I actually don't understand why summer is a slow time for game releases anyway. Do they think kids play more games during the school year than on break? Isn't that the exact opposite of the reason why the release the big summer blockbuster movies?
Why don't they release the big summer blockbuster AAA games?
I don't get it either.
Spring and Summer are generally the worst due to a few factors. Spring still has the buyer weariness from the Holiday seasons. Summer, traditionally, is when most people go on vacation. Summer also has additional expenses related to "back to school." Whether that is saving money for school if you are in college, or just saving money to pay for your kids clothes and school supplies.
Past performance also shows that sales generally underperform when not sold during the "gift giving" season. There are exceptions to that obviously (anything made by Blizzard), but they are rather rare.
As to why the Holidays generate more sales? Well, that's when people are more likely to give gifts. Those that don't give gifts will often give money.
You aren't tapped out due to spending all that money during the holiday months as well as perhaps putting some money away for summertime vacations (Spring).
You aren't tapped out due to taking your summer vacation and/or saving for the upcoming school year. (Summer)
You aren't saving up money for the holiday season and potential winter vacations (Autumn).
Anyone that's spent any amount of time in retail dealing with games and electronics can easily tell you when foot traffic in those types of stores will start to ramp up.
It's not just an empty belief, it just happens to be when the most money flows into games and electroics in the Western world. It's no surprise that the holiday season can make or break a company's entire yearly profits. Do badly in the holiday quarter and your company's revenue and profits tank. Do well in the holiday quarter and you can easily erase 9 months of losing money and have an overall profit for the year.
For China, I wouldn't be surprised if the greatest retail spending for those types of things happened around Chinese New Year rather than the West's holiday months. And other non-western countries may have different times of greatest retail spending.
Regards,
SB
