-based strategy games. This sounds pretty much on the mark - the Nintendo DS and Sony PSP have been picking up a healthy crop of the aforementioned genres. We're imagining video games like Field Commander, Maple Story, or Final Fantasy Tactics, which is a hint of the promising games these two portables will be receiving in the near future.