The japanese video game market has been in decline for ages now.
The economic recession will of course not help to change that trend, but the Japanese video game industry probably has more to fear from the general trend than from this recession.
I think the economic cycle has a rather small impact on the video game market. It is supposed to grow to a record level in 2009 both in Europe and the U.S., isn't it?
I know for sure that in the case of Germany the market has been steadily growing in the past years, although Germany also faced a rather long period of little-to no economic growth (much like Japan).







