Episode 343: iPad Hot Air

This week sees the return of Paul to the crew, but unfortunately, Jordan’s voice is shot so he can’t make it a team of three. However, Jonah is happy over having a new iPad Air, while Paul laments unemployment. This week’s Gaming Flashback is Team Ninja’s classic Ninja Gaiden for the Xbox.

The news for the week includes:

  • Microsoft pulls page discussing Titanfall online preloading
  • Report: Ouya Everywhere puts games on TV, PC without the Ouya
  • EU takes on β€œmisleading” free-to-play games
  • Castlevania: Lords of Shadow 2studio boss, β€œOne must be blind or stupid to give it a 4/10?
  • Nintendo separates Quality of Life business unit from consoles
  • Project Milo isn’t coming back

No Question of the Week – listener questions are wide open.

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Activision Blizzard Official, Merger CompleteActivision Blizzard Official, Merger Complete

The deal has been done, you can now officially call the company Activision Blizzard. Sure, the name is sorta lame but it does cover the bases… they’re Activision and they’re Blizzard; surely neither company wanted to lose their lively hood and branding.

We’re now looking at a company that’s more powerful than Electronic Arts, surely this worries Electronic Arts a bit. However, consumers like ourselves should be cheering for more competition against the big EA, perhaps forcing them to innovate a bit more and keep competitive.

Many gamers and industry participants would love to see independent companies grab a bit of the market share and bring in new startup companies and spin-off studios. However, if there is going to be a merger at the top-tier it might as well be one that puts pressure on Electronic Arts.

“We have created the world leader in online and console games with this transaction, and the combined strengths of the two businesses offer immense growth potential,” gushed Vivendi SA CEO Jean-Bernard Levy. “I am also very confident that, with the new leadership team in place, the new entity is perfectly positioned to take advantage of these rapidly developing markets across the globe.” (gamespot)

Now, we’ll have to wait and see if the upper level management can get along in a fluid manner and keep all their projects on track. With great power comes great responsibility, they’ve got the power… are they going to be responsible with it?

Studios Closing: The Good, Bad and UglyStudios Closing: The Good, Bad and Ugly

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?

(more…)