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.

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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Sony’s PS3 Real 10 Year Plan: Home Entertainment TakeoverSony’s PS3 Real 10 Year Plan: Home Entertainment Takeover

The PlayStation 3 is the slow seller in the United States but Sony still holds belief in their “10 year plan.” Many of us consider this to be the same style of plan Sony used with the PS2, sell your console through multiple generations and own the market share. The PS2‘s launch was much more graceful when compared to its 7th generation counterpart. Perhaps the PS3 has a different destiny… perhaps they want to remove all other media boxes from your living room.

Imagine a life without a cable box or Tivo and you’re probably envisioning Sony’s road map for a media distribution empire. First, remove Tivo from the situation with a DVR style box using their PlayTV technologies, wired up to the PlayStation 3 using a USB connection. The United States hasn’t seen a launch of PlayTV, more than likely because the PS3 isn’t a huge console here yet and Tivo is partnered with many cable and satellite providers already.

Senior director of the PlayStation Network, Susan Panico said Sony “looks aspirationally at HBO, the way they have Sex and the City and other shows” (gamespot) after admitting Sony wants to replace cable boxes in the home. Tivo has already done a great job removing the need for a cable box, allowing you to rent a “cable card” to insert into a Tivo and gain access to all their content for your DVR needs. DirectTV offers (or has in the past) a Tivo or Tivo-like DVR solution. Cable and DirectTV offer the ability to rent their DVR or offer a solution to purchase your own at a retail outlet What if Sony decides to partner with one or more of these providers to offer an all-in-one solution. PS3 owners wouldn’t have to purchase additional equipment and could be up and running immediately with hard disks big enough to handle HD content.

Sony could offer you a graphically appealing gaming experience, a high definition BluRay solution, media distribution for renting movies, an iTunes style online store for purchasing and playing music all wrapped up in a DVR solution. All this content for a $400 price tag is a value when all the offers are combined into one tiny black box.

Looking at today’s Tivo Series3 HD DVR you’ll notice the ability to play music directly from iTunes, browse and play Youtube shows, watch Disney offerings and even high definition NetFlix playback. The Tivo DVR’s can also talk with other DVR’s in the household making it easy to share TV records across systems. The only thing missing in the Tivo solution is a high definition gaming platform and the BluRay hardware.

We’re all sitting here poking fun at the small PS3 game library and telling people that BluRay is going to lose out to HD downloads yet we may be missing the bigger picture: an all-in-one media empire solution. The PS3 may not carry the largest game library compared to the Xbox 360 or the sales records of the Wii but if Sony finds a way to become a reliable and required media set top box they may realize their true “10 year plan.”

Why Doesn’t iTunes Have Game Trials?Why Doesn’t iTunes Have Game Trials?

Nothing is more annoying than going into iTunes to see what video games are available for the iPod Touch and iPhone to find it cluttered with hundreds of duplicate games. Developers seem to find it most useful to release two games instead of one single game: a full version and a “lite” version.

itunesDevelopers know gamers want to try before they buy, so many will create a game they’re hoping to sell, then a limited “lite” version with partial levels or stripped of features. They’re obviously trying to work around the fact that Apple released a half-assed game shopping experience. These pro and lite versions assist in cluttering the shopping space.

iTunes App Store should allow users to trial a game by allowing them to download a neutered version of the game title or using a time-trial like many other downloadable game services. Electronic game downloads are usually non-refundable because you can never give back a product which you can make infinite copies. The solution to getting users to buy into your product is to allow them to try before they buy.

Apple’s obviously enjoying the immense game sales from the application store but they may be able to increase their sales by allowing gamers to see what they’re buying before they walk away empty handed. This would also limit the total products found in the App Store because developers won’t have to post to revisions to their game title to allow gamers to try before they buy them.

There are some obvious downsides, Apple wouldn’t be able to boast the thousands of products in their store because many would be substituted for a real game download system. Okay, that’s really the only download I can think of… any others?

Developers may opt out of a trial system, forcing gamers to buy it before they try it based on the text and screenshots or utilize a time trial or limited featured version.

Thoughts?

PlayStation 3, March 2009 Price Drop RumorPlayStation 3, March 2009 Price Drop Rumor

With so many people wishing Sony would cut the PS3 price to something more reasonable, it’s no big surprise we see constant rumors about potential “price cuts.” This time, a March 2009 rumor “supposedly” came out of the Sony Annual Briefing in London where a butt ton of information was “rumored” to be leaked.

The anonymous source is running around with a bunch of neat rumors, such as a LittleBigPlanet release on the PSP but the one that may hit home most with gamers is price cutting. The PS3 has been around for a few years now and hasn’t budged on the price tag; they’ve had fire sales on obsolete products (smaller disk drives mainly) but no official drops.

Sony won’t comment on speculation, of course, but we’re sure they want to catch Mr. Anonymous from hiding in their meetings and giving away their information… if it is real. D+Pad published the rumor-mongers message saying the “SCEE will be getting more competitive in price from March 2009 onwards.”

Easter would be a fine time for a price cut, if the speculation is real. This upcoming holiday would have made the most sense, to consumers, but Sony apparently has no plans to reduce the price around the time their sales will be increasing anyway. As the PlayStation 3 is doing okay in PAL territories Sony is relying on them, it would seem, to kick up the numbers and show Microsoft they’re not the only second-place game in town.

The Wii continues to dominate and we’re sure a PS3 price drop won’t impact Nintendo’s sales strategy or gamers decisions on one console versus the other as a price drop wouldn’t bring it to a competitive Wii price.

What is your magic number? What price would you buy a PS3 at if you don’t own one already. For us? Drop it a bit and throw in a free LittleBigPlanet.