Quoted from Richthofen:Bubbles usually require a catalyst to burst. I know that because pinball prices stayed the same or increased during the last recession that people think its a recession-proof hobby, but I would disagree.
The hobby has expanded with many many new collectors, which is great! That expansion coincided with the last recession, which kept the prices afloat. I think the timing of the new collectors entering the hobby was mostly coincidence. But not all collectors have the same financial profile. There's people with large net worths who get every LE. And then there's people buying games on the margins with bonus money or a small stock market win or something.
I believe we're overdue for another business cycle contraction/recession. When that happen the wealthiest will still buy games. But the collectors who need to raise money due to a job loss or business slowdown will not be buying and probably be selling. The decreased demand combined with the expanded supply of new games and new manufacturers will lead to lower prices. Because the total collector count is still well above what it would be 10 or 15 years ago prices won't go back to the 'good old days' that I missed out on. But I think we'll see a correction in prices. If I had to put a value on it I would say 30%. That's what the housing market fell. I conflate the two because pinball and houses are both illiquid and require time and effort to sell, unlike stocks.
Other factors
I also wonder whether pinball as a hobby could be a trend or 'fad' for some. Will the new collectors who entered the hobby 5 years ago or less be collectors for life?
Pinball prices are regional in some sense since its reasonably a pain to ship a game. and most games do not change hands on eBay so prices paid are opaque. Will a price decline hit some areas first? Since I think the next recession will come out of California and the second tech bubble, I would imagine it might be harder to move games there and could be the start of the price decrease. (Also helps that this is where the games are most expensive in the US anyways).
Excellent post.
I'm an avid collector as you guys probably know. I'm not a Jonny come lately but my collection (5 pins) was stagnant and not being played a lot. I had TOTAN TZ IJ CFTBL and PotC in my collection in 2012. But I was not in to the hobby as much any more.
At that time I was thinking of exiting the hobby or scaling back to just 1-2 pins.
BUT at this time when I got *more* interested there had been an upswing in the hobby that past few years, IM and Tron had been out just shortly before. XM (was just coming out and had a lot of buzz) ACDC had just come out and WoZ already had its following although we didn't know how long it was going to be delayed.
Followed by good pins like Met, TWD, ST, MM, TH, and a dozen other pins in the last 4 years.
My collection added in this order
XMLE
Tron
ACDC premium
SM
STLE
IMVE
TSPP
MET
TWD
LOTR
So I was partly responsible for the surge but at the same time cost, space, and time (ability to play 9+ pins) is working against me. I'll still get a few more pins maybe one a year but not like 3 every year.
Not saying I'm less into the hobby but my limit is getting closer so I'm less likely to buy anything new. 4 years ago I was prime and ready for a surge. Now I'm more in a slow burn as far as new pins.
Could be other collectors are in my predicament too.