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 Brütal 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 709: Eat PikachuEpisode 709: Eat Pikachu

This week’s episode has the entire podcast crew reacting to Palworld. It’s priceless. They also discuss Alan Wake is coming to Dead by Daylight later this month and a Tetris prodigy triggering a “true killscreen” in record-setting run.

The news includes:

  • Bethesda will finally show off Indiana Jones gameplay at the Developer Direct showcase
  • Apple Vision Pro available in the U.S. on February 2
  • Palworld‘s Pokémon-with-guns adventure enters early access next week

Let us know what you think.

Episode 696: Nintendo Directs, PlayStation States, Microsoft Lifts the KimonoEpisode 696: Nintendo Directs, PlayStation States, Microsoft Lifts the Kimono

Plenty to talk about, as the guys discuss Cities Skylines 2, The Elder Scrolls 6, Phil Spencer’s old emails, the Steam Deck 2 and The Division 3. However, the main focus of discussion lies in the Nintendo Direct, PlayStation State of Play and Xbox Tokyo Game Show conference and what to expect in the future.

The news otherwise features:

  • Xbox Series X disc-Less design leaks online
  • Fallout 3 remaster leads colossal Microsoft leak of unannounced games

Let us know what you think.

Xbox 360 Fall Update Too Big For Diskless UsersXbox 360 Fall Update Too Big For Diskless Users

If you’ve got an Xbox 360 arcade edition or an older console without a hard disk, you’ll want to clear up at least 128MB of your flash card before powering on your console after the fall update hits. Wait, you’re flash disk isn’t 128MB in size? Oh oh.

Latest reports are stating that consumers that own a 360 without a hard disk, albeit a small group, will not be able to simply install the fall update as the rest of us because they don’t have enough disk capacity. What is Microsoft doing about that? Microsoft’s Larry Hryb says saying they will be “offering storage solutions” for such customers.

We’re wondering, are they going to actually ship people free hard disks? Perhaps a coupon for a larger flash card? Interesting indeed!

“The new Xbox experience will require 128MB of free space. A hard drive is recommended for the optimal experience, to take advantage of some new features, and to be able to enjoy the great movies, TV shows and games available on Xbox LIVE. While we expect the majority of consumers to download the New Xbox Experience without a problem, a small percentage of Xbox 360 owners do not have enough memory to accommodate the update. To help ensure all Xbox LIVE members are able to download the New Xbox Experience and enjoy its new features, Microsoft will be offering storage solutions to the Xbox LIVE community. We are not sharing details of this offering yet. Be sure to check xbox.com for more details in the coming weeks.” (1up)

It was really only a matter of time before the Xbox 360 out grew the fact that they allow consumers to roll with a diskless console. No other console limits you by having both a disk and diskless option; we know why they did it, but now it would seem their having some growing pains.

No doubt, the next Xbox 360 console will come complete with hard disk! Hopefully you were wise and got the bigger console complete with disk.