The game development industry is not recession-proof, but the industry may weather a recession better than some others.

During a recession, people tend to cut discretionary spending, and video games are no exception.

Some of the biggest players in the industry, including Nintendo, Microsoft, and Sony, have reported declining revenue .

Prices for VR hardware are going up, which could make it harder for consumers to justify purchasing these products during a recession.

Players may switch from premium titles to free-to-play games during a recession, which could affect the premium games revenue.

Game development companies like Unity and Niantic have laid off employees as a cost-cutting measure.

Video game companies are being more selective with new game development and slowing hiring in some cases.

Tencent, one of the largest video game companies in the world, reported its first-ever revenue drop.

Investors are more likely to bet on known entities, such as proven franchises and game developers with strong track records, during a recession.

Riot Games has raised the price of its in-game currency by roughly 10 percent globally, citing factors like inflation and currency fluctuations.

Despite these challenges, the gaming industry continues to experience significant growth. While game development may not be entirely recession-proof, it is likely to weather economic downturns with relative ease