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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@QuestionOfTheWeek: I wanted to play Phantasy Star Universe (yes, the single player) on a PC but couldn’t because it required an always-on Internet connection for nProtect anti-cheat software. I lived at home at the time in rural Oregon with a poor connection. My mom still only gets a 28.6 kbps modem Internet connection there. Sad.
Yeah, finally finished with my exams, I am overall satisfied with how I did. Now I just have to wait until July for the results.
The 265 hours in Team Fortress 2 are actually spread out mostly over last summer, and the 96 hours in Super Monday Night Combat are from the day it went live, so in the last 37 days. A huge factor in these numbers is that I listen to podcasts such as yours while playing them, getting double the enjoyment. Maybe that’s why I didn’t feel these exams as very heavy, even though they are a huge stepping stone to the future.
As for where I’m getting all this time from, I have plenty of free time between homework and studying because I am quite content in getting 1st place in the subjects that matter to me the most (Maths, Physics, Computer Studies etc…). So yeah, you could say I’m enjoying my teenage life.
@QOTW: To this day, I haven’t had any problems with DRM (except a small one with Mass Effect 3, damn you Origin), so this doesn’t have any effect on my purchase. I still understand the problems and agree that DRM sucks.
@DICE has Frostbite-powered titles for 2013 that “will require a 64-bit OS”
Thing is, I remember hearing that a 64 bit processor can add two sets of two 32 bit integers using the same amount of registers needed by the 32 bit processor adding one set of two 32 bit integer.
Still, I think that the main call for the 64bit os will be the amount of RAM needed to run the game. Think of textures: although the video RAM is the better place to store them, you can still page them from the system RAM.
@Actors confirm return to recording booth for Mass Effect 3
I’m with Dan, it’ll be like moving from “Here’s a crappy ending” to “Here’s an epic crap ending”.
@The truth is DRM does not work
What’s funny is that game companies that want to publish their games on Steam they must remove any form of DRM; sometimes those said companies will simply use a cracked executable when publishing on Steam 😉
Publishing later on a platform actually kicks down the sales. But I agree, pirates are not going to pay for the game anyway.
@QOTW:
Starcraft II.
When they announced full time internet connection required, they lost me. I don’t care about Assasin’s Creed, but the Starcraft universe was interesting.
I’m not interesting in buying the game anymore. First, I hate that type of DRM. And even if I’d accept it, I still run on a 3G modem, so I would then have to deal with technical difficulties.
So, Blizzard can keep the game for itself.
I don’t have much time this week so I’ll go straight for QOTW:
Diablo 3. Tried the free pass, liked it, but I can’t understand that DRM policy. Torchlight2 ftw!