Media Centre: In the News

Gaming Industry Hangs On
Published February 18, 2009

Despite tough times economically, video games seem to be recession-proof

Nick Lewis, Calgary Herald

Despite the ongoing recession, new video games will be the last thing Reza Kouhang cuts out of his household entertainment budget.

The 33-year-old financial analyst typically spends winter hibernating indoors with a few of his favourite new titles and, despite the economy, his spending habits haven't changed so far this year.

"I'll be buying as many if not more games this year if some good titles come out," he says. "I was always very selective with the titles I buy so my buying patterns won't change because of the recession."

He's planning on purchasing Killzone 2 for the PlayStation 3 when it's released next week, and said he believes he'll get more than enough value for the $70 he'll spend.

"I look at it this way," he says. "If I spend $100 or $150 on dinner with my girlfriend, what's $60 or $70 for a game that I'll play for hours and hours? If you break it down by a price per hour for your own entertainment, games are extremely affordable and worth it. I'll be playing Killzone 2 for months."

Kouhang is one consumer who seems to be proving the adage that video games are recession-proof. And a glance at the numbers seems to back that up.

The video gaming industry made a record $63 billion globally in 2008, and game sales were up 35 per cent in the U. S. from the year before, according to market research firm NPD. It helps that the industry's typical consumer is a male 30 years of age or younger, consumers who treat gaming as necessary rather than discretionary spending.

Almost half of all Canadian adults have played a video game in the past four weeks, according to the Entertainment Software Association of Canada, while 82 per cent of all adults have played at least one video game.

And it shouldn't be a surprise that escapism continues to sell in a time of economic doom-and-gloom. When the Great Depression hit, people hit the movie theatres in droves, willing to drop a quarter at the box office to forget their troubles for a couple of hours.

But there's two sides to every story.

While the biggest games of 2008 (i. e. Call of Duty:World at War, Wii Fit, Mario Kart Wii) reaped millions for their developers and publishers, the sheer number of titles released in 2008 meant a lot of lukewarm receptions from the public, receptions that cut into the profits those companies made.

Three industry giants--Electronic Arts, Activision Blizzard and THQ --announced fall 2008 losses of $310 million, $108 million and $115 million respectively. EA, the world's biggest video game producer, was forced to cut 11 per cent of its workforce (1,100 people) last month and cut down the number of projects in development, while Microsoft announced it will axe 5,000 jobs over the next 18 months from its gaming division.

These preventive measures were taken to ensure the health of the industry, the companies say, and a focus on a smaller number of games of a higher quality will benefit both developers and consumers.

While it's tough to spin tech layoffs positively, as consumers, it's good to know there's a greater focus on quality of games being released in 2009. Because these companies were spread so thin by the number of projects they took on, there was a rash of mediocrity once you looked past the bestselling games of the year.

Some of the most anticipated video games of 2009, which we've listed in no order below, should have no problem keeping their publishers in the black. These are titles that are generating the most buzz online right now and show no sign of being affected by the economic downturn. The overall health of the industry is set on their shoulders, as their success or failure could make or break some promising companies.

Just a reminder, the list is a look at console gaming (PS3, Xbox 360 and Wii), which is why we've not included PC-only titles such as StarCraft 2 and Diablo III--both of which are likely to sell well also.

Killzone 2 (PS3) Released: Feb. 25

Anticipation for this PS3-exclusive first-person shooter has been very high since its announcement back in 2005, so much so that 1.1 million copies have already been ordered in Europe alone. Rumoured to have one of the biggest budgets ever for a game ($60 million by some estimates), Killzone 2 could end up as one of the bestselling titles of 2009.

Final Fantsy XIII (PS3) Released: 4th Quarter 2009

Gamers who love the Final Fantasy role-playing franchise really, really love it, and have made it the fourth-bestselling gaming franchise of all time with 85 million units sold of its dozen titles. No doubt, there is a lot of anticipation behind the 13th instalment, which is set for a Japanese release by the end of the year.

God Of War III (PS3) Released: 3rd Quarter 2009

This blood-soaked hack-and-slash adventure franchise finally makes it way to the PlayStation 3 this year after successful campaigns on the PS2 and PSP. The original God of War was hailed as the best PS2 game ever, and there's hope GOWIII may receive similar accolades on the PS3.

Madworld (Wii) Released: March 10

Looking like just the sort of hyper-violent title the family oriented Wii needed, MadWorld is set in a stark black-and-white comic book world where you, as protagonist Jack, can maim and kill enemies in the most imaginative and hilarious ways conceivable. It carries a very strong "M" rating.

Velvet Assassin (360) Released: April 14

Inspired by the real-life saboteur Violette Szabo, this stealth-action title has you play as Violette Summer, a deadly Mi6 spy behind enemy lines in Germany during the Second World War. Using stealth and cunning, you control Summer as she steals information to thwart the German war machine. Violette has more than 50 stealth kills she can use, including being able to lure enemies to a puddle of gasoline before she lights it.

Street Fighter IV (PS3, 360) Released: Feb. 18

The arcade version of Street Fighter IV was considered one of the games of the year in Japan, and it should fare very well in North America where it sees release this week. Remaining on its original 2-D plane, models and characters are now rendered in 3-D, making this fighting game look prettier than ever while playing as frenetic as always.

Halo 3: ODST (360) Released: 3rd Quarter 2009

This stand-alone expansion pack for Halo 3 isn't a full game and doesn't have you play as protagonist Master Chief. Still, set in the Halo universe with similar first-person shooter gameplay, ODST (Orbital Drop Shock Trooper) should add to the 25 million copies sold of Bungie's Halo trilogy.

Call Of Duty: Modern Warfare 2 (PS3, 360) Released: 4th Quarter 2009

The Call of Duty franchise returns to modern warfare as developer Infinity Ward comes back to the helm. Little is known about the sixth Call of Duty game, but considering Nos. 4 and 5 both sold incredibly well, the series' massive fan base should make this a winner.

Uncharted 2: Among Thieves (PS3) Released: 4th Quarter 2009

Uncharted: Drake's Fortune was one of 2007's gems, selling two mil-lion copies worldwide and boosting sales of the PS3 console. Its sequel has you play as treasure hunter Nathan Drake again, this time as he uncovers the mysteries behind 13th-century explorer Marco Polo and the ships he supposedly lost en route to Italy.

Mafia II (PS3, 360) Released: 3rd Quarter 2009

Best described as The Godfather meets Grand Theft Auto, Mafia 2 is an open-world third-person shooter that has you play as Vito Scaletta, a Sicilian immigrant looking to rise in the world of crime. Set in New York circa 1940, the title allows you to freely roam a map of 10 square miles right from the start.