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 386: Late Yet AgainEpisode 386: Late Yet Again

Another late podcast, as Summer is in sight, and E3 looms ahead. Some minor audio issues with the podcast, but still the same podcast-y goodness we can expect from Paul and Jonah.

The news includes:

  • Analysts: “Greed, fear, and the potential to change the world” will drive VR
  • Casey Hudson joins Microsoft
  • Humble Bundle debuts Wii games
  • World of Warcraft players are pissed their characters can’t fly
  • Final Fantasy 15 news coming next week

All that and Listener Feedback.

Episode 312: Dare You To Press the ButtonEpisode 312: Dare You To Press the Button

This week’s episode is the final episode before E3, and next week, an outtakes episode filled with Dr. Who and Game of Thrones discussion will run. After that, we’ll have some serious E3 2013 discussion, especially about what happens with Microsoft and Sony in particular.

No Gaming Flashback, but news includes:

  • Pachter predicts $349 for PS4, $399 for Xbox One
  • World of Warcraft movie ‘begins shooting‘ in Q1 2014
  • Robert Bowling’s Robotoki raided by LAPD, mistake COD figure as armed intruder
  • Documentary seeks to unearth 3.5M E.T. cartridges from landfill
  • Oculus Rift developer Andrew Scott Reisse, 33, killed as bystander in police chase
  • Shadow of the Eternals Kickstarter fundraising struggling

All that and Listener Feedback.

Episode 283: A Little LateEpisode 283: A Little Late

This week’s podcast was delayed when the original recording didn’t take and had to go with Dan Quick’s backup. Otherwise, the Gaming Flashback this week is the supremely weird Master Chu and the Drunkard Hu.

The other news items include:

The Question of the Week is, “What was the game with the worst title you’ve ever played?”