Despite the recession, many businesses are still hesitant to cut IT budgets and are investing in new technology. However, the budget constraints are becoming more severe. In addition, as the economy grows more competitive, companies are recognizing that they need to be more selective about their investment in IT, and more focused on developing solutions that can be used to compete in the market.
Video game sales increased 43 percent last year
Despite the worst of the recession, the video game industry continued to see rapid growth. During the last decade, it has become one of the fastest growing industries in the United States. This year, it is estimated that the industry will grow by nearly $21 billion, or double digits.techradarweb.com
In the past decade, the industry has come a long way from the clunky, low-tech games of the early 1990s. It has become more family-friendly, and companies are tailoring their games to suit the needs of a wider audience.
In the United States, the games market is dominated by a few game systems. Sony's Playstation 3 and Microsoft's X-Box 360 account for a large portion of the total. In addition, the Wii has changed the face of video gaming. Nintendo's aggressive mass-market strategy has increased the size of the video game market.
However, the recession could affect the video game industry in the future. It is possible that people will cut their entertainment budgets, and that new gamers will stop buying games. Traditionally, the entertainment industry tends to decline during recessions.
The video game industry may be able to avoid the recession, but the quality of the games will likely decrease. In fact, the game crash of 1983 was attributed to poor quality games.
In the past, games that were violent had a small market share. This trend is changing as the industry is moving toward more realism. Many games look like they were made for movies.
The video game industry is largely recession-proof, but it may face a downturn later this year. Economists haven't officially called the current downturn a recession, but some are predicting that it will end in 2023.
In the past, recessions have been associated with a loss of consumer confidence. In 2008, the video game industry grew by 43 percent, while the overall economy grew by only 3 percent. The video game industry will continue to grow in 2009 and 2010, but will fall by 4 to 6 percent in a recession.
Two dividend-paying video game stocks look alluring amid the market's 2022 drop. They should be able to withstand high inflation.
Cybersecurity is ripe for the taking
Despite the current uncertainty surrounding the economy, cybersecurity is still a hot topic. In fact, there is a thriving cybersecurity ecosystem that's ripe for acquisition and exit, both at the same time. This is largely due to the growing threat of nation-state-backed actors. Using social engineering techniques, bad actors are able to masquerade as legitimate individuals with astonishing accuracy.
According to Cybersecurity Ventures, the annual cost of cybercrime will reach $10.5 trillion by 2025. The top security control that will protect your business from hackers is endpoint security.
For the last two years, the cybersecurity industry has been awash in activity. During this period, more than 700,000 open cybersecurity jobs have been created, including nearly a third of those in the U.S. Some investors expect a bear market to hit the cybersecurity sector, but there are some good reasons to be optimistic.
For one, cyber security is now an integral part of the enterprise software industry. This is because companies cannot rely on voluntary security solutions to protect their infrastructure. Instead, they must invest in a layered approach. This includes technology investments, as well as human factors. The human element is an important component of operational resilience, and more companies are going to focus on training employees to become security professionals.
A number of major tech firms are making cybersecurity acquisitions. Recently, Palo Alto Networks Inc. made a move that may be considered a watershed moment in the history of cyber security. In a recent round, it purchased a cybersecurity company called ZScaler. The company's stock has risen by more than 24% since its first day of trading on June 10.
Aside from the economic recession, other reasons to be optimistic about the cybersecurity industry include the continued advancement of biometric identity verification technology. This will allow businesses across sectors to adopt a passwordless authentication process.
The Internet of Things (IoT) is also predicted to grow by 30 billion connections by 2025. The resulting need for secure data management is also on the rise. Combined with the latest technological advances, these developments make the cybersecurity industry a prime candidate for investment.
Disruptors will strengthen their long-term strategic positions
Despite the recent recession, disruptive companies continue to outperform their peers in sales growth. And the recession presents a unique opportunity for companies to gain market share. While predicting the next recession is difficult, there are a few simple rules that can help leaders reallocate resources.
Companies should invest in technology, growth opportunities, and acquisitions. In addition to accelerating expansion, these strategies can help companies strengthen their long-term strategic positions during a technology recession.
Digital technologies are disrupting businesses in new and unexpected ways. These new digital tools offer companies more cost-effective, customer-focused opportunities. They enable companies to move faster and simplify their businesses. And they allow companies to test messages in a high-velocity fashion.
During the recent recession, companies that ranked among the eventual winners systematically moved to capture new opportunities before the recession hit. The companies that ranked among the lagging companies waited until the storm blew over before they took action. The lagging companies bought the wrong assets, sat on promising markets, and missed out on product innovation.
These lagging companies finally took action too late. The companies that ranked among the eventual winners turned hard toward the apex of the curve and refocused on cost transformation. The acquirers bought new customer segments and new product lines at low prices. The acquirers also exited businesses that did not fit into the strategic future.
Companies that prepare now for a technology recession can accelerate expansion and gain market share. They can also use cost management tools to prepare for the next recession. The specific actions they take depend on their industry and their strategic position.
For example, in the automotive industry, a shift to shared mobility services could eat up a significant portion of the industry's economics in the next 6-8 years. Other sectors are attempting to weather the current slump with similar strategies. In addition to new collaborative commerce, companies can now use robotic process automation and augmented reality tools to cut maintenance costs.
In the financial sector, the biggest bank in the US, JPMorgan Chase, emerged from the last financial crisis with a "fortress balance sheet." Its diversification efforts have helped it survive recent pandemics. But the company is also facing increased financial and political risks.