The DCC market at year's end.(Digital Content Creation)

In its updated "Digital Content Creation Report," Jon Peddie Research calls attention to several industry trends that emerged over the past 12 months, as well as provides a forecast for 2005.

3D modeling and animation software experienced growth in 2004, a trend expected to continue throughout 2005. The 3D modeling and animation segment saw other profound changes in 2004 as well. Alias emerged from the shelter of parent company SGI to go private and shook up the market with a dramatic price cut for Maya, a move that increased unit shipments and overall revenue. Competitor Softimage, owned by Avid, followed suit with price reductions, including a $495 version of XSI. The trend has driven down prices across the board, which is offset by increased unit sales. Price-cutting has been beneficial overall and has spurred sales as artists show a willingness to experiment with new products.

In 2004, several companies hoped to build a high-volume consumer market with CD/DVD-burning products, an idea that originally spurred the organization of Roxio. Pinnacle acquired VOB Computersysteme GmbH, adding CD/DVD-burning products to its arsenal. With OEM deals for its MyDVD products, Sonic Solutions is the venerable market leader. Moreover, Roxio sold its CD/DVD ...