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Archive for December 23rd, 2008

Forgive me for the academic subject for this mornings post, but my colleague MJ clued me in on this from the Economist about the durability of the gaming industry. There are some interesting points in here, including their assessment of the cyclical trending of the industry.

Every few years a new crop of consoles is launched, spurring a wave of sales as gamers upgrade. During the cycle the prices of the consoles fall, bringing in more buyers. Each cycle is bigger than the last as gaming becomes more popular and the average gamer becomes older and richer.

This is a good look at how the current generation is dominating the last one, which dominated the one previous, and so on and so on. The article continues to discuss what I told Microsoft when my Xbox broke – that working males in their twenties “who regard gaming as an important part of their lives, rather than a form of discretionary spending” are their bread and butter. I couldn’t agree more.

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