INDUSTRIAL conglomerate DCC will be a beneficiary of the smashing success of Halo 3, the latest computer game for Microsoft's Xbox 360 console, if sales in Ireland replicate patterns in the US, where Halo 3's $300m in sales in the first week helped doubled sales of the Xbox.
DCC's SerCom division, which sells and distributes IT products and consumer electronics, holds the sole distribution rights for the Microsoft Xbox 360 in Ireland and the UK, so any increase in Xbox sales on the back of the Halo 3 release will redound to DCC's benefit.
SerCom is DCC's secondlargest division after energy and accounts for approximately 30% of DCC's group revenues and 24% of operating profits. Last year it returned a 33.8m operating profit.
DCC declined to say how much Xbox and other Microsoft products contributed to its 2006 figures, although an upbeat Davy note said the market is undervaluing the groups operational value by up to 35% at the moment.
Because each games console has its key game franchises, new games lift demand for both console and accessories, together with sales of the title itself. Microsoft, therefore, is predicting Halo 3 . . . its key weapon against both the Sony Playstation and the Nintendo Wii . . . will continue to drive sales of the Xbox in the run-up to Christmas.
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