6 Ways Coronavirus Pandemic Will Impact Gaming Industry
In the Great Recession of 2008-2009, IDG Consulting’s gaming thesis was that the gaming industry was not recession-proof, but recession-resistant. The games market actually grew in 2008 by 20%; it still declined in 2009, but its 12% drop was less pronounced versus other segments. After September 11th, the U.S. gaming market actually grew by 42% in 2001, and 11% in 2002. The replayability value of gaming insulates it from downturns and in both historical cases, made it more compelling versus alternatives. In 2008-2009, there was also a marked increase in content innovation on console and PC, and the early signs of a burgeoning smartphone market. Gaming will likely once again prove to be recession-resistant. One caveat is that the last recession occurred in a pre-subscription era. Today, consumers absorb copious amounts of content through entertainment subscriptions (e.g. Netflix, Hulu, Disney+, Spotify), which gaming will have to contend with this time around. By no means are we saying that all consumers will be able to spend freely on games, and the level of recession resistance may vary by platform. While free-to-play (F2P) makes up a greater proportion of game offerings in today’s world, even these games have to monetize somehow for...
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