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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@Gamergate: Oh what a cluster-duck. Companies need to stay out of politics and people need to keep their personal lives out of the media and business world. Why are these people failing to learn these lessons? Not to mention the whole mob mentality of jumping on a bandwagon that they have no business getting involved in the first place. No wonder I’m an escapist. I had thought that the name Gamergate was a company until I read this story and not a continuation of the Watergate “meme”. I agree with Paul you shouldn’t add –gate to the end of every scandal. It makes it hard to differentiate from real things that have gate in it’s name like Brandenburg Gate or Golden Gate.
@Capcon: I know they are in the business to make money but I’ve always hated this mentality. The idea that if it doesn’t make 2 million it isn’t worth bothering with his a terrible thing, there have been games that did better over their life time then when they initially launched. Some games take time to build up their popularity and this need for them to be block buster sellers doesn’t guarantee quality. There are many AAA games that have sold millions and I have NO intention of ever buying or playing. This is the mentality that killed the original Sierra games and with them coming back I don’t want to go through all that again.
@Mario Clones: There was a similar joke in Sierra’s Leisure Suit Larry, where if your character died and you restarted they showed a cut scene of a new Larry being made and put back in place. So that’s an interesting game concept to imagine your characters going through.
@QotW: My favorite Saturday morning cartoon would have to be the Dungeons and Dragons. I loved Superfriends and Amazing Spider-man (who was teamed up with Iceman and Firesta). I had to use a site (http://www.inthe80s.com/saturdays.shtml and http://www.inthe90s.com/saturdays.shtml) to remember what cartoons were on Saturday morning as opposed to Weekday afternoon or morning. So I can’t seem to find when I watched Silverhawks, Thundercats or GI Joe, which I thought were in the morning. There are just so many to list but those that are very memoriable were Gummi Bears, Garfield, Kissyfur, and Smurfs. I have to agree with Jonah I do remember watching Smurfs mostly to get to whatever was after it and I didn’t stick to just one channel. It was a very warm and fuzzy nostalgic memory of a tradition that it is a shame has seemed to come to an end. I was like Jonah as well as after watching the cartoons I would be ready to go out and play.
The third Question of the week is that I play the Nintendo 3DS, I love all the RPG games and the old nostalgic games that I can play on it. I’m very into the Professor Layton games so that’s another one for Pawel.
GamersGate is the online store.
@EAs eternal struggle against its own credibility
When Battlefield 4 came out I was lucky enough to be at university and did not buy it at launch. I pre-ordered Battlefield 3 and spent the first day trying to get into a game, so I am glad I missed their second fiasco. DICE needs to stop rushing their games out the door. Especially considering that the Battlefield series have a terrible single player component which cannot compensate for lack of multiplayer (unlike Call of Duty).
@Thr Cute Terrors of Nintendo
According to the original Mario manual, Bowser turned all citizens of mushroom Kingdom into blocks. Basically, Mario rescues the princess as an accomplished mass murderer. In fact, Nintendo is full of creepy things which would make the Western audience cringe in fear. Dead Pokemon, Silent Hill-like Zelda dungeons and getting Zelda’s “Ultimate Reward” right in the dungeon she was kept in. Their early games are as good for kids as GTA.
@QOTW
The 3DS is still my favourite. I don’t play small iPhone games. I have KOTOR on the iPhone but it gets continuously interrupted by various notifications and calls, which makes me loose my progress.