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?

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It’s clear publishers like Electronic Arts hate to take risks on video games. They’re not alone in their opinion, look how many sequels we’ve got for the holidays compared to new creative titles like Little Big Planet, or how publishers push out sequels to hot titles until we can’t take it anymore; how many Guitar Hero titles will arrive before we scream “enough!”?

Speaking to rocking music, Electronic Arts may pass on the chance to pickup Brütal Legend, a title originally being published by Vivendi Games prior to the Activision Blizzard merger. The title was left without a home when the merger was complete along with other dropped titles.

Why would EA not take the chance with the game? Risk factor. Brütal Legend is a game title developed by Double Fine Productions and has been designed by Tim Schafer, with past games like Monkey Island, NES’s Maniac Mansion and the fantastic title Full Throttle. With such sweet titles under his belt, why wouldn’t a game designed by Tim Schafer be a hot commodity in the market?

The game brings music and action adventure together in a creative twist. No, it’s not Rock Band and it’s not Guitar Hero, thus, MTV and Activision don’t care about it. However, the game plot and storyline are music related and, supposedly, the main character is voiced by Jack Black, vocalist of Tenacious D and popular actor (School of Rock anyone!?)

Creator Tim Schafer has said that roadies have long fascinated him. Schafer originally thought of the game’s title over fifteen years ago. “I was riding a bus, thinking about a game that would be the complete opposite of what we were working on, The Secret of Monkey Island. And Brütal Legend leapt into my head. (wikipedia)

It appears a series of publishers have walked away from Brütal Legend without much hesitation. “I have seen it,” EA CEO John Riccitiello told Gamasutra. “I am well aware of what the game is. It’s a very significant creative risk.” (joystiq)

Where would the game be without significant creative risks? In many ways, World of Warcraft was a risk… it’s only got 9 million or more players.

World of Warcraft, Early November Release RumorWorld of Warcraft, Early November Release Rumor

There is a new rumor running around showing off some 7-eleven computer systems which list World of Warcraft: Wrath of the Lich King showing a “tentative” release date of November 4th, 2008. The suggested retail price is $39.99 and this source also claims a “midnight” release (again) which, at this point, should be common sense.

Their Burning Crusade content had a great turn out when we went to pick it up at BestBuy’s midnight release, this expansion should be no less. An early November release would be great for those planning to stand in line during the late night rather than sticking it out in the cold winter nights here in New England.

This is just a rumor, but many of the rumors involving employees covertly sliding out photos or paperwork on games at retail stores tend to be closer to the mark than not.

Anyone planning on waiting in the line if this turns out to be true?

(Thanks, 1up)

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