Recession Durability: Video Games

I follow the video game industry intently from the small independent developers who make casual games to the AAA titles that make billions of dollars. This industry has surpassed the movie industry in terms of sheer revenue recently and continues to grows as the Nintendo generation ages and continues to buy games for themselves and their children. Finally, video games are considered mainstream entertainment. Games are everywhere from your mobile phone to your home entertainment system.

In this recession, people are turning to industries, which might weather the current storm. Walmart (WMT) has done rather well since the middle-class is cutting back and saving more money. Video games have been brought up as something that is resilient to a recession. Video games are very cheap on a per hour cost of entertainment. Some can be played over and over again. In the Great Depression people turned to cinema to escape their woes. Video games are the modern day cinema.

Video Game Tidbits

The major gaming console players are the Nintendo (NTDOY.PK) Wii with ~50% market share and the rest of the market split between the Sony (SNE) Playstation 3 and the Microsoft (MSFT) Xbox 360.

After many years of consolidation, Activision Blizzard (ATVI) and Electronic Arts (ERTS) are the two major publishers left. Take-Two (TTWO) is a smaller player, who dodged a hostile takeover from Electronic Arts.

Square-Enix (SQNXF.PK) and Konami (KNM) are a prominent Japanese publishers.

Korea’s NCSoft (036570.KS) specializes in online mulitplayer games.

Gamestop (GME) retailer wants to expand.

Casual gaming sites like BigFishGames and China’s 9you are getting large investments.

Apple’s (AAPL) iPod Touch and iPhone are growing gaming platforms, which might represent the future of gaming.

But not all gaming companies are prospering. Midway (MWY) is close to bankruptcy.

There are a few ways gamers can save money on their games.

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