While the economy at large is in dubious condition, the gaming industry (and super-retailer GameStop) is actually doing ok. Better than ok, in fact.
From CNN
The company's financials tell some of the story: for all of last year, GameStop's sales increased 33 percent, same store sales increased nearly 25 percent, and profit for the company increased 82 percent compared to the previous year. "By any barometer," one company executive said in a conference call with analysts, "[it's been] another outstanding year for GameStop."
What's the deal? How is it that when consumer spending is down and the nation's economy is widely considered to be "in the toilet" that GameStop is moving forward? Something touched on in the article (which is something that I think most people noticed at the time) is that it's a similar situation as right after 9/11. People have so many other concerns that they just want to stay home where it's safe and comfy. While a video game may seem steep (most new games for the XBox 360 debut at $69.99) that's nothing compared to, say, a vacation. On a vacation there's transportation, lodging, food, entertainment and souvenirs to pay for. 70 bucks for a single game that you can play over and over and over starts sounding pretty good, especially considering that you can sell it back when you're done.
Something else that helps is the mainstream acceptance of video games these days. It used to be that beyond the age of about 15 or so that you were considered too old for video games. Now it's profoundly acceptable for an adult to spend an evening playing Halo. With the social acceptability of video gaming on the rise it allows the people with the money to spend it more freely on video games. While a kid may need to save his allowance for weeks to get a game or wait until their birthday, a 20-something can walk into a GameStop and walk out with 3 games, a strategy guide and an extra controller.
Certain industries defy nationwide trends in times of economic peril. Oil companies are another, but for totally different reasons. So while I'm glad to see GameStop doing well (more profits = less likelihood of layoffs, which are awful) I their performance is an indicator of overall economic recovery. I wish it were, but it isn't.
Also, if anyone from GameStop is reading, no I don't want a subscription to Game Informer and I'm not really interested in pre-ordering Final Fantasy 37. I'm good.
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