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.
Midway’s been around the industry for years, has decided to lay off up to 90 people and cut the Criminal project from their lineup. This is a long term plan of cost reduction by the board of directors to get down costs and keep the company running smoothly.
Their plan seems to be to develop games intelligently, by costing out each project and building what’s needed to make the company profitable without excessive cost. A company always runs best when it’s doing it wisely and looking to reduce overhead, unfortunately a company in a bit of trouble has to let go of employees to get their.
While this was a very difficult decision, we feel it was the right thing to do for the future of Midway,” said Matt Booty, interim CEO and president of Midway Games Inc.. “We view every game as an investment that must meet certain standards for quality, scheduling, and profitability. Midway remains committed to producing the highest quality entertainment, as evidenced by our strong holiday line-up which includes TNA iMPACT!, Blitz: The League II, and Mortal Kombat vs. DC Universe starring a team of MK characters and some of the most recognizable DC Comics personalities such as Batman, The Joker, and Superman.” (kotaku)
Hopefully this allows them some breathing room to get out of this sticky situation, we hate to see old names go down in history as failed.
Halloween is a scary time of year, no less when you’re posting a $310 million net loss. EA CEO John Riccitiello sees “weakness” at retail in October and we’re betting this isn’t the end of the road of sorrow for game publishers around the globe.
Electronic Arts isn’t unfamiliar with bad times and we’re sure to see them make constant adjustments to their headcount, game releases and press as the economy goes into a bit of a slump. Although the game industry won’t see as big a hit as the financial market, everyone is going to watch their spending during slower economic times.
That slowness is a red flag for the mega-publisher, which says it’s “proactively making cost adjustments now.” One of those adjustments is the axing of some 600 EA employees across the globe. (Kotaku)
Last year Electronic Arts lost a “small” $195 million during the same time, not exactly a gold star on the financial records but it sure looks better than this loss. A few games may crumble under the economic pressures, Tiberium for example, but let us not forget the good times! EA posted some nice figures for Spore, Madden NFL 09, Warhammer: Age of Reckoning and Mercenaries 2: World in Flames.
So, they mixed a few sequels with a few new franchise hits and gave gamers some pretty hot titles for the year. Of course, hot titles in our hand do not always translate to positive revenue in theirs.
This episode sees the debut of a new co-host, videogame writer T.J. Denzer, who joins Jonah Falcon and Scott Dirk for this long episode, discussing Star Wars, spoilers, and other news that didn’t make the cut. This week also has the first Gaming Flashback in over a year, taking a look at The Elder Scrolls IV: Oblivion.
This week’s news includes:
Question of the Week: “What is your favorite strategy game?”
