Videogame industry hit by economy?

It’s been conventional wisdom as of late that the videogame industry will not really be hit by a downward-trending economy, since people always seek in-home entertainment in a downturn. However, I was surprised by some stats from an industry dinner I attended a few nights ago. There were probably 45 people at the dinner, but at my table of nine, only three people were gainfully employed. Either their company had recently gone out of business due to investment challenges, they had lost a game contract with a publisher, or they had become a part of corporate downsizing.
It may yet be that we will see a strong holiday of sales for the game industry. But the people making the games don’t seem to be holding up quite so well.