“In our view, video games are likely to weather a recession quite well. In a ‘normal’ recession, consumer spending declines by roughly 5% (from a gross domestic product growth rate of 2 – 3% to a decline of 1 – 2%). The widely expected recession has just begun, with tightening credit markets and low levels of consumer sentiment all but guaranteeing that consumer spending will suffer for the next several months. We are neither qualified nor prepared to forecast the extent or duration of a recession, but it appears to us that the stock market has concluded that the consumer will abandon games along with all other expensive consumer discretionary products; we think that this logic is flawed,”

I some-what agree with this. With the economy on a down fall people are going to look for something comforting to do, like gaming. I am sure the gaming industry is going to take a hit, but not as big as some companies like DHL and Circuit City, who both are facing big financial problems themselves.