Video game industry not recession-proof

As the tech industry continues to struggle, it seems the video game industry has finally hit a rough spot it simply hasn’t been able to overcome.

NPD Group figures indicate game sales in March dropped a whopping 17 percent over a four year period compared to the same time last year.  Prior to March, the game industry had numerous months of positive growth, but the sluggish economy finally claimed its latest victim, and it could continue in the future, according to analysts.

However, it should not be forgotten that last March had the release of "Super Smash Bros Brawl," which turned into a top game for the Nintendo Wii game console.

Game studios are expecting the weak economy to further hurt game growth rates in the next few quarters, as consumers continue to try and save money.

Video game industry not recession-proof

Image courtesy of Reuters

I’m not sure what to make of this news, as there are analysts both predicting a continued gaming decline, while others say the industry should rebound quickly.  I expect the industry to recover by June or July, but wouldn’t be surprised if the industry struggled throughout the summer — it will depend on the cost of video game consoles, and whether or not any blockbuster game titles will be released.

"Harry Potter and the Half-Blood Prince," "Wii Sports Resort with Wii Motion," and several other highly-anticipated games could help sales in the coming months.