I'm bullish about our growth prospects as an industry and as Microsoft
Microsoft Corp is not seeing any weakness in its Xbox business despite the soft US economy, and expects the company and the rest of the video gaming industry to weather the downturn in consumer spending.
Don Mattrick, a senior vice-president at Microsoft's entertainment and device division, said video games are still a bright spot for consumer spending at retailers. "That would have been a more challenging dynamic if it was a brand new box shipping for the first time this holiday," Mattrick said.
"Consumer spending is still going to exist, and people are going to prioritise, but I'm bullish about our growth prospects as an industry and as Microsoft."
Aussies shun credit
Australian credit card debt levels have posted their slowest annual growth in 14 years as higher interest rates deter consumers from opening their wallets. Average plastic card debt rose by 4.1 per cent, or A$124, to $3115 in the year to May, Reserve Bank of Australia figures have shown. This was the slowest rolling average annual increase since the RBA started keeping records in 1994.
UK water hike looms
One in ten households in England and Wales face "water poverty" under plans to install meters in every British home. Millions of households, already suffering from rising food and fuel costs, may be forced to pay as much as £200 extra a year, according to The Consumer Council for Water.
Currently water companies can introduce "pay as you flow" meters in areas that are at a high risk of drought. The government has long-term plans to install them into other areas by 2030.
Ministers say that droughts will become increasingly likely unless people start to use less water, and that they will be more likely to do so if they pay for what they use.
High streets empty
Consumers are abandoning high street shops and converting in increasing numbers to e-commerce, preferring to do their shopping online in the hope of finding a bargain.
Out of every £1 spent by British shoppers, 17p is now going to online retailers.
A new survey shows £26.5bn was spent on the internet in the first six months of this year — up 38 per cent on 2007. IMRG-Capgemini conducted the study, which suggests online retail is weathering the economic downturn more successfully than the high street, where cash-strapped consumers are hitting the shops less regularly, staying local rather than venturing to out-of-town malls, and trading down to cheaper goods.
"While online retail is not immune to the credit crunch, it is showing greater resilience than the high street,' said Mike Petevinos, of IMRG Capgemini.
"We predict between 30 per cent and 50 per cent of all retail will be online in the next five years." Shoppers are being driven online in the hunt for lower prices as they try to stretch their budgets.
James Roper, chief executive and founder of IMRG, which represents online retailers, said: "Tight budgets and poor weather keep people at home where they can shop online for bargains. "Clothing and footwear sales were the biggest losers in physical stores in June.
"Online, however, they were big winners. Clothing sales were up 32 per cent, lingerie sales rose by 37 per cent and footwear by 38 per cent."
The survey suggests online retailers at the bottom and top of the market are performing best. Visits to the Primark and Harrods websites, for instance, are up 12 per cent and 14 per cent on a year ago, while visits to mid-market sites are down 6 per cent.
Ever thought of working abroad see TNT Magazine's in depth guides to working in Australia, working in USA or working in Dubai
Where does your dosh go?
Nigel Simpson
Job: Teacher
From: Melbourne, Australia
Lives: Islington
Age: 28
"I spend most of my cash on travelling. I stick to a budget when I'm in London, although it's hard given how expensive rent is. But I basically try to save up for two or three quality trips each year — the big perk of my job is being able to get away regularly. At the moment, I'm saving for a trip to Croatia. I want to go sailing along the coast, but that's not cheap, so I'm watching every penny. Other than that, I just spend my cash on feeding and clothing myself, and paying bills. Buying a car doesn't make sense, so I use quite a bit of public transport. That eats up a bit of cash, but you don't notice it as much."
Forget about the minibar, grotty motels are fine — you probably like the squishy bed and the buzzing TV set. But for the super-rich there are these absurdly pricey options:
» The Plaza Hotel, New York — the Presidential Suite goes for US$15,000 a night. Its walls are covered in silk and it comes with a 2000-bottle wine cellar.
» The Martinez Hotel, Cannes — for $18,000 a night, you can enjoy postcard views of the Côte d'Azur. You'll also get a limousine and your own private butler.
» President Wilson Hotel, Geneva — enter via the private elevator and luxuriate behind bulletproof windows and doors. All for just $23,000 a night.
» The Atlantis, the Bahamas — the most expensive suite in the world is perched on top of a bridge connecting two buildings. How much? $25,000 a night.
How do you manage your money? Share your tips (and weaknesses) by emailing realitycheck@tntmagazine.com
