14 DAY TRIAL // 2008 is not a good game for the economy overall and although the videogaming industry has not been hit as hard as, say, the financial segment, there are a lot of publishers and developers facing difficult situations. Still, the industry is on track to posting a growth of 20% over 2007, which is more than the analysts from various consulting firms predicted for this year.
Colin Sebastian, who is an analyst with the Lazard Capital consulting firm, says that the sales registered over the Christmas period are very important to the industry. He states that “Our latest channel checks indicate that video game sales overall remain stable through mid-December, consistent with historical industry performance through economic downturns.”
Because customers have less money, there are some changes related to what people are buying. Sebastian observes that “Consumer demand continues to be uneven, concentrated among Nintendo products (Wii and DS), Xbox 360 hardware bundles, and a limited number of core software titles (e.g., Call of Duty and Gears of War 2) amid a congested slate of high-quality releases.”
The better than initially thought growth for 2008 might spell trouble for 2009. As the financial crisis rolls on and more publishers get hit by cash flow, we might see more closures and layoffs. Colin Sebastian also says that there will probably be a limited number of hits comparing with this year's Gears of War 2 and Grand Theft Auto IV.
Players could see prices dropping for second tier games and for budget titles, while digital distribution solutions will probably become even more popular, as they eliminate the cost of packaging. Still, prices for AAA titles will likely remain at 59 dollars for the Xbox 360 and the PlayStation 3 and at 49 dollars for the Nintendo Wii.