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.

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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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Titanfall 2 announced by Electronic ArtsTitanfall 2 announced by Electronic Arts

Electronic Arts has officially announced Titanfall 2, releasing a teaser trailer showing a Titan approaching a drop pod and unleashing a sword, bringing the series closer to Pacific Rim.

The publisher was pretty brief in its press release, simply announcing:

“From Respawn Entertainment, the studio that brought you the award-winning Titanfall, comes Titanfall 2. Check out the teaser trailer at Titanfall.com and get a glimpse of what awaits you on the Frontier.

Be sure to mark your calendars for the worldwide debut of Titanfall 2 at 1pm PT on Sunday, June 12 at EA PLAY.”

We’ll be at E3 2016, so when the show comes around, we’ll have all the info for you. It must be noted that EA won’t be on the show floor itself, however.

Xbox 360, PS3 and Wii: Who’s Winning And HowXbox 360, PS3 and Wii: Who’s Winning And How

People see facts and figures constantly and brush them off as, well, facts and figures. But, when people see charts and graphs they “oooh” and “aaaah” over them because the visualization is easy to understand. Now, thanks to the NPD Group and Deutsche Bank, people are seeing some pretty graphs about the console battle. These show just how well the race is going on all fronts of the war.

Hardware Sales chart, via gamedaily.com

Although the data is fairly small the colors show it all, the Wii crossed over the Xbox 360 numbers in unit sales and hasn’t stopped since the launch. Here we are, on the third holiday season since the Wii launch, and people still cannot find them in stores. Shortage? Doubtful. Considering the massive sales numbers and the fact that they did take the 360 in numbers it seems the supply just can’t meet the over-the-top demands, but why is the demand so high for the little Nintendo bundle of joy? People just can’t get enough Wii.

The Xbox 360 has much to brag about as well, they’re not first in the race but their nearest next-generation graphic console, the PlayStation 3, isn’t even close. The chart shows them both rising in much the same way, with the same “pops” along the sales chart but in a completely different scale. Since Microsoft doesn’t want to consider Wii a competitor, they’re clearly winning the war in their eyes.

Oddly enough, one of the big pops in Xbox 360 sales where around the PS3 launch. Perhaps these consumers were waiting for both consoles to launch before making a decision? More than likely, it was holiday related and had little to do with the PS3 launch but it is fun to ponder anyway.

What about software sales? We’ve heard the Wii has little to offer in terms of games while the 360 wipes the floor with the competition.

Software sales charts, via GameDaily.com

To our surprise, the Wii is rocking the sales figures in terms of software but still doesn’t compare to the Xbox 360. Microsoft pulls out 93-million units while Nintendo takes home a modest 73-million units in software… yet again Sony doesn’t show up to the fight. Looking at November 2007, you can see the Wii jumps significantly in unit sales, no doubt related to the Super Mario Galaxy launch — once they hit that figure they never looked back and continued to climb.

Although a few of us expected Sony’s PlayStation 3 to make huge progress this year, each month they have marginal growth is causing their competitors to excel beyond anyones imagination. We’re starting to wonder how well Sony’s “10 year plan” is going to work out with their competitors taking advantage of the market now when, in 10-years, they will be sitting on their pile of cash to re-invest in the 8th generation of consoles.

(Thanks, GameDaily)

Microsoft Says Blu-ray Holds No 360 ValueMicrosoft Says Blu-ray Holds No 360 Value

Rumors float around the Internet questioning when Microsoft will ship a Blu-ray enabled Xbox 360 or add-on device like they did with the, now failed, HD-DVD. At CES 09 Robbie Bach, president of Microsoft’s Entertainment & Devices division, says this request is “way down the list.”

Mr. Bach had some great selling points as to why a Blu-ray player has little value in the world of Xbox 360. The primary reason, of course, being the Xbox 360 developers cannot take advantage of Blu-ray as a development platform for games. This was the price Sony, or the consumer, paid to own a PlayStation 3 since all games are printed on the media and are, in effect, Blu-ray “capable.”

We say capable because not all (any?) PlayStation 3 games currently make full use of the Blu-ray media. Many games will reprint the game on the media for optimization purposes, fill the game with international voice overs for all countries or, otherwise, stuff the media with something that will serve a useful purpose. Sony has near-future-proofed their device by giving game developers years of growth in terms of utilizing the Blu-ray capacity.

Microsoft chose to take the smaller old-style DVD format for games and media. Adding the HD-DVD didn’t add a large deal of risk because, as we saw, they can discontinue the model and not change their core gaming demographic. We still laughed a bit at them, but that was where it ended. Bach also said that it’s not really a great economic time to push a new 360 SKU on potential customers with additional cost just for Blu-ray movies playback.

They could add Blu-ray game development support as well but that would just alienate the “28 million Xboxes” they have already shipped.

“OK, let me get this straight: I’m going to add something to the product that’s going to raise the cost, which means the price goes up, consumers aren’t asking for it, and by the way, my game developers can’t use it.” (gamespot)

Of course, the first thing that came to our mind was “well, you did it for HD-DVD, how is Blu-ray different?” The key areas we can think of really come down to Blu-ray is a Sony technology and they are a direct competitor and, to top it off, HD-DVD allowed them to fight against the PS3 at the media level of the industry. They minimized the risk by making the product a secondary add-on device and, if HD-DVD had won, they’d have the winning format already under production (still not for games).

It seems Microsoft has changed their battle plans a little. They started out talking up the media aspects of the 360, using Media Center, renting movies and TV shows and had the HD-DVD as a subproduct. Today, they’re investing in Netflix for media and everything else favors the games.

Which is fine, we like games.