Lemme highlight some stuff first.

(1) Physical media is about to become a lot more expensive (well, heck, everything from food to electric power is)... because it needs to be both produced and shipped by oil-based industries. Everything from the plastic coating on the discs, to the packaging is made primarily from oil, and the components of the "non-plastic" parts are usually manufactured with or dependant on oil as well. Shipping costs will skyrocket (for obvious reasons), and every last "ingredient" in every game and console component is shipped from somewhere -- often very long distances. Usually the amount of oil used in their production is pretty hefty as well.

(2) Games are entertainment. As the US economy slumps, so will the rest of the world (although not as much, IMO). Entertainment products are usually the first to go.  Or are they?

(3) What affect will console demographics have on this? Will PS3/360 owners buy more games, because they are more likely to be devoted gamers? Will the Wii drop drastically (I should say "more drastically"), due to its appeal to the general populace (i.e. the group most stricken with economic woes).

(4) Will gaming pick up, due to its relative lesser expense than driving to a movie, seeing a pro-sports game, cheaper-over-time than rental movies, etc.?

I'm sure this will spark some serious disagreements over exactly what the oil issue means to the world, but try to keep it on topic. =)

Oil is no where close to as bad as its going to get. I can't speak for other countries ebcause I don't know their governments poilies toward oil; but atm we aren't paying in pump gas exactly what crude barrels are selling for.

Here is an example:

8.00 a gallon (if crude prices were instant on changing gas price) = 150.00 barrels

We are currently around 140.00?

I'm calling

(A) All console sales drop drastically by years end.. the Wii included, despite its low-power profile.

(B) New games hit $100 USD in the US by mid next-year.

(C) Sony cleans up, buying US developers for dirt cheap.  Heck... if they and Nintendo don't go out of business that is.

(D) Portable gaming rules the world by the end of next year.

Crude isn't going to drop, ever.  The US peaked in the 70s, the world in general peaked in 2006 or so.  All downhill from here.

Maybe this isn't the best subject to breach on this board. The end of gaming, as we know it, won't be fun to talk about. =\

>> (2) Games are entertainment. As the US economy slumps, so will the rest of the world (although not as much, IMO). Entertainment products are usually the first to go.

Entertainment is generally considered to be one of the recession-proof industries, however.

Hmm.  I hope so.  I hope that gaming falls under a general category that is somewhat sturdy.

Also, I find it really humorous that the VGChartz site likes to stick car ads under my initial post. Lol.

Firefox + Adblock + NoScript = Clean Forum

I don't have specific data at hand, but as far as I remember, game industry has been fairly resistant to recession.

I'm not entirely sure, but it seems to me that the subprime issue is more detrimental to the overall state of economy, and by extension to our disposable income.

People will be more likely to pick up a video game system for the kids in bad times over more expensive things like a family vacation. So video games is in pretty good shape, unless gas prices really go through the roof, but that isn't going to happen. One reason oil is $140 per barrel is because the economy is weak and oil is tied to the US dollar, as it gets stronger the price of oil will come down. In the mean time, Saudi Arabia (I think) is going to start pumping 500,000 more barrels of oil a day. It won't do much, but it should slow down the increase in prices a little bit. Other Arab countries will do this also because as oil becomes more expensive it makes alternative choices more appealing and that isn't in the Arab states best interests, they want us to be buying oil for decades to come.

You didn't just mention Firefox + Adblock did you?

Aanyways, I think gaming will rise because of the expensive oil. The higher gas goes, the less people travel on vacation; the more people will stay at home and will need entertainment. Thus Videogames benefit.