Video Game Industry Still Flourishing

rated by 0 users
This post has 4 Replies | 1 Follower

Top 10 Contributor
Posts 25,805
Points 1,164,530
Joined: Sep 2007
ForumsAdministrator
News Posted: Tue, Dec 30 2008 11:19 AM

Despite the current economic indicators that show the United States deeply mired in a recession, video game companies are showing gains in sales.

It has been previously discussed in industry and economic circles that the video gaming industry much like the movie industry may be recession proof as many look to these forms of entertainment as an escape from the day to day factors that accompany an economic downturn. Maybe we should introduce the concept of "Fragging as Therapy".

In a recent article on CNN Money the video game industry was listed as one of "7 winning industries". Not only are the video game companies holding their own but according to retail research group NPD group, video game sales increased 18% in October. This is especially remarkable as one of the key economic indicators, "consumer spending" dropped 1% in the same period.

While other industries and company's were reporting lower sales on "Black Friday" the Xbox gaming system reported a 25% gain over last year's sales on the same day. "Black Friday" is often an indicator of what to expect during that year's holiday sales.

Nintendo has also seen higher sales, and GameStop, a leading retail chain, just posted a strong quarter. The stocks of most video game companies have been beaten down this year, but a strong holiday season may recharge the industry's returns.

As increased sales usually dictate demand for new employees, the gaming industry may very well be one of the few sectors to weather this recession without layoffs or cutbacks.
     
       The other industries features in the article were:

  • Cosmetics
  • Waste Management
  • Comfort Foods
  • Discount Retailers
  • For-Profit education
  • Fast Food

If the trend continues we can expect new game releases to keep coming out as scheduled to keep our "distraction collection" stocked.

  • | Post Points: 20
Top 10 Contributor
Posts 5,053
Points 60,700
Joined: May 2008
Location: U.S.
Moderator
3vi1 replied on Wed, Dec 31 2008 9:32 AM

In other news, EA has announced losses of 310 million dollars and is laying off one thousand employess come March 31, 2009.

No, that's not a joke.

Even considering how (reputedly) horrible EA is a place to work, they are one of the biggest game publishers. So, I think the study may be a little flawed to call the industry "flourishing".

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

++++++++++++[>++++>+++++++++>+++>+<<<<-]>+++.>++++++++++.-------------.+++.>---.>--.

Top 10 Contributor
Posts 6,181
Points 90,135
Joined: Aug 2003
Location: United States, Virginia
Moderator

No 3vi1 the industry is flourishing, the layoffs are because of the pirates.

  • | Post Points: 20
Top 10 Contributor
Posts 5,053
Points 60,700
Joined: May 2008
Location: U.S.
Moderator
3vi1 replied on Wed, Dec 31 2008 10:22 AM

Ooooooohhhh..

That makes me angry, because now I realize EA was lying to us! http://news.cnet.com/8301-13846_3-10054438-62.html

I think you're right, and that the 500,000 pirated copies were going to sell for $621.00 each. In which case, EA would have made a profit.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?

++++++++++++[>++++>+++++++++>+++>+<<<<-]>+++.>++++++++++.-------------.+++.>---.>--.

Top 150 Contributor
Posts 835
Points 11,255
Joined: Nov 2008
Location: New Zealand

I agree with "News". We should introduce the concept of "Fragging as Therapy". Wink

*New KILLER Rig!!* - Windows 7 Ultimate 64 Bit Build 7100 (RC)

Intel Core i7 920 OCed to 3.2GHz | CoolerMaster V8 | Patriot Viper 3x2GB DDR3-1333MHz | MSI Eclipse X58 | LG W2261V 22" 16:9 | Western Digital Caviar Black 640GB | MSI ATI 4870 1GB | Enermax Revolution 85+ 1050W PSU | CoolerMaster HAF 932 | ASUS DRW-22B1LT Lightscribe | Creative SB X-Fi Xtreme | Logitech X-540 |  Razer Carcharias | Razer Lachesis | Razer Destructor/ Razer Goliathus Speed/ Fnatic SteelSeries Qck+ XL | OCZ Alchemy Elixir |

*My OLD Killer PC* - Windows Xp Home Edition 32 Bit

Intel Pentium 4 2.6Ghz -1GB (2x512MB) Hynix DDR-400Mhz SDRAM - Micro ATX ECS L4S5MG/651+ - Acer AL506 15" Monitor - Seagate 2.5" ST380012A IDE 5200RPM 80GB - ASUS nVidia TNT2 M64 32MB AGP x4 - Hyena 300W PSU - *CoolerMaster Storm Scout*

  • | Post Points: 5
Page 1 of 1 (5 items) | RSS