Wanda Meloni @ Gamasutra: "Many have noted that the gaming industry seems to be recession-proof. Monthly sales figures continue to show growth in the market. Even though NPD's figures for March are off 17% from the same period last year, NPD themselves noted that Easter generally provides a spike in sales, which fell in April this year and March last year. If you look at overall Q1 08 figures there was 0% change from Q1 09, while software was down just slightly at 2% for the quarter, hardware and accessories were up 1% and 3% respectively.
So even though the industry seems to be maintaining its position at retail, established publishers and studios are crumbling under the weight of swollen overhead and development costs. Development costs for current generation consoles have ballooned to $15-$25 million for two platform SKUs and $25-$30 million for all SKUs. That is twice as much as the last generation of consoles, with much of the cost increases attributable to the graphics complexity of consoles themselves."