Analyst: Games Industry 'Highly Recession-Resistant'

The stock markets may be moving like a rollercoaster each day, but the games industry will be OK, according to the quotable industry analyst Michael Pachter.

From the offices of firm Wedbush Morgan, Pachter wrote "Notwithstanding this month's anticipated decline, we believe that the videogame software sector remains highly recession-resistant," in an investors' note. "This month's anticipated decline" is the almost certain year-over-year drop from September 2007, when Halo 3 had its blockbuster release.

"As a category, games are one of the lowest cost forms of entertainment, particularly to those households that have already invested in a home console," wrote the analyst.

Pachter also predicted that September sales will hit $620 million in software--a 6% decline--but sees large increases in hardware sales, citing increased Wii production and the Xbox 360 price cut that Microsoft claimed gave a 600% bump in sales.

From The Chatty
  • reply
    October 13, 2008 12:33 PM

    In other news, alcohol sales, tobacco sales, reality TV viewing, pornography, and other low-cost forms of escapism also found to be highly recession-resistant.

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      October 13, 2008 12:41 PM

      ....however, the hookers & blow industry has taken a serious nose-dive.

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        October 13, 2008 12:54 PM

        not where i'm from

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          October 13, 2008 12:57 PM

          Are you from Hookers & Blow Industry Town?

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          October 13, 2008 1:02 PM

          Me neither, drug trade increased due to the fear of tax dollars being wasted on wall street's well off idiots that made bad business decisions concerning credit. Why give the gov. money when you can sell blow and pimp hookers tax-free?

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          October 13, 2008 1:22 PM

          You... um... monitor that industry closely? Or are you just speaking of personal consumption (or personal service provider).

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            October 14, 2008 10:54 AM

            I have my hand in many different cultures... =)

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      October 13, 2008 2:47 PM

      ............and in yet more other news, the price of trailer park pads escalate as over mortgaged borrowers gather than overleveraged family and friends and lever down to double-wide overlooking the river. With the deleveraging complete, WOW, microwave burritos and fun are had by all.

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