Economy Slows but not in Video Games

More bad news today about the US economy including the fact that U.S. employers cut payrolls for a third consecutive month in March and the jobless rate jumped to a 2-1/2 year high, adding more evidence that a housing downturn and credit crisis may have pushed the economy into recession. The Consumer Confidence Index is at a five-year low.

We often get asked what a slow down in the economy means for the mobile game industry here in the US. We don't really know the answer because we haven't been in this business long enough to have any meaningful data, but if you connect the mobile game industry to the overall video game industry, I don't think we have too much to worry about.

For support, read this article from CNN this week about Gamestop - the largest retailer of video games in the US.

Highlights:

- Times are good, with double digit growth expected for sales of games this calendar year as well as for the hardware that's used to play those games.

- Success for GameStop is "highly attributable to video game play attracting a mainstream audience," with the demographic expansion having much to do with "new consoles like the Wii, which pull back on the geekish complexity of typical content aimed at hardcore gamers."

We will keep you posted as we get more data.