Is Gaming Recession Proof?

Let’s travel back in time to the 2008 fiscal year for Nintendo as an example. Despite the global economic downturn, Nintendo’s revenue soared by 73%, largely thanks to the runaway success of the Wii[1]. Why? As people cut back on out-of-home entertainment, they looked for affordable ways to stay entertained indoors. We saw a similar pattern during the pandemic, when lockdowns drove a massive shift toward digital leisure—remember Zoom quizzes and Among Us? So, could gaming see another boom if recession pressures intensify?
To answer that, we first need to look at how the industry has evolved since the pandemic. One major trend is the dominance of live-service games like Fortnite and Roblox. The latter hit an astonishing 380 million monthly active users last year—showcasing the continued appetite for immersive, always-on gaming experiences. These titles often operate on free-to-play models, monetizing through microtransactions and brand partnerships, making them both accessible to players and lucrative for publishers.

But it’s not all growth as the industry has also been through a period of quite harsh correction. In 2024 alone, over 14,000 gaming jobs were cut[2], as companies restructured after the pandemic-driven boom. This has made the industry leaner, more cost-conscious, and arguably better positioned to weather future economic shocks.

Still, concerns remain about rising costs for gamers. Console prices have recently increased in response to tariffs, with both Xbox & PlayStation recently announcing price increases on their consoles. There’s also the example of the Nintendo Switch 2 with games being priced at $80 – $10 above the now-standard $70 benchmark (for a physical copy). But it’s also worth mentioning, that gaming alone isn’t the only category experiencing price increases – with companies such as Samsung hinting at incoming price increases[3]. Yet despite this, gaming remains relatively affordable, especially compared to other forms of in-person entertainment. With a wealth of free-to-play titles and the highly anticipated release of GTA 6 on the horizon, the industry has compelling reasons to remain confident.

In short, while the landscape has changed, the fundamentals remain strong. Gaming may not be entirely recession-proof, but it’s set up to succeed in the current economic climate. As consumers once again look for accessible, at-home experiences in uncertain times, gaming is poised not just to survive, but to thrive.

[1] 2008 fiscal year | Video Game Sales Wiki | Fandom
[2] 2025 Games Industry Layoffs | Video Game Layoffs
[3] Samsung says US tariffs will affect prices and demand for smartphones and memory chips

Photo by Jamie Street on Unsplash