Most everyone has tightened the belt in this recession, but video game analysts are taking the logical approach: in a recession, people tend to stay home and hence, home entertainment goes on the rise.
According to a recent report from Reuters , analyst Toon van Beeck from IbisWorld expects industry revenue to hit $41.9 billion this year, and they also add that with the immense success of the Wii, female gamers have increased in number; they now make up about 38% of the gamer group. Wedbush Morgan analyst Michael Pachter chimed in to say that game sales are definitely on the upswing, but developers can't afford to slack off. Said Pachter:
"Videogame sales have been impacted the least from the global recession and there are no real signs of it slowing. In order to maintain this healthy growth momentum, however, the gaming industry needs to continue providing appealing content and innovative experiences to compete for consumers' entertainment time and share of wallet."
Many have asked if the industry is "recession-proof," and to support the theory, while much of the world spiraled downward last fall, international sales of video games actually rose. In 2008, game sales in the U.S. increased 19% over 2007. And in the first two months of this year, when many businesses were really feeling the crunch, U.S. game sales jumped 11%. IDC analyst Billy Pidgeon finished with this comment:
"What this means is that games will see double digit growth in North America and worldwide, but that gamers will consider purchases more carefully. Gaming enthusiasts will demand quality games and will not buy games that are considered second rate. The mainstream consumer will also buy fewer games but will be less savvy about quality."
Yep, many gamers are certainly being more selective…but they're still gonna buy their most anticipated titles.
"Gaming enthusiasts will demand quality games and will not buy games that are considered second rate"…
That is exactly what drives my purchasing decisions… a few games a year which are triple "A", and a few equally good PSN titles that demand attention…
I look closely at the quality of graphics, audio and game play; I only want the best in my collection. After having purchased a few titles that I feel do not warrant space on my shelf, I will duly sell, even if it means making a small loss on them and picking up one better game instead.
"i am home"
Last edited by Qubex on 4/2/2009 10:10:54 PM
Its hard with so many good games and so little money but I'll find a way
Man I thought games would be hit the most cause they cost so much, well kick ass.
Great article John, here's an area where Pachter is right, and Pidgeon makes a good point too.
I demands me the best. I think if anything, this economic crisis will be good for games in general. Garbage games will get no sales so in the end we wind up with better products.
Or we get good games like Valkyria that sell like crap because poor marketing.
I agree the marketing definitely hurt VC, but to be honest, strategy is a niche market to begin with, the sales were never going to be astronomical no matter how good it was.
Games are doing well, but for how long? We haven't hit rock bottom yet. This Recession could go either way. I'm hopeing for the best.
Yes cadpig, the jobs report out of the US was terrible yesterday, another 600K odd fired for the month of March alone 🙁 … it makes me cringe…
"i am home"
Last edited by Qubex on 4/2/2009 11:34:30 PM
Lucky You People Overseas… The Games Here Are Mad Expensive, When Gears 2 N Resistance2 Came Out, Those Games Was Like 100 BUCKS! That's An Insane PriceTag, N Somehow They Still Sold Out Completely.
Since the days of the original PS, I've been real picky with the games I buy, especially with this generation. Stuff I buy goes in my collection.
Burn, Zombie Burn!
…The last game you'll ever need, and it costs about the same as a pizza.
Is it good?
You kind of predicted this last year didn't you? With more people not having the money to go out and socialize, they are spending the money on entertainment that they can do at home.
Nice to see that I definitely went to school for the wrong career. See what happens when you listen to your parents instead of doing what you want? LOL
Actually when I graduated, the idea of a career as a video game programmer wasn't exactly a talked about option, I didn't know about it.
In a recession we save our money for what matters most and which will give us the most entertainment for the dollar. Video games is of age, and it brings a tear to my eye.
Of Age for Getting it OOOOOON!
If the games industry is "recession proof" then why is Midway about to die? (Food for Thought)
I agree with Worldendswithme and Qubex i am very pickie with what i buy for games, for the PS3 only the best will do i have gotten a few that man they were a waste of money. For my Wii I don't worry as much right now we're playing Rayman raving Rabbids, i like tossing the cows LOL.
For the PS3 i have the best that i think are worthy of the price of what they are and i do buy on PSN sometimes.
The recession –
Eat junk food, and sit on your butt and play video games.
I mean, you can't get a job anyways…