Depressingly, sexual harassment in a development studio is once again the lead news item this week, and from a studio most gamers would never think it could happen. That, and major seismic shifting in the power structure of the digital storefront landscape.
The news includes:
Let us know what you think.
This week we’re working with our skeleton crew, Don was stuck at work so we’re flying duelies. Speaking of duelies, we’re flashing back to Rise of the Triad and covering some gaming history on Ralph Baer, a very important person in the gaming industry. This week, in the news, we’re a bit Wii centric with:
Wii Supply finally meeting demandAlso, listen in for your chance to win Peggle for Xbox Live Arcade with a simple question. We forgot to ask the question of the day on the show, so, here it is: Should Blizzard halt income made from addon develoment?
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?
Paul returns to the show to drown his sorrows in the discontinuation of a game series he loved, and the podcast ran so long it has to be split into two parts.
The first half of this podcast includes the following news items:
Stay tuned for Part 2.
