The global economic recession has forced most companies regardless of their industry to take a hard look at expenses. Some companies big and small have found that continuing to operate was simply impossible.

The view game industry is traditionally one of the strongest in the technology sector as more and more consumers take up video games. Reuters reports that game publishers came together this week to report an optimistic outlook for the industry despite the poor economy.

EA, Activision, and THQ say that they all plan to focus on mostly blockbuster titles and franchises that have been best sellers in past years. Out of the three major game developers, only Activision was able to turn a profit in the last quarterly results posted.

According to estimates by research firm NPD, spending on video games in America dropped 17% in April compared to previous months.

THQ CEO Brian Farrell told Reuters, "Our actual net development budget has been significantly reduced this year to $120 million ... but its focus is on a few of these quality titles."

Industry executives see hope for the future of gaming though with more and more people starting to play games, the market is expanding beyond the traditionally male user base to include women and older people.

The industry is optimistic because the poor economy has consumers looking for cheaper entertainment, and some people are finding that buying even the most expensive video games is cheaper than taking a vacation or other forms of entertainment. Some of the most expensive video games like Tony Hawk Ride sell for over $100, though most games are around $50-$60.

Analyst David Ernst from Hudson Square research predicts that video game sales for the fiscal year that ended in March will be about $29 billion. That number is larger than the predicted revenue generated by the movie industry at $27 billion.

Publishers are also hoping that major console makers will cut prices this year. An increase in console sales means an increase in game sales as well.

THQ CEO Brian Farrell said, "We love those price wars. I wouldn't rule out that if Sony cuts, Microsoft and Nintendo may respond. When those guys have their hardware wars, we supply the ammunition."