By Nintendo using the Wii, and to a lesser degree Sony's PS2, to turn video games into a mainstream entertainment industry across many, many demographics the industry enjoys some perks that Movies and Music do, namely being very recession proof. So slowing economies and economic hardtimes, short of extreme depression, will not crash the industry.
What will crash it is holding on to archaic distribution models. Right now there are only a handful of distributors and they show extreme reluctance to change models. Nintendo is the most progressive with tiered pricing between 49.99 to 29.99 and Sony comes in second with whole games being available for DLC, but if the price fixing mentality is not reformed we could expect significant losses.
_____________________________________________________
Check out the VGC Crunch this Podcast and Blog at www.tsnetcast.com
