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 566: NBA 2K20 Is AwfulEpisode 566: NBA 2K20 Is Awful

Jonah goes off on a virulent rant about NBA 2K20 and the decline of the series as a whole, while offering milder criticism of Star Wars Jedi: Fallen Order. There’s no Gaming Flashbacks, but plenty of news.

The news items include:

  • Another leak points to new Tony Hawk game arriving later this year
  • Horizon Zero Dawn is coming to PC this summer
  • 2K returns to making NFL video games, but not a Madden competitor

Let us know what you think.

Episode 582: Is the Lockhart Real?Episode 582: Is the Lockhart Real?

Well, yes, it is real, just unannounced. The Xbox Series S is probably the worst kept secret at this point. In addition to the rumors, there’s some other interesting stuff going on pre-Gamescom.

The news includes:

  • EA Access page is now live on Steam
  • Injustice 3, featuring the Watchmen, has been seemingly teased
  • Xbox Series S name pops up on Microsoft’s next-gen controller packaging

Let us know what you think.

Xbox 360 Silver Accounts, Free XBL Cross-Platform GamingXbox 360 Silver Accounts, Free XBL Cross-Platform Gaming

Microsoft has announced they’ll be giving Xbox Live silver accounts access to play some multi-player cross-platform games for free until the fall update. Recently, Microsoft announced free online play with Games for Windows titles, effectively giving PC gamers “gold accounts” to play online.

Most people agree the move to give gold subscriptions to PC gamers was done because PC gamers don’t care to play Games for Windows games online if they have to pay for it. The culture of PC gaming is much different than console gaming on XBL, gamers expect the online experience at no cost; they’re already paying an ISP for network access, paying for a match-making system with a yearly subscription is not desired.

Console gamers don’t have a choice, buying the 360 experience arrives with simple to play games (no drivers, no installs) but limited online choices: pay or go away. Now, silver members will get a little taste of network play, along side PC gamers in the cross-platform Games for Windows titles.

“Supported cross-platform titles include Universe at War, Shadowrun, and Lost Planet: Colonies Edition.” (gamespot)

We question the intention here… is this as a good faith move or are they wetting people’s appitite for XBL so they’ll want to upgrade to gold in the fall? Or, maybe there are some logistical reasons to doing this in the Xbox Live infrastructure to prepare for upgrades where making it free solves a few of their internal upgrade paths and, as a side effect, gives gamers some games to play.

Of course, we’ve seen few people playing Shadowrun or Lost Planet lately. Maybe this will re-popularize a few older titles as well.