Episode 404: Rebel Scum

This week’s episode is a little late thanks to unforeseen circumstances, but nothing will stop us from posting new episodes. It’s actually one day late, since last week was a week off, thanks to Podbean limits and Halloween. On that note, this week, Jonah had to erase a spoiler segment about The Force Awakens, but enough remains of the convo discussing other parts of the upcoming movie.

This week’s news:

  • Sony not to offer backwards compatibility
  • Advertising Standards Authority rules Valve misled customers with Grand Theft Auto V Steam Sale
  • The Witcher movie slated for 2017
  • Ubisoft admits poor Syndicate sales are due to franchise fatigue caused by Unity
  • World of Warcraft paid subscribers at a nine year low at 5.5M

The Question of the Week is what we usually ask ourselves, but with all the new games coming out, “What have you been playing this week?”

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Activision Blizzard Trying To Scare Off Competition?Activision Blizzard Trying To Scare Off Competition?

A few months ago, Activision Blizzard CEO Bobby Kotick said investing $500 million to a billion still wouldn’t be enough to compete with an MMORPG like World of Warcraft. The MMORPG space is a costly investment and you’d need to really burn a lot of money to start competing against the mega-giant, but Mythic VP and Warhammer Online lead designer Mark Jacobs disagrees with that quote.

Jacobs says $100-million dollars would be needed to start competing against the giant subscription generator that is World of Warcraft. Although few developers are sitting on $100-million USD, it’s a bit more realistic an investment for a studio to scrape up compared to a billion bucks! A billion dollars is a scary number when you consider that’s the start of an investment that may, or may not, pay off in the end.

Kotick may not be using complete scare tactics, he may be working off experience when dealing with MMORPG’s. A startup MMO isn’t a cookie cutter system, there is a lot of development efforts, $100-million dollars worth, but MMO developers slip dates many times. When you start slipping your dates you’ll start burning more money and, before you know it, you’re a billion in the hole. Jacobs thinks $100-million will cover development costs and messing up, so a billion is still way over budget.

Perhaps this is a bit of a scare tactic, assuming a developer will fail and slip their dates isn’t really a great way to start quoting prices. However, shooting too low isn’t always the best method of building your development assessments. The end result, scream ONE BILLION and you may scare off any potential startup MMO developers.

Warhammer Online lead designer did mention one big barrier to entry: the need for “at least half a million subscribers to be successful.”

(Thanks, 1up)

Episode 722: Off the RailsEpisode 722: Off the Rails

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Podcast notes:

  • Sony backs down on demand that Helldivers 2 players log into a PSN account
  • Microsoft announces Xbox Games Showcase and mystery Direct for June 2024
  • EU rules iPadOS must comply with Digital Markets Act, opening door for Fortnite
  • Hades 2’s surprise early access release already has more stuff in it than the first game
  • Square Enix announces it’s tanked $140 million in losses due to “content abandonment”

Feel free to leave feedback.

The post Episode 722: Off the Rails first appeared on Gaming Podcast.

Studios Closing: The Good, Bad and UglyStudios Closing: The Good, Bad and Ugly

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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