Are Casual Games Recession-Proof? Companies Report Record Revenues, Surprising Trends

http://www.xconomy.com/national/2008/11/24/casual-games-may-be-recession-proof-companies-report-record-revenues-and-some-surprising-trends/

by bbuderi • 18 years ago

12 6 18 years ago

xconomy.com

JoelSutherland3• 18 years ago

The 'Casual Game Industry' is much to young to jump to the conclusion that it is counter-cyclical. Rather, I think we are seeing a particular industry growing at a time the larger economy happens to be shrinking. This shouldn't be impossible to imagine.

Several things have contributed to the growth of the industry in the last few years that far outweigh the impacts of the macro-economy:

* Ubiquity of fast computers, capable browsers (IE6 even)and broadband

* Increased comfort with the web from older generations

* Venues like Xbox 360 arcade

* etc...

DLWormwood• 18 years ago

> The 'Casual Game Industry' is much to young

The only thing young about that is the name. What we call "casual games" were the mainstream 25 years ago, until the hardcore gamers (myself included) left the mainstream behind for RPGs, FPSs, RTSs and other acronym worthy gaming genres and types as the technology gradually enabled them. A new game like "Pac Man" or "Asteriods" would be considered "casual" nowadays.

JoelSutherland3• 18 years ago

Pac Man and Asteroids haven't changed, but the context they are played in has. The context is young.

25 years ago they were played at arcades or bars in coin-operated machines. Today, those games are played in a web browser or on a handheld device.

sgoraya2• 18 years ago

I would disagree with the statement ..."to young to jump to the conclusion that it is counter-cyclical."

As a quick backgrounder, my former boss who owned and operated a videogame publisher/developer mentioned to me on several occasions that the gaming industry is 'recession proof'. He was an astute businessman who started and sold a couple of companies related to materials engineering and then jumped into the gaming industry.

In addition to his remarks and feelings, the current and historical numbers (going back to about 1998, when I entered the industry) show that in tough economic times, the gaming industry in rather insulated. People always need some form of entertainment and that particular medium is shifting more and more towards videogames, be it casual or 'standard' platform or PC games. This is evident from the fact that for several years now, the gaming market has been generating far more revenue than the movie industry.

(The NPD group has some good reports which back up the numbers)

JoelSutherland3• 18 years ago

1998 is not that long ago. Even 1988 isn't that long ago. Games are typically first played by youth. The youth of 1988 and 1998 are getting older and have more disposable income. The industry is growing as a whole so it is really hard to tell whether the gaming industry is insulated from recessions or if it is just continuing to grow. Your remark about movie vs. video game revenue further illustrates this point.

Also, video games != casual games. The point of this article was that casual games might be counter-cyclical due two their revenue model which differs from traditional video games.

Are Casual Games Recession-Proof? Companies Report Record Revenues, Surprising Trends

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