Publishers Versus The Economy

His colleague, the newly promoted COO Peter Moore, had a clearer view on the subject: "I don't think EA as a company believes we're about to go into a double dip recession."

"Even though we're theoretically in recessionary times, iPads are selling at a breakneck record, smartphones are setting records, the console business goes up and down depending on what month it is."

Indeed, over the last year EA has been a growth business, expanding operations in Texas and snapping up casual developer PopCap, but other areas appear to be struggling. Just this week it was confirmed that EA's Visceral studio in Melbourne would be shutting down, after the project it had been working on for three years was cancelled.

We haven't been immune from having to do some rips over the years, but we've still got a large company now that's hiring.

Peter Moore, EA

"We've not been shy about making acquisitions when we couldn't build organically," adds Moore. "In the last two years Playfish and PopCap have been pretty sizeable purchases, which, from our perspective, you look at some of the valuations where we live, in Silicon Valley, and every day they look like great deals."

He believes EA isn't just growing, it's "right-sizing," and, he stresses, still recruiting. "We haven't been immune from having to do some rips over the years, but we've still got a large company now that's hiring. We're a company that's hiring aggressively."

There's no denying it's a confident stance, but some are more cautious. Showing his trademark candour, Crytek co-founder Avni Yerli goes further than just admitting there might be another recession on the way - he sets a date for it.

"2015, it will happen. End of 2014, 2015 it will happen."

He is also less certain that games exist in a safe realm. While he agrees that games, as part of the entertainment industry, may not feel immediate effects in the way other businesses do, he argues that it is creativity and innovation that suffer, not just graphs and share prices.

"I think what will be at a disadvantage in this case is that you won't see innovative new games in this cycle or a year later, because nothing gets started because people, publishers, become more risk aware, and do not spend on new games or new IPs. They go for sequels, and very easy sequels."

You won't see innovative new games in this cycle or a year later, nothing gets started because people, publishers, become more risk aware.

Avni Yerli, Crytek

During the last recession, Crytek stepped in to save TimeSplitters developer Free Radical Design after the company went into administration. The UK developer then became Crytek UK, receiving a reported £50 million investment.

"It was not something which had a negative affect on us," says Yerli of that economic downturn. "I mean we had our games in development, we had our technology in development, we licensed our technology out. What we realised when we talk to licensees is that they're all working on new sequels, but not new IPs."

Sony Computer Entertainment, as a hardware manufacturer, publisher and developer, has both a unique perspective and the most tumultuous recent financial history of any of the companies we spoke with. Hit hard by the April hacking attacks that shut down the online store and multiplayer services - not to mention the earthquake in Japan - its understandable that Sony is braced for another dip.

Sony Worldwide Studios' Michael Denny is a master of the interview, but on the mention of another economic downturn his brow creases for a moment. But he too believes the industry occupies a special place in consumers lives, even when they're struggling.

"In terms of gaming in the recession I think nothing is recession proof. I don't believe that, but as an entertainment medium I think we are really good value, and I think its one of those things that consumers and game fans are reticent to give up."

Nothing is recession proof, but as an entertainment medium I think we are really good value, and it's one of those things that consumers are reticent to give up.

Michael Denny, Sony

"So when times are economically hard we have to try harder, we have to make sure our products stay relevant, we have to make sure we're pricing things right. But most of all we have to keep producing innovative new experiences, then people will still want them."

Unlike Yerli, Denny believes that, rather than causing in a wave of sequels and remakes, recessions can actually stimulate creativity among developers.

"Clearly the economic conditions have been quite dramatic, the credit crunch last time and maybe what we're feeling at the moment. But it's interesting, talking from perhaps how it affected us in Worldwide Studios, is that to some degree we all look harder and tighten our belts, but sometimes in those times of adversity even more innovative products can grow out of it. People sometimes perhaps try even harder, they know what's required to spark interest and keep interest in gaming."