For years, executives like Nintendo's Reggie Fils-Aime have said that the video game industry is recession proof. But this year, the US$22-billion industry that's responsible for Grand Theft Auto IV for young adults, exercise games for the suckers, and the Mario games for the young and young at heart has been hurting.
To the extent that games provide consumers with engaging interactive entertainment for US$60 - sometimes 100 hours' worth as in the post-apocalyptic Fallout 3 - it's an industry that deserves to fly high in the recession. But the game industry has fired nearly 12% of its work force since last July (8,450 folks), according to Wanda Meloni, an analyst at M2. There may be more to come, too.