PS3 News: Analysts Predict Lending Crisis Won't Hurt Gaming Industry - PS3 News

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Analysts Predict Lending Crisis Won't Hurt Gaming Industry

You may focus on video game news, but if you were online at all in the past couple of days, you couldn't miss the news concerning the stock exchange. After the House failed to pass the Bush administration's $700 billion rescue plan, stocks tumbled two days ago, resulting in the worst points drop ever. However, yesterday, the market saw a big resurgence as the Dow closed with the third-highest point gain in history. So...in other words, things are pretty volatile right now.

But according to analysts, any stock shortcomings probably won't affect the ever-blossoming game market. Wedbush Morgan's Michael Pachter spoke to Gamasutra on the subject and predicted that none of the publishing companies will be affected by the lending crisis, and Lazard Capital Markets' Colin Sebastian mentioned the well-known "cocooning" effect." If you're not familiar, it's one of the more logical and straightforward theories in business: when the economy starts to go south, people tend to stay home more often. But of course, they still wish to be entertained, which means games - often the leading profit-maker month-to-month of all major entertainment industries in North America according to recent NPD results - are the perfect option. Sebastian called it a "cost-efficient form of escapism," which is exactly what it is. A movie will cost anywhere between $15 and $30 but it will only offer 2 hours of entertainment time, while a $60 game can provide, at the bare minimum, 6-10 hours. In many cases, that number is between 20 and 40, and well over 100 hours isn't unusual.

Traditionally, this theory holds true. Gas prices went up; people stayed home...and game sales rose. GameStop's financial projections for the '08/'09 fiscal year show stunning year-over-year growth, and those projections may even be conservative according to some analysts. So you needn't worry; the DC boys can bicker and debate all they want. In the end, home entertainment will benefit.

9/30/2008 Ben Dutka

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Comments (23 posts)

WaR_HaWk
Tuesday, September 30, 2008 @ 10:19:30 PM
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i thought gas pricers got lower

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Orvisman
Wednesday, October 01, 2008 @ 9:08:08 AM

They're referring to gas prices this past spring/summer. Prices have only just started to drop.

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Scarecrow
Tuesday, September 30, 2008 @ 10:41:26 PM
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YES!
Gaming's beautiful, period.

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AceTatsujin
Tuesday, September 30, 2008 @ 11:16:59 PM
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Internet > The World

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Jizmack
Tuesday, September 30, 2008 @ 11:18:39 PM
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For me

Women>Internet=World

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Jed
Tuesday, September 30, 2008 @ 11:52:58 PM
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that's good to hear. Evereything is so doom and gloom, it's nice to hear some good news for a change. And yes, women>all else

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Scarecrow
Wednesday, October 01, 2008 @ 12:35:41 AM
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Women stab you in the back

games>women>everything else

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www
Wednesday, October 01, 2008 @ 4:56:39 AM

True,hell hath no fury like a woman's cone,
basically Jizmack hasn't had problems with women so he feels there greater than games.
For me is also:games>women>music>n everythan nice.

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Aftab
Wednesday, October 01, 2008 @ 5:35:37 PM

No man. People stab each other in the back. You just got know how to stab first! Nah, just kidding. What you gotta be able to do is use your ninja powers, and see that stab coming from a mile a way, and dodge it. She'll be awe-struck by your powers, and come beg for more...But you must walk away while you still have your chi. Some successful ninja's play this game their whole life with the same woman. Other's, of the "player-rank", continue this game with many, and without beign detected! But it is debatable, which of these two ranks are more skilled.

Last edited by Aftab on 10/1/2008 5:45:38 PM

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Zapix
Wednesday, October 01, 2008 @ 5:16:33 AM
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I would add women at the top of the list, but they cost more than a Neo-Geo did brand new... Plus they cheat, lie, sleep with your best friends, and if you're married, they very well might try to take all your stuff if ya don't get a pre-nup! With everything costing so much, having a gf is worse than having a mortgage you can't pay.

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Orvisman
Wednesday, October 01, 2008 @ 9:09:33 AM

Wow! Some chick really screwed you over didn't she.

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Aftab
Wednesday, October 01, 2008 @ 5:20:39 PM

Man, he's just blowing of some steam, and adding some humor to it for good measure. No need to kick him, while he's at it, Orvis.

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Zapix
Thursday, October 02, 2008 @ 8:37:34 AM

lmao, yeah, I've been f'ed over pretty bad! My last gf, I supported her and her 2 kids, and I didn't get a thing for it, except to eventually be cheated on! As Aftab said though, I mixed it with humor! Life without humor just wouldn't be fun! :) With a failing economy, cost of everything being so stupid, it leaves open room for just that! I mean... What would you prefer to spend $60 on? Dinner with your gf, or Resistance 2 or some upcoming game? :P

btw, Activision and EA took hits on Monday over the whole mess, but bounced back for the most part.

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m2tbo
Wednesday, October 01, 2008 @ 8:28:02 AM
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When I finally get enough money to buy some stock, it's going into video games.

On another note, I would definitely rather spend a day with video games than with my girlfriend.

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Troy Powers
Wednesday, October 01, 2008 @ 10:30:34 AM

You need a new girlfriend.

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snglbck26
Wednesday, October 01, 2008 @ 10:20:45 AM
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I know the economy has caused me to be much tighter with my money especially here in the Northeast where we are concerned with heating fuel costs this winter. As a result I may only purchase one or possibly two games and rely on on-line play to make my games last longer. The escapism they provide is badly needed.

Last edited by snglbck26 on 10/1/2008 10:21:19 AM

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MetalHead09
Wednesday, October 01, 2008 @ 4:36:42 PM
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LMAO you guys ROCK!!!. im sorry i just find all the guys that said game>woman>everything else, extremey funny. im not calling anybody losers so dont miss interpret lol. at this point in my life having a gf or wife wouldnt be the best idea for me so for me it is also games #1 lol for the time being.

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WorldEndsWithMe
Wednesday, October 01, 2008 @ 5:00:18 PM
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I lost about $1000 in the crash and that coulda been a lot of games! But you can bet you're sweet monkey ass I'll be "cocooning" at home with my games this winter. How you guys got on the topic of women I don't know, but the dexterity my hands get playing games does come in handy there.

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Aftab
Wednesday, October 01, 2008 @ 5:25:17 PM

Haha, quarter circle, quarter cricle, "FINISH HER"...

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shaydey77
Wednesday, October 01, 2008 @ 5:02:35 PM
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how did the woman thing start anyways?? women playing games..yum!!ha

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Aftab
Wednesday, October 01, 2008 @ 5:26:37 PM

Actually, I don't think I'd want a girl who plays vid games, or smoke, even though I do both.

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Zapix
Thursday, October 02, 2008 @ 8:40:08 AM

when you're in the middle of a boss fight, do you really want your gf b****ing she wants her turn to play? Your personal quest to beat the game will be postponed because you have to share your game time!

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arctic
Wednesday, October 01, 2008 @ 6:32:03 PM
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wtf

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