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Credit crunch: Analyst opinion, part two
Nicholas Lovell
Video games consultant
July 1, 2008
The credit crunch will not have a meaningful impact on consumer spend on games purchases.
Games are a cost-effective form of entertainment per hour and are a satisfying impulse buy when consumers are cutting back on foreign holidays and other similar luxuries.
There are two areas where I am concerned in the short term: Subscription-based MMOs, which are a ripe area for a cost-conscious consumer to trim, and new games businesses which are entirely dependent on online advertising, especially if they do not have a clearly-differentiated audience.
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