In the face of pandemic lockdowns and social distancing, many turned to video games for entertainment and socializing, which sent game revenues soaring to record highs in 2020. But, game companies are starting to wonder if sales can keep rising as the economy slows down. Entertainment has a reputation for being recession-resilient, but the game industry is facing supply problems and increased competition from the return of live events like concerts and sporting events.
Class discussion: How much time and money do you spend on playing video games? Would you rather play electronic games or go out to a movie, concert or sporting event? Why? Is it easier for you to socialize by playing online games than going to a live event with other people? Why has video gaming grown bigger than music and movie industries combined? Will gaming ever become more popular than television, which makes more than twice as much money? Can any business really “keep growing forever?”
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