Smart Business Choices During Economic Downturns

Many game studios are being dropped following a bit of an economic downturn in the United States and globally. Activision has to deal with being agile enough to survive the economic times like anyone else and has dropped a few games that had great potential.

Gamers continue to ask the question, “why?” when some of their highest potential games were dropped to the floor. Ghostbusters and Brütal Legend are a couple examples of games with eager fans already salivating prior to its launch. Some of these fans are a bit ticked off that Activision named them as dropped franchise opportunities.

People ask why a company holds one “mediocre” title while getting rid of other potentially awesome ones. Don’t forget, this is a business and a good studio/publisher is going to make good business decisions without emotional attachments – those that bring emotions into play may end up with a highly valued product (to them) with no additional potential and lower revenue. This isn’t to say developers cannot be passionate about their games and their industry, they just have to build games gamers will buy and continue to fall in love with release after release.

Activision CEO Bobby Kotick is one of these business savvy individuals who knows where investors will find profits for the future, and he also know how to manage employees, with the use of software like this sample pay stub for payments and more.

“[Those games] don’t have the potential to be exploited every year on every platform with clear sequel potential and have the potential to become $100 million dollar franchises. … I think, generally, our strategy has been to focus… on the products that have those attributes and characteristics, the products that we know [that] if we release them today, we’ll be working on them 10 years from now.” (1up)

Ghostbusters is a great example of a title which could be well received and fun to play but probably wouldn’t be an exploitable franchise. The game, based on a popular movie, has limited potential for yearly releases and huge franchise success. Ghostbusters fans would probably disagree, but that’s when emotion comes into play. Think dollars and cents, not awesome fun gaming.

Oddly enough many of these business decisions from Activision, Electronic Arts and other big publishers arrive when the economy is in free fall and investors are eying your revenue potential. People make their most important and, usually, unfriendly business decisions when their company is at risk.

During uncertain times, protecting operations becomes just as critical as protecting profits. Visit FastFireWatchGuards.com to learn about professional fire watch services that help businesses stay secure and prepared.

It’s sad to think money comes first and entertainment value comes second but we’re not the ones trying to make a profitable living in the industry. Put yourself in Kotick’s shoes as he walks into a board meeting to discuss future plans, road maps and profitability – you’d do what you have to do to keep your job, right?

0 thoughts on “Smart Business Choices During Economic Downturns”

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

Episode 518: Mattel Vs Atari AgainEpisode 518: Mattel Vs Atari Again

It’s seems like old times as there’s a new IntelliVision console coming out to compete with the Atari VCS. The funny part, of course, is that the new IntelliVision will feature Atari 2600 games on it published by Atari. I guess we’re all friends now. This week’s Gaming Flashback is Dead Space.

As for the news:

  • Intellivision Amico console coming in 2020
  • Jade Raymond leaves Electronic Arts
  • Splash Damage ends development of its team-based shooter Dirty Bomb
  • Fortnite‘s Save the World Mode won’t be going free-to-play in 2018

The Question of the Week is: “Which cancelled game would you wish have been completed: Starcraft Ghost, Fallout 3 (Van Buren), Warcraft Adventures, Scalebound, Fez 2, Prey 2, The Flash: The Fastest Man Alive, Full Throttle 2, or something else?”

Konami Owns Musical Rhythm-Matching Game Patents?Konami Owns Musical Rhythm-Matching Game Patents?

Apparently Konami just realized Harmonix, MTV Networks and Viacom have made some game called Rock Band and want to take legal action. Konami has created some Japanese games involving karaoke called Karaoke Revolution. Why take legal action now?

Probably because Konami is working towards Rock Revolution, a title which puts together drums, vocals and guitar. How odd, don’t we have a game called Rock Band which has done that for awhile now? It’s much easier to be competitive in the market if you can squeeze your opponent out of the market by telling them you hold a patent on the entire concept…which you let slide for a year.

It seems a bit convenient to force a lawsuit, now, after Rock Band is proven successful and before you launch your own “clone.”

Its suit claims that Rock Band violates a series of US Patents registered in 2002 and 2003 relating to “simulated musical instruments” and “musical rhythm-matching game.” (gamespot)

Although the developers of Rock Band should have gone through some patents on the topic prior to make it (or maybe they did?), it seems a bit out of place to patent such a generic concept. As far as I know, Musical Chairs is also a musical rhythm-matching game but nobody put up any stink when Konami filed a patent for the same concept…

Kaz Hirai Dooms 360 To Short LifeKaz Hirai Dooms 360 To Short Life

Sony’s PlayStation 3 has a 10-year plan. We’ve heard about the plan, we’ve seen Sony’s current execution and we’re starting to see some of the titles making their way to the PS3 for 2009. The Xbox 360? Kaz, Sony Computer Entertainment’s head man, made his thoughts clear when speaking to Official PlayStation Magazine.

kaz“Last time I checked, they’ve never had a console that’s been on the market for more than four or five years and we’ve committed to a ten year life cycle, so you do the math…,” he says. He goes on to state that the Xbox 360 won’t have a larger install base by the end of their 10-year plan has been completed, “unless things go really bad.”

Of course, nobody says Microsoft’s 10-year plan isn’t to push out yet another console. Is that wise? We don’t really know, but you can’t count them out on it. Maybe they’ll only have half the install base but two consoles in the market within the next ten years, nobody really knows.

The one major hole we can see in his comments revolve around their claims that the Microsoft doesn’t have any history of a console being on the market for very long. If I recall, Sony managed to squeek one by on Nintendo with the original PlayStation, which changed everything for the next ten years. Sony didn’t have a 5-year track record when they started taking Nintendo down, why does Microsoft need to have an extensive resume as well?

As for Wii?

“It’s difficult to talk about Nintendo because we don’t look at their console as being competitors. They’re a different world and we operate in our world — that’s kind of the way I look at things…” (kotaku)

Say what you want about Microsoft vs. Sony, but it sure sounds like Sony doesn’t want to acknowlege Nintendo’s success because it casts a dark shadow on their own product. Nintendo and Sony have been battling for years, that’s just the way it is and that’s how the industry sees it. When NPD releases numbers, when journalists write articles about consoles and when the war is finished one thing remains constant: all three consoles are included in the equation.