14 DAY TRIAL // Recession is hitting hard. Midway was just sold for around 100,000 dollars. Eidos is looking for someone to bail it out. Brash Entertainment went under. Electronic Arts has laid off 1,000 people, about 10% of the staff it employs and announced closing down nine studios, including Need for Speed Undercover developer Black Box. Other companies are talking about streamlining organizations and creating games with better potential to bring in revenue. Still, the gaming industry will endure, analysts are saying, because hardcore gamers can be counted upon to buy those games that appeal to their preferences.
Billy Pidgeon, who is an analyst for IDC, told the Associated Press that “As long as gamers have a job, they will continue to buy games,” pointing out that gaming draws a more loyal crowd than movies or television. Michael Pachter, from Wedbysh Morgan, added that “They may be wealthy, they may be poor, but they have no clue we are in a recession,” highlighting the fact that videogames have become essential products for some people.
Cited evidence regarding hardcore gaming and revenue for publishers could be seen by looking at the NPD Group charts. Gears of War 2 and Call of Duty: World at War were the two top selling games of November 2008, while Take Two has just said that 60% of its revenue is derived from the Grand Theft Auto series. World of Warcraft, a very hardcore MMO, is bringing in about half of the operating profit for Activision Blizzard.
The significant exception is Nintendo. The Japanese company, which produces the Wii and the DS, while also creating games for the two platforms, is not targeting hardcore gamers, yet its top products are always in big demand. Games like Wii Fit, Mario Kart Wii and Wii Play are in the charts month after month.