Gamers Reluctant to Spend
July 30, 2009 by Mark Ellis
Filed under Business
While the videogame industry had once been thought of as recession-proof, reports from Microsoft, Sony, and Nintendo show that even the videogame industry has managed to spring a leak. The makers of every major videogame console have shown a drop in profit, as well as a reluctance to cut prices that, according to analysts, could end up harming these companies in the long run.
Videogame makers have suffered throughout the recession as more and more gamers turn to other gaming alternatives that do not involve the hefty $60 price tag on new console videogames. However, Sony and Nintendo, whose PlayStation 3 and Wii consoles have cost $400 and $250, respectively, since launch, have reported significant drops in revenue, while even Microsoft’s price-cutting Xbox 360 division have experienced profit losses as well.
Analysts warn Nintendo and Sony that they have no chance of meeting their profit forecasts if they do not cut prices of their consoles. Videogame makers may have to follow, considering the hesitance on the part of gamers to spend so much money on games when the chance of disappointment exists.
Image: Flickr
I’m one of those who’s been affected by economic crisis and I had to drop some of game subscriptions just to save some money, it’s very hard on my part ‘coz video game has been part of my daily routine. I’m just glad that there’s a free game like Aion that’s currently on beta but as soon as it’s been officially launch, we’ll that’s the end and I have to find another free game. If they want to earn some money from us, the best solution is to cut the prices of their product.