Are Video Games Recession-Proof?

...Despite economic woes, report forecasts $57 billion in revenue in 2009.

By Ben Silverman

With the housing industry in shambles and gasoline costing more than sushi, U.S. consumers are feeling the pinch of a bleak economy.

But apparently, they're still playing plenty of video games. According to a new forecast report by market research group DFC Intelligence, the video game biz is expected to enjoy worldwide revenues in excess of $57 billion next year. That number includes hardware and software sales in 25 countries, 11 of which see annual revenue from games exceeding $1 billion.

"Consumer spending on software is at record levels and the game business seems to actually benefit from a recession because games are a relatively cheap form of home entertainment," said DFC analyst David Cole in a press release.

DFC also predicts that the Wii will go on to win this round of the console war, though they expect the PS3 to match the Wii in terms of annual software sales by 2012.

Interestingly, the PC remained the top platform for games overall in 2007, with online game revenue alone topping $7 billion -- not including retail sales. It would appear those negligible World of Warcraft monthly charges are adding up in a big way.