EOC WK 2: Video Games Can't Dodge the Recession

The video game industry can’t dodge the recession, well who can? The recession has taken a toll on the U.S financial structure as a whole, but the video game industry is now feeling the pinch. Some of the reasons can be quoted in the recent article “Video Game Makers Cant’s Dodge The Recession,” in the Wall Street Journal written by Yukari Iwatani Kane and it states “Many console and PC game sales are also being cannibalized by digitally downloaded games and alternative entertainment sources like Apple Inc.'s iPhone, which offers thousands of games that can cost only 99 cents or even nothing at all.” Video game companies have invested millions of dollars in creating their game consoles; with this type of competition they are not seeing the return of their investment. EPA studios has downsized their studios, and most major players has seen sales decrease in the past few years, but does this really mean that it is game over for the video game industry? Not according to an article posted on www.redorbit.com, stating “The video game industry in the U.S. has been thriving despite economic woes. Industry data showed on Thursday that sales of video game hardware and software rose 57 percent in March from just a year ago.” This leads into another quote in the same article, “Microsoft’s Xbox 360 regained its lead over Sony's PlayStation 3 after two months of sluggish sales the company blamed on supply constraints. Consumers bought 262,000 Xbox 360s and 257,000 PlayStation 3s.” What I think what is happening here is that some people panicked over a slight slump in sales, overlooking the market sales projection in terms of the future. In an article written by a video game analyzer Pachter in www.1up.com, he quotes “Pachter offers this prediction: "I don't think that the market meltdown will impact game delivery for a couple of years, if ever." I guess this is a topic to be observed in the near future.