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Thread: Will the looming worldwide recession impact the VG industry?

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    Default Will the looming worldwide recession impact the VG industry?

    Do you think the looming worldwide downturn / recession will have any impact on the videogame race in 2008?

    Gaming, with any entertainment / luxury item will be amoung the first and heaviest hit therefore what implication will this have on the three big videogame companies?

    Will Nintendo be hardest hit with their reliance on 'casual' gamers who would be more willing to lay down their 'casual' hobby during hard times or will it be Sony hardest hit with it's ticket price being the highest of the big three and whilst it's trying to hit it's stide this year it could be bad timing?

    I'm from the UK and can remember the last big recession of the late 80's/early 90's but i am to young to remember it's impact on the industry, can history tell us anything?

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    I just read this article, which is surprizingly relevant to the topic at hand.

    http://arstechnica.com/news.ars/post...ate-sales.html
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    Did the depression slow down the movie industry in the 30s?

    The answer is no, the opposite happened. When times are tough, people will always find the money for entertainment.
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    Not from what I've seen. Gamestores are always packed with people and the largest turn out at the Midwest Gaming Classic yet seems to back up the idea that its recession proof.
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    If anything piracy of games will increase just download the stuff or turn to playing older cheaper stuff. It may hurt people buying hardware and new games etc but it won't hurt to much. Sure as hell won't stop me I'd forgo some food first

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    During the dot-com crash in 2000-2001, video game sales stayed pretty much the same. So I can't see the coming recession affecting video game sales that much.
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    I say it will take a toll on everything. We are not talking full out recession of VG's but I imagine studios closing, being bought up by larger companies, and a slight reduction of titles coming to market will take place. Other than that I doubt anything major will happen. As it was stated above, "people will always find the money for entertainment" (I.E. video games, movies, booze, and strippers etc)

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    Quote Originally Posted by Evan_G View Post
    Did the depression slow down the movie industry in the 30s?

    The answer is no, the opposite happened. When times are tough, people will always find the money for entertainment.
    I agree with this.

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    Nope. How many bills does an average 13-25 yo have these days? Young people will always have money for this stuff because they are still young and have money to blow on videogames because they have nothing else to pay for.
    Last edited by SaturnFan; 04-19-2008 at 09:26 PM.

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    the effect it will have on the PC game industry will be more games released as online downloads instead of as retail releases with manuals and inserts
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    Could increase software sales for existing systems and decrease hardware sales for next gen systems. People with less money tend to stay home more, but are also more reluctant to make large investments in new things.

    Which would be fine with me, because that could force developers to push the existing hardware to the limits and extend the life cycles of the consoles that we already own.
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    Quote Originally Posted by Evan_G View Post
    When times are tough, people will always find the money for entertainment.
    Especially when those times are depressing, and people need all the entertainment they can get.

    Quote Originally Posted by tmc
    Will Nintendo be hardest hit with their reliance on 'casual' gamers who would be more willing to lay down their 'casual' hobby during hard times
    I doubt it. Nintendo's games generally appeal to both the "casual" and the "hardcore". The more likely companies to succumb to a recession would be companies that release sub-par games, like THQ and Majesco. Players will still pay for the Halo's, the Madden's, and the Mario's... even if their monies are low... The also-rans and the small houses are the ones that will suffer, as people will be out of money before they choose to buy crappy movie licenses and such.

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    Nintendo Hurt in sales?
    Nintndo is more profitable now than they have ever been. They could sell zero software and still be ahead. Why? They are smart and cunning when making a game system...they always sell at a profit.

    Honestly, with the game industry surging ahead like there is no tomorrow, I dont think a recession is going to give the game industry any problems. I do think that at some point the game market is going to have a correction. You can only make so many average games and spinoffs before the public determines to be a little more cautious about buying a game. Its not like the old days when a game company releases 10 games and prays that one is a hit. Now days, making a dud is possible death to a smaller company.

    I think that games are recession proof. If anything, this will add some life to the PS2(like it needed it!)
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    people are going to want to have the chance to escape from their problems so no it think it'll pretty much stay the same

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    I don't see it affecting video games. The recssion would be huge to affect people seeing movies and playing video games.

    Some forms of entertainment will be hurt by recession. I am talking about the ones that involves traveling. Gas prices are not getting any cheaper. I wouldn't be shocked it gas cost over $5.00 a gallon sometime next year.

    A recession would affecting people doing to theme parks, traveling overseas as tourists, or sports that have a large traveling following like Nascar. A recession may affect attendance at other Sporting events. It is up to how expensive the tickets to a sporting event is.

    Video games cost less then going to a Nascar race and some other forms of entertainment.

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    Quote Originally Posted by Evan_G View Post
    Did the depression slow down the movie industry in the 30s?

    The answer is no, the opposite happened. When times are tough, people will always find the money for entertainment.

    did going to the movies require several hundred dollars for the end user before enjoying a film?

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    Funny, I was just discussion this point with my brother yesterday. We hit up "Micro Center" by his house, a massive computer/game outlet. The place was packed and sales were abundant. I was wondering HOW people could still be buying like crazy in this recession period. The need for entertainment to beat the depression makes sense, but I am also inclined to believe that the USA is a society that lives on credit. My wife is a debtor (yeah, one of those people that call you when you don't make payment, garnish wages, freeze accounts..etc) and she is at an all time collecting high. We may be buying to beat depression, but ironically are creating even more depression in the long run. We will all be in some MAJOR debt if this continues...that is for sure.

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    Quote Originally Posted by tmc View Post
    Do you think the looming worldwide downturn / recession will have any impact on the videogame race in 2008?
    Um, I have a question: What worldwide recession?

    The US economy is in the toilet for good reason, but China and a lot of the Pac-rim countries are booming, Europe seems to be doing okay (they don't overly depend on exports to the US anyway) and Canada is doing really well, despite the problems our southern neighbours are experiencing... Sure, gas is up, but a US recession does not necessarily suggest a dramatic domino effect this time around; I don't see it being to rough a ride for most of us, and I think that video game sales will continue to grow over the next five years or so... And the Americans will turn this around quick (they always do!) - within two or three years after the next election they'll be back on track...

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    Quote Originally Posted by Jimid2 View Post
    Um, I have a question: What worldwide recession?

    The US economy is in the toilet for good reason, but China and a lot of the Pac-rim countries are booming, Europe seems to be doing okay (they don't overly depend on exports to the US anyway) and Canada is doing really well, despite the problems our southern neighbours are experiencing... Sure, gas is up, but a US recession does not necessarily suggest a dramatic domino effect this time around; I don't see it being to rough a ride for most of us, and I think that video game sales will continue to grow over the next five years or so... And the Americans will turn this around quick (they always do!) - within two or three years after the next election they'll be back on track...

    china is booming due to US consumption, there will be no disconnect when the bill finally comes for all the debt spending

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    Some industries are more resistant to economic downturns. Some are even more profitable when money is tight. The movie and game industry are in the sub-set that are oft times more profitable. Inexpensive entertainment is prime in hard times. Sporting goods fares well also. Instead of going to Disney World or Hawaii many families will go to Oshmans grab a bunch of camping gear, fishing equipment and other outdoor goodies and take the week or two long summer vacation at a state/national park.


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