people will adapt, though it might be a little painful of a process the way the prices keep skyrocketing up, i hear prices in the US will reach $5 in july. That's about 4x what it was when i first got my license about 9 years ago. In Japan the prices have only about doubled, although they are still much higher than in the US, still close to double.

Video games are moving towards downloads anyways, so are movies.

How do you plan on generating this hydrogen? You need an energy source to convert it from water and (currently) Solar and Wind power is way too expensive and inefficient, it is difficult to produce Nuclear powerplants because of the environmental lobby, it is difficult to produce Hydro-electric powerplants because of the environmental lobby, it is difficult to produce Fossil Fuel powerplants because of the environmental lobby and your energy would still be attached to fossil Fuels.

How are you going to get the infastructure for these Hydrogen powered cars, and who is going to buy a hydrogen powered car without having a place to fill it? We're in a 'chicken and the egg' situation which has prevented the switch over to every other alternative energy resource.

Realistically, the next step in transportation is going to be people switching to hybrid-electric cars and eventually switching to plug-in hybrid-electric cars; the electric infastructure will remain (mainly) as a fossil fuels, and we will (hopefully) see an increase in Nuclear and alternative energies. The home heating infastructure will remain (mainly) as fossil fuels, and we will (hopefully) se a move towards electric.

At the same time you're going to see China and India's ecconomies eat up 5% to 10% more energy every year, and most western countries will (moronically) introduce taxes on energies while limiting production, which will cause energy inflation over the next several years.

 California already has a plan in place to create a network of Hydrogen pumping stations. I do agree with about Hybrids being the first step.

I think the 4th point will prevail on the others, not being able to reduce more than of a limited amount necessary fuel expenses, people wil reduce consumption for leisure and will stay more at home, so TV, DVD's and videogames will thrive, just like TV already thrives amongst the poorest pensioners.

We use water way to innefeciently as it is to start wasting water on powering our cars (and that would take a lot of water).  Especially in the southwest were it is pretty much a big desert and the population is booming with retirees and the southeast with that huge drought they have going on can't affort to use a lot of water to power their cars.  If hydrogen is the future it has to come from something other than water.

They can generate the hydrogen for the cars by diverting the oil formerly used in the cars into electrical generating stations... problem solved!!!! Cheap hydrogen for everyone!!!!!

i dont see this being a huge problem on video game sales, yes prices may see a small hike or not drop as fast but nothing to effect the sales of people and this is largely because kids love games and so do core gamers so a core gamer would rather by a new game than see a movie or buy new clothes etc, and parents will buy kids games because its what they prefer, however it may have an effect on older players in their early 20's since they dont have lots of money to spend and increases in fuel and food bills will decrease the amount to spend on luxury items like games, personally i dont think parents or core gamers will stop buying games, but there is enough oil to last a lot longer than the media is making out, scientists say in the north sea there is just as much oil left in the north sea as they have taken out in the past 50 years its just harder to to get to, but with all the advancements in drililing technologies its possible to get there

in my personal opinion this is media driven scare and a poltical one that to encourage green fuels and green energy

Hydrogen fuel requires a lot of energy to create in the first place.  Nowhere in the world currently produces anywhere near that amount of alternative energy.  Hydrogen fuel basically requires high-density energy sources like oil, to be even remotely feasible at this time.

In any case, that's a side discussion.  I think this topic is a little too theoretical to discuss.

i was talking with my buddies at gamestop last week and the manager told me (hes actually a very smart business guy) that studies show that during slow economic times people still spend whatever disposable income they have on entertainment and food.  its true if you look.  everyone is complaining about gas prices yet they still go to eat and buy games, including me.  we all prioritize and for me gamins is more important than spending $30 on playing paintball espcially since the paintball only lasts for a few hours

QFT. Alternate energy sources are more tricky than people think. Hydrogen cells, like you said take alot of energy to make. At this point, they are not efficient enough to be of any use. At some point technology may be better, or the type of power production that would drive them (as in how we create electricity in plants) might be cleaner also (note: the new source for energy for this type of power would be different than a car. So only making clean power plants leaves us with the dirty cars :P. If we use the cleaner power plant's energy to make fuel cells though, both would be clean).

Of course, we hear about ethanol all the time. I think many have realized that it causes more harm than good as well. Lower food production impacts cost of living as well and is especially problamatic in developing nations. Pus, again, it is not as energy efficient as it could be. So what do we have?

1) Electric: Need larger storage capacity, atm power plant electricity production is dirty too. We have "cleaner" plants in some places (hydroelectric dama) but these have negative effects as well. Solar and wind atm don't produce enough energy though solar energy is promising

2) Hybrid: Uses gas and electricity. See electricity again

3) Hydrogen: discussed above

4) ethanol: Discussed above.

I'm sure I am missing some stuff so if anyone wants to add anything go right ahead.

Now, on to the actual thread! I think retail VG sales will go down to some extent. Even if people are still using thier disposable income for games, this income amount is lower. Money used for gas is increasing so alot of other product prices will go up as well. Vacations, travel etc is the first to be cut though, along with big ticket items (cars, HDTV, etc). People overall will save more. VG sales will not decrease as much as some other markets though.