Matthew Scallan used to get anxious when he ripped the cellophane off his brand-new video games, often shelling out $60 or more for the new releases. But after prices started to increase, Scallan, biology freshman, changed his approach for funding his hobby. The one-time purchaser of new games has become a bargain shopper — now peeling “used” stickers from the cover of games which cost him about $30. Scallan, like many gamers affected by the economic downturn, turned to previously owned games to maintain his hobby. And this sale of used video games is helping the industry dodge hits from the troubled economy and keep video game stores thriving during the national recession.Entertainment, including movies and concerts, will normally see a decrease in sales as people face hard economic times, said Richard Stahl, economics professor. But home entertainment — DVDs, CDs and video games — sales typically increase.GameStop Corp. reported a 22 percent increase in their holiday sales — from Nov. 2 to Jan. 3 — this season compared to last year. New video game software had a growth of 23.5 percent at GameStop during the holidays, and the top-five video games sold were Activision’s Call of Duty: World at War, Guitar Hero World Tour, Microsoft’s Gears of War 2, Blizzard Entertainment’s Wrath of the Lich King and Nintendo’s Wii Fit. GameStop also reported 19 percent of its sales during the nine-week period were from used video game sales. The locally owned Baton Rouge store, GameWare, also saw profitable numbers during the holiday season.Stephen Martin, Gameware manager, said his store on College Drive had an increase in sales from last year, and the Mall of Louisiana location matched last year’s sales. The retail side of the video game industry has not yet seen any direct effects from the troubled economy, Martin said. Derek Hoffritz, biological sciences sophomore, said he doesn’t think twice about cutting into his monthly budget to keep up with buying video games, even if it means cutting back on other activities. Cheaper entertainment — including rentals and video games — usually increases during hard economic times because people are looking for a way to save on the more expensive types of recreation — including concerts and movies, Stahl said. Hard financial times are a logical time to try to escape from reality, a reason for turning to video games, said James Honeycutt, communications studies professor.Anthony Difedard, manager at Blockbuster on Perkins Road, said though his location doesn’t offer a large market for video games, he sees a consistent group of customers buying used video games. The retail side of the industry is still profiting partly because of the Nintendo Wii, Martin said. “[The Wii] expands our market into people who didn’t play video games,” he said. Martin said he didn’t know of any store having the Wii in stock the week before Christmas.But the popular market could be fragile if people start to lose interest and get bored with new systems, he said. In 1983, video game users “just lost interest” in the Atari, and the market was almost wiped out, he said.But that problem is not the case this year, Martin said.Entertainment is one of the last things people will try to cut from their budget, Honeycutt said.Playing games can be a psychological outlet to escape trouble, Honeycutt said. Because people need diversions, Honeycutt said the video game industry likely won’t take a big hit during this recession. William Marhoffer, mass communication sophomore, said he enjoys playing games because of the competition and interaction with other players. “But money is an issue for me,” Marhoffer said. “Video games can’t be a priority [anymore].” Randy Dupuis, electrical engineering freshman, said he borrows games from his friends instead of buying them new. “I buy games used,” said Colin Kirk, political science freshman. Many people would stop buying new games if used games weren’t sold, Martin said. People bring in their old games to sell and use the money to buy the latest new games. But used games are a controversial issue in the gaming industry, Martin said.”Whenever a used game is sold, the developer doesn’t get a dime,” he said. While the retail side of the industry is financially stable, Martin said the recession is affecting the production and management side. Web site developers are cutting back, and studios are shutting down nationally.Depending how long the recession lasts, stores may begin to feel the effects, he said. But for now, GameWare has a good group of customers and doesn’t foresee taking a hit. Because video games can be addictive, users will continue playing even during hard times, said Alvin Burns, marketing professor and department chair. “They are difficult to stop playing because people become so involved,” Burns said. —-Contact Joy Lukachick at [email protected]
Video game stores report sales increase
January 27, 2009