Is the video game industry able to overcome economic downturn and recession?
Video game industry is generally considered "recession-proof" because people spend more time at home in a downturn, and games are a relatively inexpensive form of entertainment.
"One reason for the continued strength of the industry compared to other forms of entertainment comes from a number of sources," says Frazier. "Certainly, the expanded audience for gaming due to the availability of a wider variety of compelling content is a strong contributor."
Ana Frazier also speculates that the recession could actually be aiding video game sales: "Economic factors are also at play, given that a video game is a relatively inexpensive form of entertainment for the hours of value it provides," she says. Our Consumer Spending Indicator shows that video games is the category consumers are least likely to cut back on this holiday."
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- Despite the recession, a prolonged technology slump and Sept. 11, sales of video game hardware, software and accessories increased 43 percent last year, to a record $9.4 billion, according to the market research firm NPD Group.
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