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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Great show guys, enjoyed the topics greatly.
@Joystiq no longer scoring: I agree I never liked the scoring of any game it never told me what I really needed to know about the game. Saying 3/5 stars or 90% is like saying Banana or starfish! Completely arbitrary and meaningless, I need and want to know how the person felt about the game they played. Take Dragon Age Inquisition, I have heard many detailed reviews from people I know about the game what they liked and didn’t; and I value that over some random score some review site gives. As you guys pointed out someone who doesn’t like a genre of games may be biased against it and will hate it no matter what. I had argued with someone the other day who felt that since Dark Souls had no story it was a bad game, when they were clearly missing the point of that game all together. So I am glad they have decided to drop scoring a game and entice people to actually read the review.
@Jonah joining NC: Speaking of reviewing Wow that is awesome, have you made videos for them already?
@Hatred AO rating; My first impulse to hearing this was good, I don’t think little children should be playing this violent a game, and before Paul says it yes the parents should be paying attention to what their kids play. I guess I can’t deny they have the right to make whatever game they want and make it available but stores do have the right to refuse to sell something if they don’t want to sell it. I’m fine with the rating to make it clear just how violent it is, course there are plenty of violent games but do have much more context as to why the violence is happening. I remember being bothered when my daughter was playing Fable 2 and she wiped out the starting village, for some reason the game didn’t summon any guards for that action.
There is a double standard with the violence being more acceptable for kids to witness. I’ve asked myself this, why is it ok to have a movie or game that kids kill people or see violent acts yet you get some nudity and then suddenly everyone losses their mind. I think at least for me it’s because violence is wrong and sex is not. It’s easy to say “well this is fantasy and we’re just having fun make believe” but sex there’s nothing wrong or bad about it, it’s a natural thing and can be difficult to discuss with someone who isn’t mature enough to handle it yet and I mean the real intimate details and not just “when two people love each other”. It is a difficult subject and it’s up to each parent to decide when to talk to their children about these things.
@Pose able toys: I think this idea really Is brilliant to have movable figures that would respond or give signals to in game actions. That would greatly increase interactive ness. I am also tempted to get some amboii’s if for no other reason than to display them, this is a DLC I can get behind.
A side note next time someone has a very noisy background that even the co-host can’t hear you maybe they should mute their mic or find a quieter place to record.