At E3, If Videogames Are Free....

N. Evan Van Zelfden is buzzing at the E3 videogame show in Los Angeles that the industry is feeling like its bullet-repellent shield is up against the weak U.S. economy.
 
Ubisoft's Jay Cohen points out hardware and software sales, "are stronger than ever. We're not having a difficult time right now. We're not a yacht, we're not a car, we're not a second home -- we're a form of entertainment."
 
That may be true but that doesn't mean that the business is standing still. Shiraz Akmal, the managing director of GCube Ventures, said he believes there's a lot of opportunity to explore other revenue models. 
 
"Look at free-to-play games, where a consumer can actually play, and have a great experience without actually having to spend any money." he says. "It's very recession-proof."
 
In Asia, Akmal says, "the industry has grown because all of the games are free," explaining that money is made through micro-transactions and advertising.
      
It's all part of the industry being able adapt to support what people are willing to spend -- unlike what's happened in the music business. "We're still at the tipping point of seeing lots of free-to-play type games -- even on the consoles."
 
I think that's something the Sony's and the Microsoft's of the world are going to experiment with in order to help grow their customer base," he says.

-by N. Evan Van Zelfden in Los Angeles