We’ve featured Rob Fahey’s work over at Gamesindustry.biz more than a couple times, largely because he tends to provide timely pieces that reflect on the games industry and the outside forces working upon it. His article “Recessive Traits” today is more poignant and timely than ever, as it examines a very real and current problem and its potential effect on the industry: the economic crisis.

In the news the last week in America we’ve heard mentions of “Great Depression” and “worst economic crisis since World War II”, and with this in mind Fahey looks at the long held belief of the “recession proof” games industry and why that perception may be shattered. First, he outlines the two factors that have likely protected the industry in the past.

Two factors influence this. Firstly, this sector has a very healthy basic growth figure, which is created by the rapidly growing demographic of videogame consumers. The industry’s ability to broaden its appeal has always, thus far, outpaced any contraction in consumer spending.

Secondly, interactive entertainment - although a relatively expensive pastime in terms of initial outlay - can actually be a very cheap form of entertainment in cost-per-hour terms. As belts are tightened, consumers tend to cut down on expensive, out-of-home types of entertainment first. With consumers staying in more often, videogames - which can offer weeks of entertainment for a USD 50 outlay - are an appealing option.

All this said, Fahey believes the times are a-changin’ and cites that both the huge size of the current games industry and the recent focus on the casual gamer market are new developments that may threaten that hallowed “recession proof” status that the industry has so enjoyed for so long. In fact, Fahey posits that an industry recession has always been inevitable, the only question was “when?”. Apparently, sooner rather than later, if his words are to be believed.

To get the full rundown on the main points against a perpetually recession proof games industry, as well as what it may have in common with the alcohol industry, click here.

Source: Gamesindustry.biz