Saturday, November 29, 2008

Is The Video Game Industry Recession-Proof?

Daniel Terdiman, cNet:It would be tempting for those in the video game business to take some recent news - for instance, that October sales were through the roof, or that the latest World of Warcraft expansion broke the all-time record for single-day PC game sales - as proof that their industry may be immune from the deep despair confronting the global economy.And indeed, that seems to be exactly what many people in the industry are choosing to believe: that in rough times, people always spend money on entertainment, and that as entertainment goes, video game software and hardware offer much higher value than other options. In other words, the theory goes, the video game industry is recession-proof.But people holding to that notion may yet want to consider getting their resumes ready or holding off on buying that Porsche, since all optimism aside, the future may not be so bright. It's true that sales may be up in the short term, and look good for the holidays, but Wall Street doesn't appear to be impressed.