Gamers: 1, Recession: 0
As consumers cut back on eating out, traveling, and various expenses, they happen to be investing more in home entertainment. The videogame industry came under great pressure last year as the economy started to slide, and analysts generally became skeptical of the videogame market’s ability to resist a strong recession. Michael Pachter needs to pat himself on the back, ‘cause he actually got this one right.
IbisWorld reports that videogame industry revenue is on target to reach an astounding $41.9 billion this year. In the U.S. alone last year, sales increased 19 percent over 2007, according to NPD Group. Michael Cai, vice president of videogame research at Interpret had this to say:
“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.”
If you’ve been watching store shelves, however, it’s obvious that publishers are definitely going out of their way to sell more inventory. For example, Mirror’s Edge has dropped to $40 at certain outlets, and even Call of Duty: World at War was available at K-mart for $29.99. While good for retailers who were scared of sticking with the standard $59.99 MSRP, this situation is also proving to publishers that slightly lower price tags really go a long way in boosting consumer confidence.