Analysts: Game Industry Weathering Economic Downturn Options

[Xbox-Scene]

Analysts: Game Industry Weathering Economic Downturn Posted by XanTium | March 14 23:37 EST | News Category: GamingGeneral

From gamasutra.com: [QUOTE] Following the release of February's NPD sales figures, analysts have called out its particularly strong performance in light of macroeconomic downturns, calling the industry near 'recession-proof.' Said simExchange's Jesse Divnich, "Today, retailers announced that they have posted negative same store sales growth for February and many economists warned that the United States economy is currently in a recession or on the verge of one." "Irrespective to that," he continued, "the video game industry continues to post record growth and although no leisure/entertainment sector can be considered 'recession proof,' the video game industry continues to prove to be one of the very few industries to have the least elasticity to the current economic environment." [/QUOTE] Full Story: gamasutra.com

[0794]

i do find this article interesting because i would not have thought of the gaming industry as anything close to "recession-proof" - especially in relation to console sales. guess that it is good to know that people will still buy their video gaming products when money for shelter, food, and gas is tight...

[HotKnife420]

i do find this article interesting because i would not have thought of the gaming industry as anything close to "recession-proof" - especially in relation to console sales. guess that it is good to know that people will still buy their video gaming products when money for shelter, food, and gas is tight...

It's like crack, maaaaaaan.....

[bucko]

Isn't it great, America gets a recession so we have to catch the cold, kinda sucks.

[mrtj18]

i find this article intersting too. for example if i see that money is getting a little harder to come by and the economy is in a down turn everyones first thought is to stay at home and conserve money. If this happens ( which it is) i would turn around buy a nice long GOOD game (rpg to be exact) with good reviews that i know for a fact is good, and i can play for a while to weather out the "economy storm". And once it gets better again, its back to the clubs & bars for me! So it seems im not the only one with this idea!

[Bandit5317]

i find this article intersting too. for example if i see that money is getting a little harder to come by and the economy is in a down turn everyones first thought is to stay at home and conserve money. If this happens ( which it is) i would turn around buy a nice long GOOD game (rpg to be exact) with good reviews that i know for a fact is good, and i can play for a while to weather out the "economy storm". And once it gets better again, its back to the clubs & bars for me! So it seems im not the only one with this idea!

My thoughts exactly. What better way to save money on entertainment then buying a good game that will last you a month or two instead of going to a restaurant for one night plus gas. Maybe not the most social solution (xbox live doesn't cut it for some people ), but much more practical and cheaper.

[trey85stang]

a $60 video game during a recession is cheaper form of entertainment then going out drinking and partying for a night.

[twistedsymphony]

a $60 video game during a recession is cheaper form of entertainment then going out drinking and partying for a night.

That's absolutely right. When money is tight you stop going out to restaurants you stop going out to bars and clubs, no road trips, no vacations, you'll live with your current wardrobe, your current furniture, and your current car etc. You cut back on cell phone use, cancel extravagant subscriptions like hbo, or netflics that cost you an extra $20 a month/ ($200+ a year)

so if you're cutting back on all that and sitting at home you have 2 options
1. sit and watch basic cable
2. spend $30-$60 on a game or two that you can play for hundreds of hours online.


in short... when money is tight people stay home, when people stay home they buy games...