| HappySqurriel said: When you consider how much money families are spending on communications, energy, transportation, clothing and shelter the ammount of money they spend on videogames is pretty minimal. Basically, on average a PS3/XBox 360/Wii owner is buying a new game about every two months which works out to a cost of (roughly) $30 per month to play videogames (or $40 to $50 if you include hardware costs) ... Large expenses that have a recurring cost (like cars) are the first things people will cut back on, followed closely by day-to-day "latte factor" expenses like going out for lunch at work and buying fancy coffees ... It isn't that uncommon for a family to be able to save $1,500 to $5,000 by cutting back on "latte factor" expenses, and many families can save $12,000 by owning a car for 7 years rather than 5. A family has to be struggling really badly in order to look at the $30/month they pay (on average) for new videogames as a place to save money, or to look at a $200 to $300 system as being a major expense. Now, as you can imagine, when families cut back and start saving $500 to $2,000 per month they soon hit a point where they're less terrified about the economy and are just careful and cautious. Events like Christmas come along and for $500 you can buy a videogame system that everyone in the family can be very pleased with and get enjoyment out of. |
Exactly.
People get scared and unsecure so they cut on the big, risky expenses but that gives them more money available to spend on small expenses.
EDIT: Is this correct grammar BTW - is it rite to say "to spend on expenses"?
