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 371: This Podcast Is ExtremeEpisode 371: This Podcast Is Extreme

This week is another short one as the news is pretty light. However, there is another Gaming History as The Super Mario Bros. Super Show! is examined.

This week’s news includes:

  • Destiny‘s PVP mode now breaks up teams if they’re too good
  • Xbox One sold over 720K Black Friday week in the US
  • Godzilla The Game heading to North America this Summer
  • Street Fighter V revealed as a PS4, PC exclusive (from GameSpot)

The Question of the Week: “What is your favorite giant monster?”

PopCap’s Peggle Hits Retail ShelvesPopCap’s Peggle Hits Retail Shelves

Since the release of Peggle on February 2007, gamers around the world have caught on to the addictive casual game. Now those that didn’t download Peggle on Steam, Popcap.com or other electronic download site can buy at packed boxed version in retail outlets!

Peggle hits retail stores and the world will never be the same! You can download it for your ipod, on your PC and on your Macintosh but never before could you purchase it in a local store. Although, it seems, boxed casual games are the rarity, not the norm, the more outlets a developer like PopCap gets the better.

MSNBC listed Peggle in the top five most addicting games of all times, PC gamers couldn’t get enough and, eventually, Xbox Live gamers will have that same experience. If you’ve never played Peggle I suggest you run out and buy it when it arrives in retail stores… or just buy it online the way you could do for the last year and some change…

(more…)

Midway Layoffs, Criminal CancelledMidway Layoffs, Criminal Cancelled

Midway’s been around the industry for years, has decided to lay off up to 90 people and cut the Criminal project from their lineup. This is a long term plan of cost reduction by the board of directors to get down costs and keep the company running smoothly.

Their plan seems to be to develop games intelligently, by costing out each project and building what’s needed to make the company profitable without excessive cost. A company always runs best when it’s doing it wisely and looking to reduce overhead, unfortunately a company in a bit of trouble has to let go of employees to get their.

While this was a very difficult decision, we feel it was the right thing to do for the future of Midway,” said Matt Booty, interim CEO and president of Midway Games Inc.. “We view every game as an investment that must meet certain standards for quality, scheduling, and profitability. Midway remains committed to producing the highest quality entertainment, as evidenced by our strong holiday line-up which includes TNA iMPACT!, Blitz: The League II, and Mortal Kombat vs. DC Universe starring a team of MK characters and some of the most recognizable DC Comics personalities such as Batman, The Joker, and Superman.” (kotaku)

Hopefully this allows them some breathing room to get out of this sticky situation, we hate to see old names go down in history as failed.