Nintendo May Be Recession-Proof, Rest of Game Biz, Not So Much

While much has been made of the supposedly recession-proof video game industry, a Bloomberg report says that if you remove Nintendo from the mix, the economic picture for the rest of the industry sags considerably.

U.S. sales of games, players and accessories rose 10 percent to $2.91 billion in November, researcher NPD Group Inc. said last week. Nintendo, maker of the Wii console, accounted for almost three-fourths of the growth, leaving the rest of the industry with a gain of 3 percent or less…

“If you’re worried about your job, are you going to buy a $400 PS3?” said Mike Hickey, an analyst for Janco Partners in Greenwood Village, Colorado. “Christmas is not going to have the same glow.”

The Wii, outselling PS3 and Xbox together by almost 2-1, also is having an impact in software. Five of the top 10 titles last month were for the Nintendo player…

 

The company also is leading in sales of handheld devices. Consumers purchased 1.57 million DS machines last month, up 2.6 percent from a year earlier, according to NPD. Sony’s sales of 421,000 PSP players were down 26 percent from last year.

GP: Bloomberg makes sense on this one. After all, EA is hurting. Sony is a disaster right now. Midway’s future beyond January 31st is questionable. NCsoft has cut back. And they’re not the only companies that are hurting.

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