Two more episodes, and Paul is no longer a regular podcast host. On a side note, there will be no podcast next week due to scheduling conflicts.
This week’s news:
All this and Listener Feedback.
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?
Nintendo has finally given a launch window for their next console, while TJ is slightly distracted by the Chiefs.
This week’s news includes:
Let us know what you think.
The month, June 2008, Metal Gear Solid 4 takes number one on the NDP figures with 774,600 individual units (over 1-million if you include bundles), in July… they didn’t even make the top ten figure. What the heck?
NCAA Football 09 for the Xbox 360 took number one with 397,600 games sold, nothing close to MGS4’s figures form last month but still took the first position. Wii Fit took number two position, up from its fourth position in June showing lasting appeal or the ability for gamers to purchase the rare to find game set.
Wii Play still sits in the top ten titles along with Mario Kart and Rock Band (for the Wii). As a matter of fact, four out of the top ten titles are Wii games. One for DS (Guitar Hero: On Tour), two for Xbox 360 and two for PlayStation 3.
How is it possible for Wii Play and Wii Fit to hold top positions for so long while a game like MGS4 dies off so rapidly? More than likely this is the impact from having such great console sales that even a low attach rate (games to consoles) is significant enough when millions upon millions of consoles have been sold.
If the PlayStation 3 had more units in the hands of gamers, would their top tier titles like MGS4 hold top spot for more months? Presumably yes, another negative impact from being third in the race it seems.
(Thanks, 1up)
