This week’s episode is full of industry news in the wake of The Game Awards. There wasn’t many news items but there was plenty to talk about with the Awards, especially with this week’s Gaming Flashback, Unlimited Adventures.
This week’s news items include:
Let us know what you think.
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?
Unfortunately, we had to skip a week despite recording a good podcast thanks to technical difficulties – don’t worry, we’ll air it at some point in the near future. It was a good episode. This episode had its own issues, as Jonah was unable to record the podcast at home, so he was outside in the New York City night air podcasting with TJ and Scott.
This week’s news includes:
Let us know what you think.
The crew gets excited about the announcement of The Wolf Among Us 2, although it won’t be out for a while, and bemoan the infestation of live service games everywhere these days in videogames.
The news includes:
Let us know what you think on Gaming Podcast’s Facebook page here.
