At the Chateau Marmont, the trend is to reduce quantity, not quality. In the past, major studios have thrown 1,000-person parties, but those have been replaced by events for 300, such as Paramount’s pre-Golden Globe party last month. And financier and socialite Nicolas Berggruen downsized his Oscar week gala Wednesday night to about 600 guests from 800.

“Everything is smaller, said event planner Lara Shriftman, a guest at Berggruen’s party. “Everyone is budget-conscious, and when you are trying to save, you invite fewer people, make the party shorter and don’t serve dinner. People also don’t spend what they used to on flowers and invitations and more people are entertaining at home.”

The Oscars show, which producers hope will at least match last year’s record low viewership of 32 million, generates $130 million for the local economy (plus ancillary publicity and sales that companies worldwide get from Oscar-related placement). That is no small number in a state that is in financial crisis with a $42 billion budget deficit.

“The Academy Awards is a signature event for Los Angeles that creates jobs and has a big overall impact on our economy,” said Jack Kyser, chief economist for the Los Angeles Economic Development Corp. While he underscored that parties may be fewer or more low key, he stressed, “They haven’t reached the point [of shuttering Oscar Week] and they never will.”

Jimmy Choo co-founder Tamara Mellon has been operating an Oscar week suite since 1999. The brand is opening the suite later than usual, but Jimmy Choo has maintained its presence not only during Oscar week but also at the Golden Globes and the British Academy of Film and Television Arts awards, as well as for the Cannes Film Festival in May. Mellon will again host an Oscar lunch on Friday for 100 people.

“The Academy Awards act as the biggest global red-carpet platform for luxury brands and has offered [us] a huge awareness opportunity,” she said.

Nadja Swarovski who heads her family company’s fashion division, is another 10-year Oscar week veteran who has partnered with Jimmy Choo in past seasons to create custom Oscar accessories.

“Nonetheless…we are sensitive to the climate,” she said.

Swarovski was the host at a cocktail party for 250 people on the rooftop of the Thompson Beverly Hills hotel Wednesday night, which was a more intimate gathering—cocktails only, no dinner—than in previous years, when she had taken over the Ace Gallery in Beverly Hills for a runway fashion presentation and 500-person-plus event.

“The Oscar season…provides an opportunity to highlight how crystal remains an affordable luxury for women in spite of the economic climate,” Swarovski said.

But simply giving things away is not as economical, so while swag suites still abound—there are no fewer than 10 offering everything from diamond facials to eyelash extensions—the booty has considerably dropped in value.

“This year, as everyone’s marketing budgets are tightening up, I suspect the gifting will be more focused on A-list actresses, and still those will be small discreet modest things,” said Sally Morrison, president of the Diamond Information Center. “If someone fabulous comes through the door they will get something, but it’s much less of anyone coming through the door and leaving with a little bag of stuff.”

The center used to have a multiday suite for stylists and press but this year is sticking with a 50-person dinner hosted by Julianne Moore as its sole marketing event.

“I’m not sure if the gifting will be missed in terms of overall marketing results,” Morrison said. “I don’t know what the return on investment is vis-à-vis a suite, but it’s not immediate and at a time when dollars are under pressure it’s a relatively easy thing to give up.”

Of course, it’s all relative.

Montblanc hopes to make a splash by launching a new initiative with longtime charity partner UNICEF on Friday night at a 250-person seated dinner on the Paramount Studios lot .

“It’s an intimate private dinner with a more modest atmosphere, not a big party or show,” said Ingrid Rooson, the company’s director of cultural affairs. “We have the feeling celebrities like to sit down to dinner surrounded by people they know.”