14 DAY TRIAL // We live in troubled times. The global recession is getting more and more aggravated and nobody is safe from the economic crisis, whether they live in the United States, Europe or any other continent. However, even though many industries are affected by it, one has proved to be safe: the gaming one. Thus, despite the fact that there were a couple of very troublesome moments, it eventually got back on its feet and continued marching on and making a lot of profit.
Kaz Hirai, head of Sony Computer Entertainment, recently spoke with the Wall Street Journal about the success of the gaming industry and how the recession might still affect it. He went on to say that although it seemed safe, his line of work wasn't completely "recession-proof" but, as opposed to other parts of the industry, it was safer.
"I wouldn’t go so far as to say we’re recession-proof, but we expect to be hit much less than an auto company, for example," he said. "We expect to do very well in the year-end shopping season."
The holiday season has always been one filled with huge profits and incomes for the gaming companies and although this one doesn't seem like it will match the revenues of the past years, it will definitely prove to be very successful for companies like Sony, Microsoft or Nintendo.
John Schappert from Microsoft also added that the recession would definitely make people more aware of the prices they had to pay for their products, and the reason behind the price cuts for the Xbox 360, was to make it more attractive for possible buyers. "When you look at people, who are certainly more price-conscious than ever, that price is something people are going to be looking at," he said.
It sure is an interesting strategy on Microsoft’s part, and it has high chances to pay off. They are walking a fine line but it sure looks like they might be the winners this upcoming holiday season.