Quoting NPD figures showing that 2007's USA spend on video games of $18 billion is expected to increase to "at least $22 billion this year", Forbes points out that hardcore gamers are the heart of the industry on the consumer side.
The video games figures compare to a 2.4 percent decline (to $14.2 billion) the first three quarters of 2008 for video/DVD sales.
The article also quotes everybody's favourite video games financial analyst, Wedbush Morgan's Michael Pachter's take on why we're still buying games:
Yes, we're all a bit thick when it comes to economic realities apparently. This appears to be the opinion of the great man according to Forbes, which also states that Pachter estimates that 50% of games are bought by the hardcore.
Fortunately the piece does manage to point out that in this time of 'uncertainty' one thing is certain, hard core video game fans will continue to buy, rent and trade games, while more casual gamers might start looking elsewhere for their entertainment spend. Could the recession be what was needed to direct the industry back to its core fanbase? Tell us your experience in the Forum.
Source: Forbes
The video games figures compare to a 2.4 percent decline (to $14.2 billion) the first three quarters of 2008 for video/DVD sales.
The article also quotes everybody's favourite video games financial analyst, Wedbush Morgan's Michael Pachter's take on why we're still buying games:
"They may be wealthy, they may be poor, but they have no clue we are in a recession".
Yes, we're all a bit thick when it comes to economic realities apparently. This appears to be the opinion of the great man according to Forbes, which also states that Pachter estimates that 50% of games are bought by the hardcore.
Fortunately the piece does manage to point out that in this time of 'uncertainty' one thing is certain, hard core video game fans will continue to buy, rent and trade games, while more casual gamers might start looking elsewhere for their entertainment spend. Could the recession be what was needed to direct the industry back to its core fanbase? Tell us your experience in the Forum.
Source: Forbes
Comments
deleted 19 Dec 2008 14:55
1/8
its all specualtion at the moment, the xmas season is full of kiddies wantying there Wii or PS3 fix, lets see summer 09? then we will know if it s hit the gamers or the casuals persay.
YenRug 19 Dec 2008 15:14
2/8
Correct me, if I'm wrong, but aren't these so called analysts part of the reason why we're in a recession in the first place? If they hadn't been advising people that it was safe to make all these bad investments and loans, we'd probably be at least a little bit better off than we currently are.
Bit rich to then say we don't understand there's a recession on, especially when the advice is the best way to get out of one is to spend money, which we seem to be doing!
Bit rich to then say we don't understand there's a recession on, especially when the advice is the best way to get out of one is to spend money, which we seem to be doing!
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TimSpong 19 Dec 2008 16:09
3/8
YenRug wrote:
Bit rich to then say we don't understand there's a recession on, especially when the advice is the best way to get out of one is to spend money, which we seem to be doing!
I believe the correct response as a gamer is: "I had a money. But I losted it" - that looks like what Mr Pee would expect of us.
Cheers
Tim
config 19 Dec 2008 17:04
4/8
I wonder if Pachter thinks the same of movie goers? Cinema takings typically buck the trend and rise during a recession, which is a well understood phenomena - a low cost bit of escapism.
How is gaming any different, Mr Pachter?
How is gaming any different, Mr Pachter?
TimSpong 19 Dec 2008 17:08
5/8
config wrote:
I wonder if Pachter thinks the same of movie goers? Cinema takings typically buck the trend and rise during a recession...
I think that was back in the days when cinemas were in town and didn't entail having to drive out to an industrial park?
Cinemas will be f**ked by this recession as well. An analyst told me... last week... in the queue for the cinema.
|Tim|
OptimusP 20 Dec 2008 18:13
6/8
"Could the recession be what was needed to direct the industry back to its core fanbase?"
So Core fanbase, are you talking about the 2d-raised core fanbase or the Playstation raised one. Because we actually are going back to the first one and the second one will actually kill the industry in time.
Besides, this economic crisis is actually not as bad as some make it seem. We're just in a lot of problems now because the huge speculation funds formed in the last quarter century got a major kick up the ass and it was "advised" by "specialists" that you would be financially "hip" to be part of those funds. We've been building up a lot of economic layers since 1929 that economics seem to be forgetting.
But then again, Economy as a science exists to give astrology a good name
So Core fanbase, are you talking about the 2d-raised core fanbase or the Playstation raised one. Because we actually are going back to the first one and the second one will actually kill the industry in time.
Besides, this economic crisis is actually not as bad as some make it seem. We're just in a lot of problems now because the huge speculation funds formed in the last quarter century got a major kick up the ass and it was "advised" by "specialists" that you would be financially "hip" to be part of those funds. We've been building up a lot of economic layers since 1929 that economics seem to be forgetting.
But then again, Economy as a science exists to give astrology a good name
Bob 22 Dec 2008 09:27
7/8
Tim Smith wrote:
config wrote:
I wonder if Pachter thinks the same of movie goers? Cinema takings typically buck the trend and rise during a recession...
I think that was back in the days when cinemas were in town and didn't entail having to drive out to an industrial park?
Cinemas will be f**ked by this recession as well. An analyst told me... last week... in the queue for the cinema.
Apparently not... http://entertainment.timesonline.co.uk/tol/arts_and_entertainment/film/article4341278.ece
TimSpong 22 Dec 2008 09:42
8/8
Bob wrote:
Tim Smith wrote:
Cinemas will be f**ked by this recession as well. An analyst told me... last week... in the queue for the cinema.
Apparently not... http://entertainment.timesonline.co.uk/tol/arts_and_entertainment/film/article4341278.ece
According to that The Times report, "Phil Clapp, head of the Cinema Exhibitors’ Association, said, "The box office seems to be resistant to recession."
That makes me just a little resistant to entirely buying into the statistics... also the fact that there weren't any statistics makes me a little resistant to believing them.
Cheers
Tim
PS: An analyst I was with at the cinema last night explained to me that just because the head of a trade body explains that his trade is doing well, doesn't mean that it's not true. He then charged me £1,000 for that analysis.