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 302: Just a TwosomeEpisode 302: Just a Twosome

This week Jonah and Jordan go it alone without Paul, which is unfortunately since the Gaming Flashback is the classic Nintendo 64 title Paper Mario. It might be just as well as the events of the last week made the crew ramble on about the industry at length, making the post much longer than usual.

This week’s impressive news items:

  • John Riccitiello steps down as CEO of Electronic Arts
  • Firaxis announces Brave New World expansion for Civilization V
  • Will fans back an Alice 3 Kickstarter, asks American McGee
  • Lord British explains Shroud of the Avatar‘s offline gameplay and DRM
  • Facebook of Italian automobile company mentionsGran Turismo PS4″
  • Team Meat sitting out on developing for next-gen consoles

Lots of Reader Feedback, but no Question of the Week this week – just too much show.

Episode 284: Joining KickstarterEpisode 284: Joining Kickstarter

The TD Gaming Podcast has started its Kickstarter fundraising, and really, even if every listener donated a few dollars, the project will get funded.

This episode is a bit short thanks to Dan having to skip this week and Jordan and Paul’s busy schedules. Don’t worry, this is only a one time thing, and a full length podcast will be recorded next week.

In any case, this week’s news includes:

  • Avellone: Kickstarter still in its infancy
  • PAX Australia tix now on sale
  • CD Projekt RED’s new licensed sci-fi RPG officially titled Cyberpunk 2077

This week’s Question of the Week, “What is your favorite convention to attend?”

Mass Effect 3: What REALLY Went Wrong, And How To Fix ItMass Effect 3: What REALLY Went Wrong, And How To Fix It

NOTE: THIS ARTICLE DISCUSSES THE ENDING AND EVENTS OF MASS EFFECT 3. DO NOT READ IF YOU DO NOT WISH THE GAME TO BE SPOILED FOR YOU.

In this day and age, one learns to take internet outrage with a heavy dollop of salt. The videogame community tends to be reactionary in the worst way, for a few reasons: they tend to be young, they tend to express their immediate feelings almost as a stream of consciousness, and let’s face it, the Greater Internet Dickwad Theory comes into play as well.

When it comes to game endings, when I hear that the community is upset about a game’s ending, I almost always take that as a good sign that the ending is daring and provocative. For example, there was an outcry over the abruptness of the ending of Halo 2, which had the nerve to conclude with a cliffhanger. The 2009 Prince of Persia reboot ended with the player undoing all of the work to free an ancient evil god they’d just imprisoned.

So when I heard that there was a growing outcry about the endings of Mass Effect 3, my interest peaked, because invariably, that meant the story was provocative and daring, instead of predictable and boring.

(more…)