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That Forbes Article....

by Jeff Shirley - April 8, 2001, 2:52 am EDT

How could that Forbes article POSSIBLY screw up the industry? It could.

Most of you loyal readers know about the recent Forbes article. You know… The one written by “industry analyst” Marcella Bernhard. And you probably read a lot of editorials about it on other websites. Ms. Bernhard wrote her article with what seems to be a minimal effort of research done into the actual gaming industry, and with such an obvious opinionated view. She thinks that “style” is not only a factor in how well a console fares on the market today, but an important one as well. Of course, many of the hardcore gamers (that includes you lovely readers.) will dismiss this article as not being worth the electronic paper its written on, but therein lies the problem with the industry today. Her article will have an effect on how investors perceive the industry. And we are defenseless to stop her claptrap from swaying peoples’ minds.

Many people read Forbes. That much is known. The magazine is a very exalted publication that deals with the economy in a very professional way. The problem, however, is that immense volume of respect can sometimes alter investors’ and analysts’ judgments for the worse. The article in question puts Nintendo at a 3rd place position and even an exit from the industry. Even if said article is vile, terrible, narrow-minded drivel (which it is), the damage is already done. Next thing you know, all the investors stop investing in Nintendo, and they usually DO what Forbes says. How ironic it is for a company to be ruined by the words of someone who knows virtually nothing about the industry in which that company works!

Now, you might think, “Well, Jeff, there are many websites dedicated to news about the games industry. And many people visit these websites and a regular or even daily basis. Why don’t you criticize the article for being slanderous, and therefore nullify its impact?” True… we do garner a lot of readers. Great idea really, but that amount is not, and never will be enough. Joe-Schmoe casual gamer doesn’t visit my site. I would optimistically estimate that about 10% of the games market is consisted of dedicated gamers, such as myself and the rest of the Internet. The rest is made up of casual gamers who usually go with what Gaming publications and other magazines have to say. We would be lucky to grab the attention of 10% of the casual gamers attention long enough for them to assess our debunking of volatile news. Even if I did stop them on the street, what could I say? There is no way I could convince this guy to believe a lowly writer for a gaming website to believe me and not Forbes. Even if I did, that still leaves the other 80%, and that’s enough to secure a monopoly, much less a majority market share, if of course, that 80% decides to do exactly what Forbes says. At least we can hope that these investors and casual gamers can realize that this article came from a magazine that does not routinely write about the games industry.

So… What can we do? Nothing really. Once some casual gets a hold of this article, he/she will use it in to influence purchases, investing decision, news reports, whatever. This article is somewhat like a virus, infecting everyone’s judgment. Just try to remember that for every prejudiced, unlearned Marcella Bernhard, there is an objective, well-researched Steven Kent.

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