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.

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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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Nintendo Takes Yet Another Month in United StatesNintendo Takes Yet Another Month in United States

The holiday season is over, the NPD sales data for January 2008 is in and we see a common theme: Nintendo rules the show. While Sony continues to try and persuade gamers that the PlayStation 3 is in a completely different gaming category, statistic gathering companies like NPD put ’em all in one big basket.

wiifitIt makes sense for Sony to try to push themselves away from being classified with the Wii console because it makes them look bad. We’re all equal gamers here, there is no need to break into more sub-categories when only three consoles vying for top spot. Many folks (including us) criticize the slow adoption rate of Wii games, yet they steal top software sales spots as well.

  • Wii — 679,200
  • Nintendo DS — 510,800
  • Xbox 360 — 309,000
  • PlayStation 3 — 203,200
  • PlayStation Portable — 172,300
  • PlayStation 2 — 101,200

Thankfully Sony’s PlayStation 3 product took top spot on their hardware list, so that’s not so bad. Sadly, combining all Sony’s hardware still doesn’t meet the units of the Wii.

On the software sales front, Nintendo took six of the top ten positions including position’s one, two and three. Wii Fit takes number one position with an insane 777,000 units sold. The only closest product to Wii Fit was Wii Play (still!) with 415,000 units sold. Place four was held by a 360 title, Left 4 Dead sold 243,000 units.

Although many gamers haven’t turned on their Wii in ages, there is no doubt the market is red hot for Wii. At this point, we’re all wondering how long it will last — any predictions? It’s already been a long time.

Episode 766: Madden Gets 2030Episode 766: Madden Gets 2030

The news items include: EA and NFL extend Madden license til 2030 – NFLPA still far apart, former Battlefield 6 campaign boss calls out EA for leaving him and other developers out of the credits after closing his studio in 2024, Ubisoft has come up with a new way to avoid saying the word ‘layoffs,’ with a ‘voluntary career transition program’ offer that some employees won’t be able to refuse, ‘Pacifist Battlefield completed’, Palworld studio Pocketpair says its new publishing division won’t handle games that use generative AI: ‘We don’t believe in it’, Two Point Museum gets Vampire Survivors content in free update.

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DSi Will Be Region-Locked, Sad Face…DSi Will Be Region-Locked, Sad Face…

One of the greatest things Nintendo has done was allowing the DS to be unlocked for regions. This allowed gamers around the world to share their favorite games from all cultures and countries with just a click of the “buy” button at an online store.

The DSi loses this great freedom by locking it down to a region. “Nintendo DS software is region free so you can play any DS software on DSi from any region. You can also browse the internet on your DSi wherever you are in the world and exchange your photos with friends from around the world,” says Nintendo (CVG).

Much like the US Entertainment Industries need to lock down everything and contribute to global piracy, Nintendo follows suit with their hand-helds, tis a sad day indeed. Of course Nintendo reasons it all away by yelling parental controls and making it easier for regions to access their own content.

“DSi is region locked because DSi embeds net communication functionality within itself and we are intending to provide net services specifically tailored for each region. Also because we are including parental control functionality for Nintendo DSi and each region has its unique age limit.”

Specifically tailored for each region is a nice way of saying that each region has to pay the penalty of not being “first” (second, or third) to get some cool new features. Although Nintendo could put emphasis on the region the gamer lives in with complete access out of those bounds if they wanted, they’ve chosen to use this as a crutch to lock users out of content.

Users will get their content, of course. It just means more home brews, software hacks, hardware hacks and workarounds for the system. If that’s what Nintendo is trying to inspire, then they’ve done their job right.

However, wouldn’t it be great if they could just come out and say “we don’t want certain people accessing specific content until we say you can.”