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Casual crossover makes games industry 'recession-proof'
May 20th 2008 at 09:38 by Michael French

A new report on marketing site AdvertisingAge has outlined a number of things that ad execs could learn from the games industry - and added that the 'entertainment value, wide audience appeal, and escapism' elements of video games have helped the sector buck market trends and the threat of an economic downturn.
Citing NPD figures the site points out that the '$18bn games industry is on a tear, with sales up 31 per cent over 2007 through April' - a stark contrast with the current shaky economy.
"There is a theory that in difficult times, people nest more, so that at-home entertainment is more recession-proof than away-from-home activities," the piece quotes NPD analyst Anita Frazier as saying as the article goes on to claim that much of the buoyancy of the games industry comes from the sale of casual and family games.
'Family games' accounted for 17 per cent of all games sold in 2007, up from 9 per cent in 2006, according to US trade association the ESA.
AdAge also says that 'the addition of revenue streams' - which traditional casual games firms will be very familiar with - such as in-game advertising, downloadable sales and microtransations is contributing to the economic strength of the games market.
"Broaden your audience," the site recommends to marketers when it comes to pointing out lessons that can be learn from the games industry, adding: "In the video-game world, the move toward more family-oriented and casual systems and games has opened the door to new revenue streams."
jamba
May 20th 2008 | 16:30
I definitely think there's something to the fact that as the economy slows, and the threat of a recession looms, then people could turn to playing games as they represent better value for money. But what's not to say that casual games downloads won't suffer further down the line as people tighten their belts and cut back on incremental spends?
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