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 590: Microsoft and Epic Tag TeamEpisode 590: Microsoft and Epic Tag Team

This week has Microsoft backing Epic against Apple, Nintendo telling people they don’t have controller drift and apologizing for controller drift, and some new games.

The news includes:

  • Level-5 has reportedly halted nearly all operations in North America
  • Microsoft sides with Epic in its fight with Apple
  • Nintendo is reducing the price of Switch Joycons in Japan
  • Torchlight 3 leaves Early Access

Let us know what you think.

Episode 692: Final Failure 16Episode 692: Final Failure 16

[Reupload]

The guys discuss EA closing servers for older games, the Red Dead Redemption controversy, Tekken 8 and Killer Instinct.

The news includes:

  • Rumor: Microsoft planning on Xbox Series X Digital Edition
  • Square Enix’s profits drop after Final Fantasy didn’t “meet expectations”
  • Suikoden I & II HD Remaster is still planned for 2023 release
  • Street Fighter 6 fans hit out at $15 Teenage Mutant Ninja Turtles DLC costumes

Let us know what you think.

Episode 722: Off the RailsEpisode 722: Off the Rails

No Gravatar

[This file was corrupted and re-uploaded.]

Podcast notes:

  • Sony backs down on demand that Helldivers 2 players log into a PSN account
  • Microsoft announces Xbox Games Showcase and mystery Direct for June 2024
  • EU rules iPadOS must comply with Digital Markets Act, opening door for Fortnite
  • Hades 2’s surprise early access release already has more stuff in it than the first game
  • Square Enix announces it’s tanked $140 million in losses due to “content abandonment”

Feel free to leave feedback.

The post Episode 722: Off the Rails first appeared on Gaming Podcast.