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?

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Wii Takes US Lead In Console WarWii Takes US Lead In Console War

Just in case people were actually thinking the Xbox 360 was going to hold out against a viral console, Nintendo is now the best selling console in the United States. Anyone really surprised?

This months sales figures for consoles broke down something like this:

  • Nintendo DS: 783,000
  • Wii: 666,700
  • PlayStation 3: 405,500
  • PSP: 337,400
  • Xbox 360: 219,800
  • PlayStation 2: 188,800

Barring the crazy hand held sales of the Nintendo DS, you can clearly see Nintendo holds top-spot yet again, but this month Sony’s PlayStation 3 followed right behind. Although there was a good 200,000 difference, Sony didn’t do so bad; imagine if Nintendo had an MGS4 killer app?

Metal Gear Solid 4 sold 871,300 copies, individually, and roughly 1-million if you include those bundled with the PlayStation 3. The question is clearly answered, MGS4 helped sell Sony’s consoles. The new question will be: Can Sony keep the 2nd place rank against Xbox 360?

Until Gears of War 2, there isn’t a killer game for the Xbox 360 and GoW2 probably won’t move any consoles, those that love the series bought their console when Gears of War arrived. The next big console mover may, in fact, be Final Fantasy XIII for the Xbox 360 as it’s no longer exclusive to Sony and the 360 is a more cost effective way to get into the game.

How does Nintendo continue to keep the pace? Perhaps because their games are still in top positions with Wii Fit in 4th place, Wii Play in 5th place and Wii Kart in 7th on the June 2008 software charts.

(Thanks, 1up)

EA’s Spore Spawns Class Action LawsuitEA’s Spore Spawns Class Action Lawsuit

As most folks expected, Electronic Arts use of the SecuROM trojan install has sparked up a little class action lawsuit against the publisher. At first, EA thought they could just bump the total installs from three to five to make gamers happy, but they’re out for blood.

With an amazon rating of 1.5 stars and 2900+ ratings, it’s obvious that people are not happy with the security system used by Electronic Arts for this title. Forbes mentions how pirated the game has become since the DRM news went hot and pirates are touting to download it for free to make your “voice” heard. Legally, you can make your voice heard by setting up a class action lawsuit and so it begins!

“Although consumers are told the game uses access control and copy protection technology, consumers are not told that this technology is actually an entirely separate, stand-alone program which will download, install, and operate on their computer,” read the complaint. “Once installed, it becomes a permanent part of the consumer’s software portfolio. Even if the consumer uninstalls Spore, and entirely deletes it from their computer, SecurROM remains a fixture on their computer unless and until the consumer completely wipes their hard drive through reformatting or replacement of the drive.” (gamespot)

It seems everything boils down to the how EA went about protecting their assets. Nobody faults the publisher for trying to keep their products out of the hands of pirates. The pure fact that EA has chosen to install separate products that snoop on your operations and can malfunction your system is the hart hitting point. Rubbing it in worse, pirates had the game broken and free to download prior to the release of Spore in the US.

Although the license agreement will state the product uses a digital rights management technique, it fails to explain the details of the SecuROM’s stealth install and inability to remove itself without wiping the hard disk.

The suit accuses EA of “intentionally” hiding the fact Spore uses the SecurROM.

New Australian R18+ Proposal DraftedNew Australian R18+ Proposal Drafted

A new draft of the R18+ classification has been released by home minister Brendan O’Connor through the Australian Federal Government. The new guidelines closely match those in place for Australia’s film industry. The new R18+ rating removes restrictions on bad language, drug use and nudity; in contrast, the current guidelines forbade the classification of any adult-themed games.

O’Connor’s draft claims that the R18+ rating will allow “virtually no restrictions on the treatment of themes”, and violence in games “except where it offends against the standards of morality, decency and propriety generally accepted by reasonable adults to the extent that it should not be classified.” As far as sex, the draft says, “Sexual activity may be realistically simulated. The general rule is ‘simulation, yes – the real thing, no'”.

Of course, “standards of morality, decency and propriety” is still troublesomely subjective, while “simulation, yes, the real thing, no” is comicly inept for videogames, where everything is simulation. You may be able to tell when live actors are actually performing sexual acts, but when can you tell a videogame character is actually having sex?

O’Connor stated:

“The Gillard government wants to provide better guidance for parents and remove unsuitable material from children and teenagers. The introduction of an R18+ classification will help achieve that and will also bring Australia into line with comparable nations. This issue has been on the table for many years, without the necessary progress to make a change. We’ve recently seen several states publicly express their support for an adult only rating for games and I’m keen to reach a unanimous decision at the July meeting.”

Rather than banning games, why not punish stores for selling mature games to underage children? Or put the onus of raising children on the parents?