Alex Pham of the Los Angeles Times on how no, the gaming industry is not in fact immune to the meltdown of our global financial system.
The video game sector dropped much more sharply than the Nasdaq. Activision Blizzard Inc. saw more than $4 billion in market value vanish this week, close to a quarter of the Santa Monica company’s value. Electronic Arts Inc. lost more than $2 billion.
Theories abound about why game companies are suffering worse than the broader market, calling into question the notion that the sector is recession-proof because it provides more entertainment bang for the buck.