The recession has hit us all in some way or another i think you’ll agree, and in more than just the UK. I am currently in Canada and although the economy hasn’t been hit as hard as the UK’s has, there has still been some impact.
Many people would actually say that the worst of the global recession is behind us now but gaming giants Nintendo, Sony and Microsoft would disagree.
The gaming market….an industry that’s always going to be strong stumped analysts this year when it remained strong throughout the recession, however it has finally began to feel the impact of reduced spending.
We first saw sales begin to drop in March but NPD Group has just released it’s numbers for June, and they show a slightly more alarming drop than we have seen in recent months. US sales dropped by 29%, which is bad as this was a record drop, but console sales had dropped more to 38% (wow!).
Now this is worrying, as the only thing that will actually increase spending in the gamer market is if companies lower their prices, and this would mean less revenue for them. So what will happen with the gamer market remains to be seen, but something needs to happen and fast so it will be interesting to see how the big companies react to these figures.
Via BoyGENIUSReport [image source: CRAVE]
3 thoughts on “Recession Finally Hits Video Game Market!”
The biggest impact the recession might have on the video game industry is with the development of new game titles. It takes a tremendous amount of capital up front to begin the creation process of a new game title and 2/3 of the projects never see the light of day. Some developers are now looking to tap into the social media revolution and turn to consumers for funding in return for crowdsourced customization of the entire game. Check it out: http://ow.ly/ipPE
You’re right, console prices has been cut down and I think that’s the best thing to do. You know, it’s better to earn less than nothing at all. But I don’t think MMOG like Aion online and WoW will be affected by the recession, they’re great games that gamers couldn’t resist.
Our home business was really affected by the Economic recession, we have to cut jobs just to cover up our losses. fortunately, we have already recovered. .