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.

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 528: Back From DisasterEpisode 528: Back From Disaster

Jonah’s desktop PC finally died completely from irretrievable hardware failure, and this episode was recorded clumsily on his cellphone. Meanwhile, TJ has been enjoying Apex Legends enormously, and gives it a rave review.

Otherwise, this week’s news includes:

  • Activision-Blizzard lays off 800 employees
  • World War Z gets an April release date
  • Dragon Quest Builders 2 comes to Switch, PS4 this summer
  • Chucklefish boss says Sony is responsible for lack of PS4 crossplay

The Question of the Week is “Which game would you love to see remade?”

Episode 508: MarriageEpisode 508: Marriage

TJ announces his nuptials the previous week, finally marrying his live-in girlfriend of 10 years. All that, and many parables that had to be cut from the podcast lest it last 90 minutes.

That said, there’s plenty of news this week:

Let us know if you spent $50,000 on a virtual spaceship.

Episode 527: Technical IssuesEpisode 527: Technical Issues

This week’s episode has minor audio issues, but otherwise is okay. Most of the talk is about the Resident Evil 2 remake, and how it’s taken over the world. The crew also discuss the latest Gathering Storm civ, Phoenicia.

The news of the week includes:

  • Capcom shipped 3 million units of Resident Evil 2
  • Valve calls exclusive Metro Exodus deal with Epic “unfair” to Steam customers
  • American McGee confirmed to be working on Alice 3 story, art and design
  • Fallout 76 Survival Mode – PVP Beta starting in March

Let us know what kind of game you want to see remade.