The vast majority of stocks in general have been down over the last several months. Stocks as an asset class simply are not recession proof in that the holders of stocks need to sell to pay for other things in their lives. This may be because they got laid off, they didn't get the bonus they were expecting, etc. So stocks have to be sold even if the underlying company has not been deeply affected.
However, video games are still a consumer cyclical product. If money is very tight in the family, the priority purchases are going to be food, power, and heat while things like video games take the back seat. The traditional consolation for video games in a recession is that they, like movies, are cheap forms of entertainment. It's a lot cheaper to buy the kids some video games or take them to the movies rather than take them on the annual trip to Disneyland or the like. People trade down in a recession. Some people trade down TO video games, some people trade down FROM video games.
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The vast majority of stocks in general have been down over the last several months. Stocks as an asset class simply are not recession proof in that the holders of stocks need to sell to pay for other things in their lives. This may be because they got laid off, they didn't get the bonus they were expecting, etc. So stocks have to be sold even if the underlying company has not been deeply affected.
However, video games are still a consumer cyclical product. If money is very tight in the family, the priority purchases are going to be food, power, and heat while things like video games take the back seat. The traditional consolation for video games in a recession is that they, like movies, are cheap forms of entertainment. It's a lot cheaper to buy the kids some video games or take them to the movies rather than take them on the annual trip to Disneyland or the like. People trade down in a recession. Some people trade down TO video games, some people trade down FROM video games.