I always thought the video gaming industry would not suffer much from these economic down times. Regardless of what the banks, oil and car industries are facing, I thought paying $60 a month for a game or $40 for unlimited rental for a month was a small manageable expense. I guess i was wrong. Apparently the fear for a failing market has bleed into the gaming industry as well. The following is the stock price of Electronic Arts during the course of the past year – courtesy of Marketwatch.com:
Usually gaming stocks jump up and down by as much as 10 points every quarter, but the stay consistent and only during major breakthroughs do they climb real high. This however, is a bloody nose dive.
At first i thought well, the months of sept. to nov. are slow months for video games, because people are saving up for the holidays. And i believed the success of Warhammer and Little Big Planet might keep peoples faith in the industry over time. Apparently not when EA stocks steadily fell from 50 to 15. I guess investors, who are feeling their pockets getting lighter are just pulling out without of the market before they lose everything. Or maybe its something else. I dunno? What do you all think?
