1. More companies are switching to digital distribution. Valve, a developer whose games Half-Life and Counter Strike make up a significant portion of video game sales, has recently surpassed its shipped sales by its download distribution via steam. EA and other developers are following suite.

2. A small, but increasing, percentage of people are pirating video games.

The combination of these two factors means that video game consumption is probably constant, or increased, simply, companies like Gamestop are seeing a small share of the pie. This is a trend that is very likely to continue and worsen, regardless of the recession.