Market Trends and Video Games: A Tumultuous Relationship (part 2)

Ethan of Infinite Bits continues his analysis of how the recession should affect the gaming industry.

"Entertaining as the console wars are, all sides will suffer heavy casualties in this recession, but what will this economy mean for those things we play on the actual consoles? The good news for game developers is that software sales should rise even as hardware sales are falling. If the chief advantage of games in a recession is the high marginal value of each new game (that is, a lot of play for not much extra money spent), then you would expect the gaming industry to experience a shift in revenue to favor software over hardware."

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