Ok - so we've all played the Wii... and are impressed by the future possibilities of gaming. Gaming is a cheap form of entertainment, but is it recession proof? Future has a chequered history of highs and lows, with regular mismanagement - and the share price has come way off from it's peaks... has it gone too far? With exclusive agreements to publish Xbox, Wii and Playstation titles, and the Wii bringing a whole new adult audience into the gaming market, one has to wonder whether sales will pick up.... any thoughts?
Interesting although personally, I am doubtful. I think games are going to get hammered as it's very discretionary spending. This article makes some good points - http://www.msnbc.msn.com/id/23472166
- The industry itself is only about 30 years old and trade groups weren't compiling numbers 17 years ago, when we had the last really nasty recession, so it’s hard to gauge how video games will fare when faced with a serious slowdown (plus as you say, the nature of the product offering has evolved to include a wider audience through the Wii).
- Video games are often compared to movies — a form of entertainment that traditionally fares pretty well during slow economic times. NPD analyst Anita Frazier cites a study the NPD Group recently conducted regarding consumers’ thoughts about the economy. Of the 2,000 adults polled, more than half said they were least likely to change spending habits on affordable purchases like books, movies, cosmetics or fragrances.
- However, the average video game retails for somewhere between $50-$60 (in the US) — and you need a system to play it on, so it's more expensive than a movie ticket. “Are the people who bought an Xbox 360 going to go out and buy more and more and more software to go on this thing? There are limits... You might buy five games or 10 games, but you’re not going to buy 100”.
Plus, even if they buy the games, are consumers really going to spend money on a magazine about the games in this climate??? That feels very discretionary to me. The hardcore gaming audience probably will but I can't see the wider audience that picks up the Wii doing this..
