Is the video-game industry recession-proof?

Whether you think we're in one or headed for one, chances are you've got recession on the brain. So do video-game companies, but for different reasons: Many CEOs think the industry can survive an economic downturn without much of a bump.

It's true that video games defied the otherwise discouraging retail sales figures of December 2007. But are video games truly recession-proof?

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Tempist3930d ago

This article fails to look at the bigger picture. You know, the one that includes Europe and Japan for selling games. Not to mention that Canadians don't really have recession fears, helped in most part now that US games are somewhat cheaper given the US dollar.

Sure it maybe game over for the US, but the rest of the world is game on.

wageslave3930d ago

The USA is the largest producer and consumer of Video Games.

Yes, there is more, but the USA happens to be the largest player.

That said, on a wider note, a downturn in the US economy effects the whole world. They are a pretty important economy, and in these days, the economies are widely mingled.

kewlkat0073930d ago

at the "So-Called" Video Game Crash of 83, then NINTENDO came out to save the Industry.

The way I see it, back in the day, when video Game consoles, like Mattel, Coleco, Atari, and Magnavox, went under, "PC COMPUTING" was on it's way up. "ARCADES" were flourishing back in the day. RETAILERS were still selling the goods. Gamers could still find something to play.

You flash forward to today and what do we see, ARCADES are DEAD, PC GAMING in trouble because of Piracy. ECONOMIES are not doing as well. So what is there left, just the CONSOLES to pick up all the slack in the Video Gaming BIZ.

Thanks for the Competition (between all) that we have today, to keep the Gaming business flourishing but what is happening to all those PC/Arcade gamers? Are they buying consoles/games?

I feel like, regardless of console numbers a lot of the Gaming Biz is somewhat still dying...not sure if it will hit another wall though but it's not that same as it used to be. you will never get everybody on just consoles.

Tempist3930d ago

I happen to still buy PC games and Console games. The appeal of Consoles is the pick up and go, where as PCs have constantly costly requirements each year. That problem is easily rectified with better development for lower PC requirements, not pumping out Crysis style games every year.

wageslave3930d ago

"what is happening to all those PC/Arcade gamers? Are they buying consoles/games?"

Yes. At the height of The Arcade, there was a very big gap between the home machines of the day, and what was possible in a dedicated arcade machine.

Now days, the consoles are very capable of putting a good experience in everyone's home.

And, we've also seen a decrease in population density -- people just dont leave their houses anymore.