The Size of the Strategy Market:
For the record, I like Matrix Games too, but I am sure everyone just thinks am paid to say that
Zap asked what the state of the strategty market is, in general. Since its my job to know, roughly speaking, these things, I may as well give an answer!
In the late 90s the strategy market fragmented into two parts, and if you return to some other thread going some would classify these as RTS and TBS (Turn Based). However, it is more accurate to describe them as action-strategy and tactical-strategy. Yes, a few games overlap those definitions but lets just leave it like that.
My disclaimer is that market fragmentation isn't bad, it allows smaller companies an opportunity to compete, and this is where Matrix has found a strong foothold. The action-strategy genre experienced exponential growth during the late 90s and early 2000s. Their advantage is a youthful audience (high disposable income) and graphical superiority to the tactical bretheren. However, in looking back we can see that this was the beginning of the end: The Action-Strategy genre stopped growing because innovation slowed down and the continual advancement of graphical interfaces was causing the development costs to increase. What you now see in this fragment of the market are those that invested most heavily into it are either diverging (World of Warcraft) or liquidating (Strategy First). The "RTSs" are going to settle into the same 'trend' as TBS games in the near future, with a small (relative compared to the RTS boom) and loyal fanbase.
The older market, tactical-strategy games, has a few advantages. A) An older audience, which is subject to a higher level of repurchase (Older people, in general, trust a company they know to release a good game). B) A low development cost (relative to action-strategy games, on average). I believe this market growth is below the average for all PC Games, however, I do not believe it to be in decline (As, for instance, Adventure games are and have been for years).
On the same note, related to Matrix, without doing any analysing, I believe Matrix Games is currently growing in both profits and market share faster than the average market growth for our industry.
What that means: It means Matrix Games will continue to grow and (consiquently) bring the best strategy games to our fans. While the industry may be in a level of slow growth, Matrix Games is not. As for our competition, I have no idea, you'll have to ask them yourself
However, my final note is: Matrix Games publishes strategy games. Our focus has been (and will continue to be) tactical strategy games, but when a great action-strategy game comes along (some would consider HTTR, but right now I am talking about I of the Enemy and Starshatter) we don't hesitate to bring that to our fans as well. The best way to protect yourself in ANY investment (this is important for all you people with investments) is to diversify your portfolio, otherwise you'll end up in the current position of SOME strategy publishers, with rising costs, a stagnent market, and a falling market share.
I bet nobody figured that question would get answered, but there you go!
-Joe Lieberman