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The economy vs casual gaming

April 4, 2008

This analyst pits these 2 to the death.

Casual gaming growth has been driven over the last three years by the Nintendo DS platform. Demand has peaked in Japan, and we believe is currently peaking overseas. Compounded by a less robust retail environment, we expect to see a decline in the handheld sector…

He blames the lagging American dollar (i guess) and suspects that the current economic situation will hit the industry where it hurts: casual gaming. (Yes!!)

A recessionary environment is negative for the electronic entertainment industry, but we believe the core gaming market to be more resilient than its casual counterpart.

The casual market looks more exposed to an economic downturn, due to its non-essential nature. The sector remains ‘hit-driven’, which provides a positive outlook for the companies with strong core title line-ups.

With the PSP sort of owning 2008 so far, and with this guy’s proclamations, could 2008 for the casual market be like Federer’s up till now?

Has the DS peaked in Japan, the profitable Motherland? Will casual software survive? More importantly, will casual gaming or Federer turn things around as the calendar pages flip? We shall see. Mostly curious about the Federer part.

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