Eurogamer: The recession will hit the Wii first.

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Deneidez said:

NJ5 said:

The part regarding the Wii is not justified, he just claims that the hardcore sector will be affected later. This makes some sense (which doesn't mean it's true), but note that it doesn't mean Wii's sales will actually suffer significantly. It just means they could stop growing year-on-year, in which case they'll still be selling a lot. And of course, Nintendo always has the option of cutting the price to stimulate demand.

Wii -> more casual product, do casuals 'need' wii? No, not really. Its more like luxury product for them.

Do core players need X360 or PS3(And games...)? YES! :)

And for X360&PS3 vs recession, X360 will be less affected because of low price. PS3 is more like luxury product compared to X360.

(Just commenting logic behind that article.)

 

Let's assume that we have a group of 1000 people, each have 100€ disposable income on average.

50% of the group spend the whole 100€ to games, while the other half spend only 50€.

Recession hits and disposable income is cut by 25%, which means that the groups now have 75€ disposable income.

The segment that is using all their money into games, is hurt by the 25% directly, when the other group still can maintain the 50€ level to spend to games. In reality, the group that's using only half of their income to games cuts down their expenses too, but the percentage is smaller than in the other group.

 

The less people (per person) are spending into something, the less it's affected by recession and the opposite. No matter if it's even food.