Video Games Not Recession Proof
When the big economic unraveling began last fall, I was impressed to see video game figures not only holding steady but actually increasing in sales. However the latest numbers are showing that even this robust industry is losing points in the battle. Market research firm NPD Group Inc. says sales fell drastically in August, putting overall game sales back 16% from last year at this time. It was the sixth straight month of declines, and according to NPD analyst Anita Frazier, who is quoted in the Los Angeles Times, industry sales must grow 14% during the rest of this year in order for things to remain flat with 2008 sales.
Obviously this trend likely accounts for the domino declines of console prices over the past while, with Sony’s PS3, followed by Microsoft’s Xbox and now Nintendo’s Wii all seeing price decreases. But will these cuts actually drive more consoles out of stores and into homes? Tell us what your plans are—will the new price drops encourage you to purchase a new game system, or would you rather see discounts on the games themselves?