Zelnick states the obvious: Games industry not recession-proof

Strauss Zelnick of Take-Two Interactive recently spoke at the BMO Interactive Entertainment conference and shared his opinion on the game industry’s standing amidst the ongoing economic turmoil. His observation: they’re not immune from recession. His prediction: it’s not looking good. Find out more about these earth-shaking revelations after the jump.

This one isn’t too hard to figure out. Strauss Zelnick of Take-Two Interactive has given his two cents on the ongoing economic crisis. His opinion: the gaming industry is not recession-proof.

We kinda figured that out already when companies started sacking their employees midway this year: Midway, LucasArts, EA. But I guess those weren’t exactly attributable to the economic plunge, so this statement from Zelnick should clarify the scenario even more.

At the BMO Interactive Entertainment conference, Zelnick observes that the gaming industry’s standing amidst all this turmoil “doesn’t look very good.” Fortunately, their company has already hashed a plan to combat the attacks of a hurting economy, highlighting the fact that yes, the industry is also a mere mortal like everyone else and so must take protective measures against the evil of the plunging dollar.

No matter what people think, entertainment in general, interactive entertainment specifically, isn’t immune to economic cycles… that said we can have some resistance to the cyclicality if we have really high quality products. In the last couple of weeks specifically we’re beginning to see some softness in retail, it’s pretty broad and it’s beginning to have an impact on the industry and by that I don’t mean a good impact.

But Zelnick does more than state what is already obvious. He goes on to share what they plan to do with the status quo. So what’s Take-Two’s plan given this less than inviting business environment?

In that context we think our strategy, which is to release a limited number of top tier titles, somewhat cushions us in the environment because must-have products should still sell… your overhead should be lower, your marketing costs should be lower…

It’s very difficult to predict what the impact of this economy is going to be on the consumer, specifically in the upcoming holiday season, but it doesn’t look very promising.

Let’s ask Ubisoft how they do it. They seem to be fine with their money, even buying off new companies to take under their wing.

• Headsd rolling: EA axes 600 employees
• Brash Entertainment to officially close down?
  
• Ubisoft buys effects studio behind 300, Sin City
• Ubisoft buys Massive Entertainment, takes World in Conflict brand with them

Via GamesIndustry