Friday, February 13, 2009

Will you keep paying top dollar for games?


The game industry is counting on core gamers — the mostly young men who regularly, loyally buy new titles no matter how the economy is doing — to keep the industry afloat during the recession. But should companies expect these loyal gamers to keep shelling out $60 for the latest and greatest?


For 60 bucks, you get 400 TV channels for a whole month. You can buy three cases of Budweiser. Or, you can buy one video game.

Yes, yes. I know you’ll get 20 hours of quality gaming entertainment for your “Killzone 2” purchase versus 200 hours of “Iron Chef.” But times are tough, and consumers are spooked. 60 bucks is 60 bucks. Why should game publishers expect to get top dollar when General Motors can’t move SUVs?

Bottom line: Because people are still buying games. The most recent report from the NPD Group shows that despite the recession and the cratering retail environment, game hardware, software and accessories were up 19 percent in 2008. Even if their wallets are light, says analyst Todd Greenwald, this data shows that gamers will pay retail for their favorite titles.

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