SCEE head, David Reeves, is taking against received wisdom that states that entertainment can stand up to any economic downturn. Speaking in a recent interview, he says that "The industry is not recession-proof, but it has done extremely well."

Fortunately, there is also an upside to the lack of recession proofness, "It's a function of the economic situation that you are going to find people who are resilient, who do not play with their pricing, who are very efficient", states Reeves in relation to the recent spate of job losses ('redundanciies', 'downsizing', 'realignment of personnel inventory' or whatever you want to call it) in the industry.

So, the video game industry is not recession proof, but it is "...inherently very healthy" says Reeves. We're a little confused. So, how does David suggest the industry survives, "It's not a question of survival of the fittest, it's the survival of people who are professional, and don't just go around cutting their prices and destroying the market."

Price cutting is destroying the market. We see. So, there is no way the PS3 will get a price cut? "I'm not saying we don't need to do it - we are expensive. It is possible that as the cost [of manufacturing] comes down, we will be able to do it."

See the full interview here.