Activision Blizzard CEO Bobby Kotick wasn't kidding when he told me that the consumer still hasn't recovered.
I spoke to Kotick in an exclusive interview — he said Activision Blizzard's more modest projections for the current quarter were due to the timing of game releases.
That lack of new games is one factor behind the 22 percent drop in game sales in April from a year ago.
The fact that there are so many free options online can't be helping, especially when it comes to sales of pricier consoles. Console sales dropped 37 percent to $249 million from a year earlier.
A number of factors are putting pressure on the games industry — a $60 game is a major investment, especially when there are a slew of online games offered for free.
Plus, as we saw with April's sales numbers, the business is incredibly hit-driven.
Without a huge launch gamers lose interest, and this is particularly true when wallets are tight.
The real question is how much we're seeing a sea-change away from the traditional video game model, and towards free online games.