MediaFile

from Summit Notebook:

More or less fun in a recession? It’s a tough call

EA_Jens_Uwe_Intat_SVP_Reuters_Summit_Paris_2010_17_May_30pctStill unsure whether economic recession is good or bad for video-games sales, more than a year in? If so, you're in good company -- neither does the world's biggest games publisher. Electronic Arts' head of European publishing says the company still hasn't figured out whether people cut spending on big items like housing and cars first, or whether those kinds of decisions are just too hard.

"We really wonder, hmm, in economically difficult times would people in order to have SOME fun actually play more games or less games, and then, would they spend more or less?  It's really, it's impossible to say," Jens-Uwe Intat told the Reuters Global Technology Summit in Paris.

In the early days of the downturn, the industry was widely thought to be recession-proof as people chose cheap stay-at-home entertainment over pricey nights out. That assumption was later turned on its head.

EA, whose franchises include Need for Speed and The Sims, was flummoxed last year when it was hit with a 10 percent drop in the market for packaged games, instead of the 7 percent increase it had been expecting, Intat said. It has since become shy of making forecasts.

Digital, Life, Design 2010 Live Coverage

DLD (Digital – Life – Design) is a three-day experience gathering 800 entrepreneurs, investors, philantropists, scientists, artists and creative minds from all over the world. With global diversity in attendees and an interdisciplinary perspective of digital, media, design, art, science, brands, consumers and society, the conference is known as the European forum for the “creative class”.

Follow live coverage of the conference here

Gamescom lands on gamers’ map

Two days ago, Sony finally announced it would cut the price for its flagship
PlayStation 3, reacting to slumping sales which have lagged
behind those of Nintendo’s Wii and Microsoft’s Xbox 360.

But industry experts, who had long expected such a move,
were more surprised about the location Sony chose for its
announcement than about the decision itself.

“The fact that Sony decided to announce the PS3 price cut at
Gamescom shows the importance they attach to it. This has been
one of the most important decisions they’ve made in the
segment,” said Ed Barton, analyst at London-based media research
company Screen Digest.