Smart Business Choices During Economic Downturns

Many game studios are being dropped following a bit of an economic downturn in the United States and globally. Activision has to deal with being agile enough to survive the economic times like anyone else and has dropped a few games that had great potential.

Gamers continue to ask the question, “why?” when some of their highest potential games were dropped to the floor. Ghostbusters and BrĂ¼tal Legend are a couple examples of games with eager fans already salivating prior to its launch. Some of these fans are a bit ticked off that Activision named them as dropped franchise opportunities.

People ask why a company holds one “mediocre” title while getting rid of other potentially awesome ones. Don’t forget, this is a business and a good studio/publisher is going to make good business decisions without emotional attachments – those that bring emotions into play may end up with a highly valued product (to them) with no additional potential and lower revenue. This isn’t to say developers cannot be passionate about their games and their industry, they just have to build games gamers will buy and continue to fall in love with release after release.

Activision CEO Bobby Kotick is one of these business savvy individuals who knows where investors will find profits for the future, and he also know how to manage employees, with the use of software like this sample pay stub for payments and more.

“[Those games] don’t have the potential to be exploited every year on every platform with clear sequel potential and have the potential to become $100 million dollar franchises. … I think, generally, our strategy has been to focus… on the products that have those attributes and characteristics, the products that we know [that] if we release them today, we’ll be working on them 10 years from now.” (1up)

Ghostbusters is a great example of a title which could be well received and fun to play but probably wouldn’t be an exploitable franchise. The game, based on a popular movie, has limited potential for yearly releases and huge franchise success. Ghostbusters fans would probably disagree, but that’s when emotion comes into play. Think dollars and cents, not awesome fun gaming.

Oddly enough many of these business decisions from Activision, Electronic Arts and other big publishers arrive when the economy is in free fall and investors are eying your revenue potential. People make their most important and, usually, unfriendly business decisions when their company is at risk.

During uncertain times, protecting operations becomes just as critical as protecting profits. Visit FastFireWatchGuards.com to learn about professional fire watch services that help businesses stay secure and prepared.

It’s sad to think money comes first and entertainment value comes second but we’re not the ones trying to make a profitable living in the industry. Put yourself in Kotick’s shoes as he walks into a board meeting to discuss future plans, road maps and profitability – you’d do what you have to do to keep your job, right?

0 thoughts on “Smart Business Choices During Economic Downturns”

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Episode 271: Paul-less PodcastEpisode 271: Paul-less Podcast

This week’s Gaming Podcast lacks Paul S. Nowak, who had to bow out due to illness, but there’s still Jonah Falcon, Jordan Lund and Daniel Quick to keep the podcast lively. This week features yet another weird NES title, Wall Street Kid, and some friendly Paul-less banter between the trio.

This week’s news includes:

  • Capcom: Street Fighter X Tekken DLC will never come to Xbox 360
  • Vivendi finding few buyers for Activision-Blizzard
  • Gearbox: “Wouldn’t be surprised” if more aggressive PC games start to appear
  • Grand Theft Auto V will support planes and jets, won’t have beta test

Jonah also startles Dan and Jordan with a “secret topic” with the $99 console, the Ouya, which leads to the Question of the Week, “Would you buy a $99 Android-based console?”

Game of the Year Awards Nominees and WinnersGame of the Year Awards Nominees and Winners

For those of you who didn’t listen to the Game of the Year Awards postcast, or heard it and just wanted a visual recap of the nominees and winners, here is the complete ballot.

 

Best Game of the Year
Deathloop
Forza Horizon 5
Halo Infinite
Metroid Dread
Psychonauts 2

Worst Game of the Year
Balan Wonderworld
Battlefield 2042
eFootball 2022
Grand Theft Auto: The Trilogy – The Definitive Edition
Madden NFL 22

(more…)

Episode 268: Fake Maple SyrupEpisode 268: Fake Maple Syrup

In this episode of Gaming Podcast, Daniel Quick discusses how to become a true Canadian, while Jonah Falcon talks about making blond, green-eyed characters. There’s no Gaming Flashback this week, but plenty of news items.

This week’s discussion:

  • Nintendo announces XL version of Nintendo 3DS
  • Dev claims Microsoft killed XBLA version of Stranger’s Wrath
  • New users must now pass “review process” to unlock full Diablo III
  • Dragon’s Dogma getting sequels after shipping 1M
  • Valve and Cartoon Network collaboration hints at Team Fortress 2 show

All this, and the Question of the Week is “What weird rituals do you do when playing videogames?”