Wedbush analyst says new console generation has rekindled faith in the games business.
Michael Pachter, analyst for Wedbush Securities, has said that the new wave of consoles has brought back investor confidence, with Sony's PS4 announcement kicking off the revival.
While the business prognosticator admitted that sales had been depressed in the US recently, he said there was “light at the end of the long tunnel”.
"With share prices for the game publishers beginning to rally after under-performing the market for most of the last three years. Once Sony announced the PS4 in February, investor confidence returned somewhat, and share prices for Activision, EA and Take-Two have all risen for most of the year," he commented.
Microsoft has remained tight-lipped about its plans for an Xbox 360, but Pachter said he expected the company unveil its plans before the Electronic Entertainment Expo show this summer.
He continued: “Once both next-generation consoles have been revealed, we expect further information on specifications, features and pricing to emerge at E3, beginning with Sony's and Microsoft's press conferences on June 10."