Economy

No Recession For Video Games Or Hamburgers

"It is a very counter-cyclical industry,"  Burger King (BKC) Chief Executive John Chidsey told Reuters. Have a look at the menu at the fast food chain or at larger competitor McDonald’s (MCD). A person can eat well on $25 a day, or even less if they go for the "value meals". The food may not be healthy, but it is filling.

Over at Nintendo, the video game company reported record earnings and revised upward its estimate for sales of its Wii for the fiscal year ending in March. The firm now expects 18.5 million units to be sold up from an earlier figure of 17.5 million.

The video game industry shows that even a modestly expensive product can sell in large volumes in a weak economy if its value is clear. Video game consoles sell for $200 to $500. Video games are under $100. But, heavy video game users play for hours a day. That means the net cost of the products is in the pennies a day. Even modest gamers are probably not investing more than $1 a day over the course of a year.

It is only now becoming clear what items consumers will buy in a tight market and which they won’t. Fast food and Madden 2008 made the cut.

Douglas A. McIntyre

It’s Your Money, Your Future—Own It (sponsor)

Retirement can be daunting, but it doesn’t need to be.

Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.