Why video game sales are still strong

360 controller
360 controller

Despite the grim reality facing the consumer electronics industry, which saw a decrease in spending of close to 14%, the largest drop since the category has been tracked; video games continue to rake in the cash!

In fact back in June, when people thought we were well into a recession, my colleague Zac Bissonnette took the stance that things couldn't be all that bad since we spent 37% more on games than the previous year.

Personally I feel that strong home entertainment sales such as video games or movie rentals signal a shift in consumer spending, which reflects the current financial situation: Consumers are looking for high value diversions.