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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Welcome back Paul, I didn’t know if it was for certain since Jonah said *might* be. I’ve been listening to since DanQ joined months ago.
I like how you get on my case about not being able to pick a favorite soundtrack and then go on to say how hard it is to do just that.
I feel that Link to the Past is still my favorite Zelda game in the series. I didn’t realize it was so heavily edited for American audiences but I am not surprised it was since it is a big practice to modify games and shows from Japan.
@Bully: Why would anyone want to play a game where they actually go to school? Didn’t we all do enough of that?
QOTW: Now, Jonah, what do you mean Boss battles are generally bad? That’s the high light of a good game, like in the Zelda series. They even made a game solely about Boss Battles (Shadow of the Colossus).