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 750: Three QuartersEpisode 750: Three Quarters


[Reupload]
Sorry for the audio issues in this episode. In this episode, the guys discuss Ubisoft’s defense against The Crew lawsuit (you don’t actually own your games), Bowser telling Nintendo fans “Don’t want the Switch 2? Just buy a Switch 1!”, Marathon won’t require a PlayStation Network account on PC and Xbox, and Endless Legend 2 comes to Steam Early Access in summer 2025.

The news includes:

  • Former Blizzard president says ‘I’m not sure where Diablo is going’
  • Xbox announces June showcase event
  • PlayStation legal issue delays Vampire Survivors cross-save on PS4 and PS5

Let us know what you think.

Episode 355: E3 Swag Bag Part 3Episode 355: E3 Swag Bag Part 3

This is the final week of the E3 Swag Bag giveaway, which includes a The Sims 4 bag, a The Sims 4 T-shirt, The Sims 4 sunglasses, and some other goodies like a Dragon Age: Inquisition T-shirt, a Farming Simulation 2014 cow, and so on. Paul is unavailable this week but Jordan’s wife Jennifer guest hosts, with the famed Kingdom Hearts being the Gaming Flashback.

This episode also includes the following news items:

  • Report: PS Vita no longer available at major retailers
  • No women allowed at upcoming Hearthstone tournament
  • Lindsay Lohan files suit over GTA V allegedly using her likeness
  • Sources: Crytek UK’s staff no longer going to work
  • Riot closing League Of Legends’ public chat

And once again, the Question of the Week: “What was your biggest takeaway from E3?”

Episode 455: It’s Been a Fun Ten YearsEpisode 455: It’s Been a Fun Ten Years

Back in 2007, Derrick and Jennifer Schommer, along with Don Dunn started the Gaming Podcast, with their unique sense of humor and take on the biz of video games (as well as starting a popular World of Warcraft guild.) The trio would move on, with Derrick starting his Everyday Drinkers podcast and Common Man Cocktails site. Jonah Falcon took over, and merged it with the Videogame Roundtable. In that time, we’ve had hosts including Jordan Lund, Paul S. Nowak, Dan Quick, Scott Dirk and most lately, the inestimable T.J. Denzer. We’ve also had guest hosts including Hilary Goldstein and the late Andrew Yoon.

This episode celebrates the past 10 years, including an intro by Dan Quick and Paul S. Nowak joining this week’s episode, to discuss this news:

  • ‘Father of Pac-Man‘ Masaya Nakamura dies at 91
  • Nintendo is gearing up for more mobile games, plans 2-3 per year
  • $500 million awarded to ZeniMax in lawsuit over the Oculus Rift
  • Asheron’s Call comes to a quiet end after 17 years

Let us know how long you’ve followed the podcast for!