Gamers around the world are going to feel the pain in the 2009 holiday season after the economy shakes apart many great development studios. Electronic Arts feels the pain of being a public company as their investors complain about lackluster revenue, THQ deals with closing studios to extend their runway and other firms will lose more headcount in the coming months.
It’s not all bad. But, it’s going to get ugly before it gets better.
The financial market has played tricks on everyone in our global economy and companies across all industries are going to feel a bit of a tightening around the belt. Investors are shaken and doing their best to protect their investments and cutting loose those that aren’t projecting profits in the near future. Game studios are going to slow their financial burn rates, trim a bit of the fat and hunker down the long term. The end result, next years holiday season will have a few less games because those games are being dropped to the floor now.
Mid-sized studios within larger firms may find their projects canceled or put on hold and their employees re-structured or let go while big studios assess what projects will make the long haul. This is the ugly side of the business, having to make a decision on what games stay and what games go with the grief of having to tell some of your best talent “goodbye.”
The bad part of the industry is occurring today, with publishers posting mediocre profits and trying to convince their investors to be patient and trust they’ve got a firm hold on their destiny. The game industry is not alone in this, many firms are reducing head count and many startups are finding themselves without series A or B funding; they’re closing their doors because the money is being directed to more stable ventures.
What’s the good in all of this?
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@Duke Nukem Forever review fiasco:
This one is almost ‘no comment’. The nasty side is what Jordan said (except foe Jonah I can’t yet distinguish your voices, sorry if I mix you up): they don’t mind blacklisting, they just don’t want it to be public.
@ Apple will be the games industry in 10 years:
You can even devise a control scheme for touch based interfaces, but!
Just like console controllers, a mouse and keyboard using player will best one using a console controller, in competitive gaming.
Jonah, I’m with you on the real books vs. kindle. Don’t get me wrong guys, that’s a device that I like, but it doesn’t hold a kandle 😛 to a real book.
@ No need for PS4, PS3 now hitting its stride:
Erm, hello, PS3 is hacked? Piracy will be as rampant on PS3 as is on PC? PS3 might become a very unattractive platform to develop for? (hard to code for it and with it’s DRM system exposed for all to pirate your product).
😀 Jonah, thanks for pointing out misspellings, it’s useful to me.
@Question of the Week:
I do care what it says in the review. I do want to read if a certain aspect is flawed: perhaps it is a feature that interests me, and in that case I’ll skip the game.
As for the score versus the entire contents, well, it actually depends on the value of the score.
If it’s below 5, then I don’t even bother to read the review. The score weights 100%.
If it’s up until 7, the score weights 50%. Above 7, it’s really up to the contents of the review, not the score: weight drops to almost 0%.
Just to let you know that things in Australia aren’t that bad. If one looks around abit you can get a good deal on games even if they are brand new. Granted prices have been $110 for some games but with some skill you can get it imported from the UK with shipping for nearly half the price. I havn’t brought a game from a major Australian retailer for some time now. Feel sorry for those who do ouch.