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Analyst estimates half of all games bought by "core" gamers
An Associated Press article gives props to those of us who buys lots of game, and read and write about them, and consume them as a form of entertainment on par with television and movies.
The article hints that core gamers (pictured) should be credited with getting the videogaming industry through tough times....some analysts believe it will turn out to be core gamers -- who might be more reliable consumers of their favorite form of entertainment than movie buffs or sports fans, for example -- who keep the industry afloat as the rest of us cut back.
Michael Pachter, an analyst with Wedbush Morgan, estimates that core gamers buy roughly half of all video games.
"They may be wealthy, they may be poor, but they have no clue we are in a recession," Pachter said.The article even suggests the retailers know it."If the core gamers and the avid gamers are with us through these very unpredictable times, that's a very, very good sign for us," said R. Richard Fontaine, GameStop's chairman, during [a conference call with analysists].
Meanwhile, the writer points out that the NPD Group further predicts that videogaming may turn out to be even more recession proof than other forms of entertainment.In 2007, people bought $18 billion worth of games, consoles and accessories. Even with discretionary budgets shrinking, the NPD Group expects this number to grow to at least $22 billion this year. In contrast, U.S. consumer spending on home video is going down. Spending declined 2.4 percent for the first three quarters of the year, to $14.2 billion, according to industry tracker Video Business.
By Citizen Parker at 10:34 AM ON 01/06/09
Great article. That line "They may be wealthy, they may be poor, but they have no clue we are in a recession" is a new classic.
Is the comparison to home video all that valid, however? They talk about it being down 2.4 percent, but they don't cite records of previous performance in 2007, and Q1/Q2 2008 were a bit before most home consumers really knew about any serious economic problems.
I would be willing to chalk that up much more to increased competition from Netflix as well as (warning - unfounded hunches ahead) consumer burnout on DVDs from the reduced theatre-to-DVD turnaround as well as people finally figuring out that they already have a bazillion DVDs already.
Minor quibbles with a minor point though.
By Rob Zacny at 6:11 PM ON 01/06/09
There is an entire generation of games journalists whose last words will be, "Michale Pachter, a Wedbush Morgan analyst, said..." I'm hard pressed to think of any financial analyst who comes close to rivaling his ubiquity.
For my part, I'm probably spending the same kind of money on gaming, just not on full-fare gaming. This is a good time to start picking up back-catalogue titles, and I'm able to pass it off as thrift instead of compulsion!
By bahimiron at 8:24 AM ON 01/07/09
Hey, where'd you get that picture of me?
bahimiron:
Hey, where'd you get that picture of me?...More »