The gaming industry is no longer recession proof. Sony’s sales for the quarter are down 37% from the year before, Nintendo’s sales are down 40%. Overall, game sales are down 41% compared to June of last year. “The impact of the economy is clearly reflected in the sales numbers,” said NPD analyst Anita Frazier. But if game companies are having trouble selling the volume of titles they’d like, then why aren’t they adjusting prices to increase sales? Lets take a look at the who, and why.

Who: Sony

What: Sony sold 1.6 million PSPs last quarter, compared to 3.7 million units during that quarter last year. This coming holiday season, Sony is set to release the new PSP Go for $250. That’s far more expensive than the original PSP, which cost $170.

Why: So why is Sony releasing such an expensive product in such economic hard times? Despite the downturn, Sony is pricing its products for the long cycle. As Sony Computer Entertainment America’s CEO Jack Tretton told me, “You have to look at things over a long-term period. It’s extremely difficult to do in our industry, and even more difficult to do in this economy. … It’s a formula that is successful and is one that we shouldn’t succumb to the pressure and deviate from.”

Read the full article at Fast Company.