Video games are generally considered economically inelastic. Video games are cheap alternative forms of entertainment (much cheaper than taking the family to Disneyland). However, it seems like this is less and less the case. ATVI was the only stock I know of that fared well through this holiday season (and this is largely from the Blizzard merger). ERTS is just coming off a 52-week low.
The market may be thinking video games are a bit elastic with the economy and demand will decrease as the US economy continues to weaken.
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Video games are generally considered economically inelastic. Video games are cheap alternative forms of entertainment (much cheaper than taking the family to Disneyland). However, it seems like this is less and less the case. ATVI was the only stock I know of that fared well through this holiday season (and this is largely from the Blizzard merger). ERTS is just coming off a 52-week low.
The market may be thinking video games are a bit elastic with the economy and demand will decrease as the US economy continues to weaken.