Xbox Live Arcade still to peak, says analysts

Think Xbox Live Arcade has peaked? You're wrong, according to the analysts.

A group of analysts, including Wedbush's Michael Pachter and EEDAR's Jesse Divnich, has said that Microsoft still hasn't hit full power with the service just yet.

It comes as Ron Carmel of 2DBoy, the makers of World of Goo, surveyed 200 indie developers, and noted that less devs were putting in time to do XBLA while more games are appearing on PSN.

"In terms of digital games delivered through a home console, Microsoft will continue to be the market leaders," Divnich told Eurogamer.

"I am not disagreeing with Mr. Carmel, I believe some of his points are valid and any digital service provider has its own restrictions and hurdles. Not every game is the right fit for every service.

"We certainly are seeing some fracturing among developers, and Xbox Live and PSN are no longer the only option for game distribution."

Pachman chimed in by noting "we haven't had a Braid or Limbo so far this year," in terms of caliber of what those games have done for XBLA.

"As the 360 price comes down and the installed base continues to grow, there should be a significantly larger addressable market for XBLA games, so I think it continues to grow," Pachter added.

"Microsoft should take a look at Ron Carmel's piece, which eloquently makes the case (and backs it up with data) that XBLA has peaked for a specific group of independent developers who are responsible for high quality games that outsell the average XBLA game," added Billy Pidgeon of M2 Research.

"Sony is acquiring more unique content for PSN, and in many cases it's exclusive content, which will cost Sony more but will clearly differentiate their online games store from XBLA and other competition."

There's more analysis through the link.