It was just a matter of time before the global recession impacted the game industry. While games made a record $21 billion last year, the fallout is being felt by publishers as big as Electronic Arts. The good news for gamers is that the sluggish economy will end up meaning lower prices for game hardware and software in the coming months.
One of the issues at retail is the fact that Sony's PlayStation 2 continues to sell well. That means in addition to PS3 and PSP games, there are still new PS2 games being released. Add in Xbox 360, Nintendo DS, Wii and PC and that's a lot of games vying for shelf space. That's making the game industry more and more a franchise-driven industry as even new releases that don't have a number in their name like Mirror's Edge or Dead Space have to compete with sequels as well as catalog games and even PS2 games.