The Impact Of Economic Growth Rate And Unemployment Rate On Video Game Sales In The Console Gaming Industry Of North America And Japan

Previous research has established that customer demand drives the growth of sales in many industries,such as: education,construction,agriculture,etc.However,the entertainment industries,or more specifically,the console gaming segment of the video gaming industry,stands apart.The psychology literature points out that people are motivated to buy entertainment products such as console games to escape from the hardships of reality.Motivated by the fast-paced growth of the console game industry,as well as the different sales patterns between the console gaming industry and other industries,this paper asks an important question: how do economic conditions matter for sales of video games in the console gaming industry?This paper proposes that the console gaming industry will have positive game sales when economic conditions improve.Moreover,it will also observe a growth in sales when the unemployment rate increases.To understand this motivation,this study further explores how the game type: the "action-driven" or "thought-engaging" game will moderate the relationship between economic conditions and game sales using the game sales data in the North American and Japanese markets.The findings largely supported the propositions provided in this study.Adhering to previous expectations,the game sales are positively and significantly correlated with a growth in general economic wellbeing.The results also demonstrated a growth in sales during times of increased unemployment.The study also found that "action-driven" games are preferred in times of positive economic growth,but only in the North American market,while the other group dominates sales in Japan.The moderating effect of game type,described as the primary candidate for fostering "escapism" at times of economic woes for customers,was not supported by the results.Subsequent testing was performed to see if the perception of customers towards these types of games changed as a result of economic influence.Results were supported by the Japanese market.Further research could investigate the cultural effects at play in the North American and Japanese markets.