Video games have been especially resistant to an economic downturn, and that’s partly thanks to how the market for video games has expanded beyond hardcore gamers to a broader set of people playing casual games. But that market might be contracting.
Lazard Capital Markets analyst Colin Sebastian’s channel checks show a quicker than usual dropoff in sales of games, he notes today. What does that mean? A game’s initial sales are good, but then they quickly fall off. “We interpret this trend to suggest that the core market remains healthy, while more casual/mass market consumers are spending more cautiously.”
That’s potentially bad news for the video game industry — casual/mass market gamers make up a big part of the industry’s growth. But Sebastian does offer another potential explanation: He says that casual gamers could just be waiting to spend during the holiday season.