Are Video Games Recession-Proof?

PlayStation LifeStyle thinks that some may be worried whether or not video games are still a good gift during these confusing economic times. Many want to know if the video games industry will survive the turbulent changes we have seen in many other sectors – because those who are spending money on a new console this Christmas want to know if the games will be around to support it.

PlayStation LifeStyle’s internal senior economics advisor is out this week (ha), but PSLS was able to track down the real experts at The Economist Magazine. Check out what they had to say…

HIGHLIGHTS:

– Global sales of console hardware and games software are expected to hit a record $49.9 billion this year

– There was no sign of weakness during America’s previous recession, in 2001

– 53% of American adults play video games of some kind (97% of teenagers)

– As retailers try to conserve cash and minimise inventories, many are restocking only the fastest-selling games

– Large publishers have invested heavily in creating games for the Xbox 360 and PlayStation 3, both of which have high-definition graphics that increase the cost of designing games to $15m-25m or more

– The big question, says Mr Harding-Rolls, is whether the newcomers brought into the market by the Wii will keep buying games

– Gaming may look recession-proof so far, but that could change in 2009