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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Been a long time since I posted last. Bloody university getting in the way of life. Glad to hear that you guys are now part of the next gen. My opportunity has fallen through, as the Game store that I pre-ordered my console from tried to bait-and-switch me twice for a more expensive PS4 bundle which I did not want. That and I withdrew my pre-order as all the games I wanted to play have been deferred till next year. Probably will get it when Elder Scrols comes out.
@EA
Ok I will admit it. Humble bundle was a stroke of genius. EA tried competing with Steam for years via Origin with poor results. But Humble Bundle blew Steam clear out of the water. They may not be making money with this, but Humble Bundle is a brilliant positive publicity generation tool. That is something that EA needs more than money.
@The name is Bond. James Bond. A level 72 Dark Elf Warlock in service of Her Majesty the Queen.
I can see the point of this. Gamers are impressionable people, mostly in their teens and early adult years. They are perfect targets for criminals. If you are fresh-out-of college/university unemployed, your opinions can be easily swayed. Maybe that’s what the intelligence agencies are looking for.
@Neverwdning Story
The media industry rule of thumb is that a franchise should finish with a number 3. Anything that goes beyond that is just dragging the series out. Unless there is a reasonable time gap between the releases (i.e Final Fantasy, Halo).
Assasin’s Creed is now planing it’s 7th game. I am currently playing the 3rd one. Since I don’t do series marathons I will probably catch up to the series in 2020. That is rather daunting. Maybe they should really bring Prince if Persia back…
@Disney’s Indiana Wars: Raiders of the Lost Ark Strike Back. Excelsior edition.
To be honest, I think it is a good thing that Disney is sponging up all the abandoned IPs. Not only do they inject it with money, they do a good job marketing it as well. Indiana was idle for quite some time. He should be out of retirement kicking Nazi ass about now.
PS: I remember Disney wanted to acquire Mortal Kombat. And now imagine a 12+ Mortal Kombat experience. The horror…