When there is a change in the quantity demanded it is important to know why so that you know how to respond appropriately. Empirical economics is increasingly concerned with how to distinguish the identity of one possible cause from another, or we are concerned with the "identification strategy." Many students have been failed and many trees have been felled due to the investigation of poorly identified effects.
Some of our techniques can become quite sophisticated and this limits their applicability in business settings. One writer over at Hellforge (love the name) provides a seat-of-the-pants argument that the recession is not completely to blame. Rather, the newer games "suck."
The recession is not affecting the video game industry proportionally any more than it did from the outset. Recent game releases are above average quality ... but aren't as good as the AAA releases from last year.Hat tip Craig Depken
Well that isn't a bad news anyway. From all of the hardship worldwide is experiencing, at least the gaming industry was able to cope with the economic crisis. Despite the fact that they need to cut a bit on costs, they manage to produce such Online/Video/Download Games with above average quality. Demand for these games never ends.
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