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Casual market more exposed to recession, DS peaked in JA
Casual market more exposed to recession, DS peaked in JA
Kotaku - April 4, 2008
Submitted by Animate (241) at 2:23PM PST on April 4, 2008
"Recessionary environment is negative, but we believe the core gaming market to be more resilient than its casual counterpart." Core gamers will keep buying, casual gamers won't."
"Casual gaming growth has been driven the last 3 years by DS. Demand has peaked in JA, & we believe is currently peaking overseas. Compounded by less robust retail environment, we expect decline in handhelds. Companies expected to do well Capcom & Square Enix, both have strong core franchise game sequels coming."
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2Animate posted on Industry News at 3:46PM PST on April 4, 2008. RE: Casual market more exposed to recession, DS peaked in JA@Laoldar,
They did not say DS peaked due to economic conditions. Right in my summary I included the quote: "Demand has peaked in JA, & we believe is currently peaking overseas."
His remark about DS hardware sales were just one of his many points, not related to recessionary conditions.
He is saying demand has peaked in JA and is currently peaking overseas. While separately saying a recessionary environment affects the casual consumer from making purchases more so than the core gamer. I completely agree. The core gamer not only includes more people who are less affected by a recession (many males aged teens-34 yrs of age), but also people who are likely to put game purchases before other supplemental purchases.
The casual gamer includes a larger demographic, younger and older, and families. Those more impacted by a recession and those who will put games as a more secondary purchase to other supplemental items as well as financial responsibilites.[ Oracle ] [ Level 26 ] [ Rank: 241 ]bids
2ixaarii posted on Industry News at 3:04PM PST on April 4, 2008. RE: Casual market more exposed to recession, DS peaked in JAbids
2Laoldar posted on Industry News at 2:39PM PST on April 4, 2008. RE: Casual market more exposed to recession, DS peaked in JAThe logic here is wonky.
For one, the DS didn't "peak" in Japan due to economic conditions...it more likely has nearly saturated the market with over 22 million sold in a nation of less than 130 million.
Nevermind that there's no definite signs of a recession (yet, one will come soon though and the Fed keeps delaying it) and since Japan isn't in a recession, I don't see why DS sales there (which have been MUCH higher than the States to begin with) have anything to do with predicting US sales in a hypothetical financial situation.
Also, since casual games cost less, the case could be made that they are less likely to be hit when a recession does come. It's easier for someone to justify buying $20 for a budget DS game than it is for someone else to pay $60 for another FPS game.[ Oracle ] [ Level 21 ] [ Rank: 182 ]bids
23Animate posted on Industry News at 2:23PM PST on April 4, 2008. Article: Casual market more exposed to recession, DS peaked in JA"Recessionary environment is negative, but we believe the core gaming market to be more resilient than its casual counterpart." Core gamers will keep buying, casual gamers won't." "Casual gaming growth has been driven the last 3 years by DS. Demand has peaked in JA, & we believe is currently peaking overseas. Compounded by less robust retail environment, we expect decline in handhelds. Companies expected to do well Capcom & Square Enix, both have strong core franchise game sequels coming."[ Oracle ] [ Level 26 ] [ Rank: 241 ]
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I am pretty sure that even the casual market wouldn't be hit that hard in a recession in the U.S.
Where I currently live in the U.S., we have been in what is essentially a one state recession for the past handful of years and the Wii and DS are both still sold out almost everywhere with most stores only having a few DS units usually in stock (other than those systems that immediately get bought).