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Thursday, January 8th, 2009
articles.php?which=VideoGameBusinessPlanIsntAnOxymoronItsBrilliant
"Video Game Business Plan" Isn't An Oxymoron. It's Brilliant.

There are more than a few industries that you don't want to hold a business plan for right now. Financial services. Real estate (apparently things are so bad in this sector you have to get clients drunk to make a sale). And don't even get started on the automotive industry, where everyone from the big guys like GM to start-ups like Tesla are struggling to keep their heads above water. Yet despite the generally dour mood across most segments, at least one sector is doing well: Video games.

While retail sales took a dive in October and analysts say that Americans are reducing spending in all areas, video game sales jumped a whopping 18% last month, reports VentureBeat. That wasn't a one-off, either. According to the NPD Group, the gaming industry is on track to make a record $22 billion sales this year. And it doesn't look like this trend is going to let up anytime soon. To wit: there are currently two-hour long lines for the new World of War Craft game, Lich King. And some of those gamers have camped out for more than 24 hours in freezing weather, reports Silicon Alley Insider. That's all to plunk down anywhere from $40-$70 bucks on the new game.

It's not just the relatively cheap games that saw action last month either. Video game consoles also had excellent sales, with Nintendo selling nearly a million Wii machines, and almost half a million DS handheld players in just October. While Nintendo had by far the most sales of consoles, they weren't the only ones to cash in. According to NPD, there was a 26% jump in sales of hardware, software, and accessories across the board.

So, why is the gaming industry doing so well? While we're loathe to speculate why people might be spending their hard-earned (and dwindling!) cash on Wii Tennis, VentureBeat does it for us:

"As many observers have been saying all year long, perhaps because entertainment provides an escape from the real world."

It makes sense. Isn't that why alcohol is recession proof too?

lichking2

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