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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@Exbox One and Paystation 4
The Chinese have a very different understanding of what copyright infringement is. At university I was genuinely laughed at for having physical UMD disk games for the PSP by my Chinese course mates. Apparently in Hong Kong you can purchase an already cracked system and download the games online. As lucrative as the Chinese industry is, I don’t think Sony and Microsoft can ever crack it, regardless of the legal status of gaming in the country. Piracy will kill any profits they hope to make. The only games that can survive in China are Freemium games, which offer online transactions for additional content.
@Street Fighter 5 BETA be worth it (sorry my pun game is so weak)
I was never really a fan of the Street Fighter series. Like Jonah, I found it too technical. My biggest problem with the series was its poor storytelling. That’s why I grew up playing Mortal Kombat, with its accessible lore and buckets of ketchup. I was surprised to hear that SFV will be exclusive to PS4. Sony must be paying Capcom a lot of money to keep it that way. Ironically, while skipping Microsoft Xbox One, Capcom is bringing SFV to Microsoft PC,meaning that I can still enjoy the series as long as I overclock my system and get a diamond fiber connection.
@Pee-sports
I still can’t believe that e-sports actually exists. At least don’t call it sport. Comparing Usain Bolt to some spotty snotty teen who calls himself DeathLordOverkill745 is just laughable. Nonetheless, e-sports is difficult to ignore. Its raising the profile of gaming, and often in a negative way. Maybe some proper regulation will do it some good.
@QOTW
I can’t think of an expansion pack that I actually enjoyed. I don’t tend to buy expansion packs on their own. I get them with GOTY edition or in a bundle, so for me they become just a part of the game. The only recent ones I can think of were Dawnguard and Dragonborn for TES5, but all they did was throw extra content at my already overpowered Dark Elf.
I believe that a good expansion pack must provide you with a new gameplay mechanic, that lets you enjoy the game in a new way. Its what distinguishes an expansion pack from DLC. Throwing more of the same at you after you already completed 10 hours of a game is not worth the money. The expansion must also feel like an addition to the game; not something that was supposed to be there in the first place.