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

Australian PSN Restoration DelayedAustralian PSN Restoration Delayed

The Japanese government has not allowed PlayStation Network to be activated for Japanese gamers yet due to security concerns, and now an expert is advising Australia to follow suit.

Professor Bill Caelli told newspaper The Australian, “Why is it that in the IT industry enterprises certify themselves?” said Caelli, noting that PSN didn’t have the same restrictions, and added that the public has “no way of assessing the assurances given by the owners of the (PSN) system themselves”.

Reportedly, Australian privacy commissioner Timothy Pilgrim has been in contact with Sony, and has not judged yet whether Sony has given them enough information to restore PSN. His investigation will be an ongoing one as well, even after PSN is restored.

When it was discovered user information had been stolen during the PSN breach, the Australian federal government announced plans for a law forcing companies to disclose privacy breaches, although it was unclear when it might come into effect. Privacy minister Brendan O’Connor had stated:

“Sony isn’t alone. We’ve seen serious privacy-related incidents in recent months involving other large companies. All companies that collect customers’ personal information must ensure that the information is safe and secure from misuse.”

We’ll stay on this story as it develops.

Jack Thompson Says Take-Two Chairmen Must Repent His SinsJack Thompson Says Take-Two Chairmen Must Repent His Sins

The washed up Jack Thompson, also known as the thorn in the side of Take-Two has gone off the deep end. Originally, Thompson would do everything in his power to bring the negative press (and lawsuits) to Take-Two for Grant Theft Auto, Man Hunt and any other game he didn’t like.

Hot Coffee!Rather than allowing parents to utilize the ESRB rating, Thompson found it in his Christian heart to pursue game companies like his own personal holy war. Luckily he’s lost all his power because people finally realized he’s a lukewarm loon with a one track mind. But wait, there’s more!

“Mr. Zelnick’s problems at Take-Two are miniscule [sic] compared to the eternity of punishment that is coming his way unless he repents and accepts Christ as I did 32 years ago this month.” (1up)

When the law doesn’t work out for him, he takes it into Gods hands. He fires right over at the chairmen, “there is no blessing for Strauss Zelnick, who is not a Christian, when he gets what he deserves…”

The game industry was doing well before Jack and it will thrive without him in the way as well. One man cannot change the world, especially when that one man tends to act like a raving lunatic. Parents must guide their children down the right paths, show them life’s possibilities and understand what content is rated for what age. We’ve figured out how to handle movie ratings, we’re sure adults will figure out the ESRB rating as well.

We give too little credit to parents when it comes to making decisions for their children. If they cannot make the right decision on allowing a six year old to play Halo or Resistance, then can we actually trust them to keep a child out of R rated movies or finish their dinner before getting a snack?

Xbox 360 Japan Sales Drop, PS3 Sales CrappyXbox 360 Japan Sales Drop, PS3 Sales Crappy

The Xbox 360 saw a huge jump last week with Tales of Vesperia from Namco Bandai, but has dropped back down to normal sales (about none). Some are saying it’s mainly because of a short supply as the 360 sold out in Japan as a result of Tales of Vesperia.

In other news, the PlayStation 3 still isn’t selling very well, a bit more than the PlayStation 2 but nothing like the PSP. The DS holds the record yet again, no surprise there, but we always though the 360 was losing to the Wii and PS3. Although the Wii isn’t doing bad it’s not at the same crazy sales pace it is here in the United States.

The drop in sales for the 360 was fast, hopefully it was indeed due to out-of-stock issues, else that drop was faster than the drops we’ve seen here for GTA IV or MGS4!

(Thanks, Kotaku)