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Can Video Games Beat The Recession?

Does the cost of a new console and the related games intimidate you? But what is more scary, an initial investment of about $400 for a new Wii and a couple of games or a night at the movies for a family of four for about $100 (tickets and concessions, gas, parking, it all adds up!)?

Many in the video game business are hoping that the new system is seen as a long term version of cheap entertainment. Therefore they are hoping that with strong sales numbers in recent weeks, some think video games could stay strong and challenge this recession. Yes, it would be tempting for those in the video game business to take this newsas proof that their industry may be immune from the deep despair confronting the global economy. They two best examples of this fight are that October sales were through the roof and that the latest World of Warcraft expansion broke the all-time record for single-day PC game sales.

But people holding to that notion should not dump out that humble pie just yet. Caution will be there friend. It’s true that sales may be up in the short term, and look good for the holidays, but Wall Street doesn’t appear to be impressed. In the last couple of weeks, the publishers of some of the most popular games, and even a leading retailer, have seen their stock prices hammered.

Overall, it’s just time to be realistic. Yes, video games are wonderful and cheap distractions from the rough world outside. Yes, they probably will do better than many others during this holiday season. But in the end… No. Nobody can beat the recession. We all just hope to ride the torrents smoother than our competitors.



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