A growing market during a recession

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Although a recession in the year 2001 the video game industry generated over $4.3 billion in revenues. In the year 2004 this amount was $25 billion. And optimistic prospects predict a revenue over the $100 billion in the year 2010. It seems that the recession and the weak economy in most part of the world do not influence the revenues of this industry in a negative direction. The reason is simple. People need entertainment. In these days with a high mental pressure people need some entertainment to calm down. People used to read a book, watch television, visit the cinema etc. But nowadays games are the substitute. This implies that people prefer spending money on a video games what means cash for the video gaming industry.


Different forces enable the growth of the gaming market:

  • Heavy competition between Microsoft, Sony and Nintendo force them cut down the prices of the consules. The low price induce consumers to buy a consule. The sales of consules are a crucial factor because sales of consules means automatically sales of games.
  • The primary target for video games were male. Now a change is visible towards female gamers. Their spendings constitute a big part of the total revenue for this industry.
  • The Internet makes online gaming possible. Consumers do not buy a game to play it alone but together with friends nowadays. This implies that those friends also need the video game in order to play it.


Several factors inhibit the growth of the gaming industry:

  • Scientific evidence has proven that violence in video games has a negative effect on the behavior.
  • Goverments can reject video games. In countries like China certain video games are forbidden to play.
  • Illegal copies of video games means a lost of revenues.


Video games were seen as a toy for computer freaks who play a video game day and night. This view has been replaced that video games is meant for everyone regardless the gender and the age. Everyone can use them as a form of entertainment



  • 2001: worldwide recession, most industries have declining revenues but the video gaming industry generated revenues exceeding revenues of previous years
  • 2004: weak dollor, economy Europe grows hardly, but video gaming industry generated revenues of over $25 billion.
  • 2005: Japan suffers a recession but more than a half million Nintendo DS are sold within four days.

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