Two of the world’s biggest economies have been living on borrowed money for years. In Britain and America both the government and private individuals borrow huge amounts ofÂ other people money to spend. It is profligate, it creates a false aura of wealth and, self evidently, it cannot go on for ever. It has to end in tears one dayÂ and it is beginning to look like people are nowÂ starting to face reality. Unlike the great depression it won’t go all pear shaped. Wealth is better distributed globally now and economics are better understood. But it still won’t be pleasant for a lot of people.
Already one of the major engines of the British economy, the City of London, is suffering large job losses. Over inflated house prices are on their way down on both sides of the Atlantic. Retail spending is down as people slowly begin to realise that they are spending money that isn’t theirs. And all these factors are cross linked in the economy. So they drag each other down and, like a rollingÂ snowball, grow. So things are going to get far worse. The mountain of debt makes this inevitable.
Now for the good news. It isn’t going to effect us. Yep, that’s right, the video game industry is immune to all this economic nastiness. (Probably)
Go and visit some deprived social housing with high levels of unemployment and the first thing that you will see is the 40 inch flat screen televisions. Even when they are living on a diet of friedÂ chipped potatoes. You see, the thing is that people give up entertainment last. This was furthered proved in the Great Depression in the early 1930s when Hollywood had some of it’s most successful years. And so it will be with us.
So now you know, if you were thinking of leaving the industry, don’t. If you want to know where to invest, it is obvious. If you were going to expand your game industry company, now is the time. Our global industry currently turns over $33 billion a year, in justÂ two years it will be $47 billion, a 40% increase. And a bad economy isn’t going to stop it.
So are you us to your ears in debt or are you an investor looking to put money into this dynamic, rapidly expanding industry?