PC Games Face Own 'Doom'

PC game sales are largely being cannibalized by sales of titles made for Sony's PlayStation 2 and other consoles, analysts say.

Consumers can spend about $150 to buy the latest console and be assured that they can run all of the latest games. In contrast, they'd have to spend $2,000 or more to buy a PC that has enough power to play games such as Doom 3.

With that kind of difference in cost, consumers have largely moved to consoles as their gaming platform. For instance, Sony has sold some 68 million of its two PlayStations combined in North America.

"It's pretty obvious that the number of consumers that can spend two grand is smaller than the number that can spend 200 bucks," said Norm Conley, a portfolio manager for JAG Advisors and a contributor to TheStreet.com's sister site, RealMoney.com.

But it's more than just a lower price. As might be expected, consoles often are better suited for games than PCs. Playing head-to-head games against family members in your house is a lot easier over a big-screen TV and with the multiple controllers used on a console than on a PC screen and keyboard.

Outside of simulation games such as Atari's(ATAR Quote) Civilization III and a few other genres, "the days of pure PC-only titles ... are going away," said Joe Spiegel, a fund manager with Dalek Capital.

With gamers increasingly focused on consoles, the gamemakers have shifted their focus, too. The latest and greatest titles typically come out for consoles long before they make it to the PC, if they ever do make it over, they note. The biggest games of last year, for instance, were Microsoft's Halo 2 and Take-Two Interactive's(TTWO Quote) Grand Theft Auto, neither of which is yet available for the PC.

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