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 BrĂ¼tal 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 462: Nerd RageEpisode 462: Nerd Rage

Jonah discusses his renewed views of Mass Effect: Andromeda after his long, long rant last week. It fits in with the theme of nerd rage in the news items, as well as some new games coming out. TJ and Scott talk about the games they’ve been enjoying in the past week as well, as the latter is burning through Pillars of Eternity so he can play Torment: Tides of Numenera and the eventual Pillars of Eternity II.

This week’s news includes:

  • Planescape: Torment 4K remaster comes out April 11
  • First Star Wars Battlefront 2 trailer dated for April
  • World of Warcraft has changed how enemies scale, and players are very angry
  • Destiny 2 officially announced, teasing the fall of The Last City

Let us know what you think.

Microsoft Claims EMEA Holiday Sales VictoryMicrosoft Claims EMEA Holiday Sales Victory

Microsoft is reporting their European sales are the best they’ve seen in the history of Xbox 360 sales. They’re claiming the sales are double what they were in the 2007 holiday season. They are saying 8-million consoles have been sold to date in Europe, the Middle East and Africa (EMEA).

Microsoft’s fast to push out their press release, probably hoping to overshadow any reports Sony may be releasing for sales numbers. At this point, we’ll have to believe their press release as fact until someone proves it otherwise; Microsoft would hate to be caught in a lie. Unfortunately, NPD figures aren’t collected in Europe so we have to wait for all the other metric gathering companies to release final December 2007 figures.

Sony could, in fact, see a doubling of their sales figures as well, we’ll have to wait and see.

(more…)

Activision Blizzard Official, Merger CompleteActivision Blizzard Official, Merger Complete

The deal has been done, you can now officially call the company Activision Blizzard. Sure, the name is sorta lame but it does cover the bases… they’re Activision and they’re Blizzard; surely neither company wanted to lose their lively hood and branding.

We’re now looking at a company that’s more powerful than Electronic Arts, surely this worries Electronic Arts a bit. However, consumers like ourselves should be cheering for more competition against the big EA, perhaps forcing them to innovate a bit more and keep competitive.

Many gamers and industry participants would love to see independent companies grab a bit of the market share and bring in new startup companies and spin-off studios. However, if there is going to be a merger at the top-tier it might as well be one that puts pressure on Electronic Arts.

“We have created the world leader in online and console games with this transaction, and the combined strengths of the two businesses offer immense growth potential,” gushed Vivendi SA CEO Jean-Bernard Levy. “I am also very confident that, with the new leadership team in place, the new entity is perfectly positioned to take advantage of these rapidly developing markets across the globe.” (gamespot)

Now, we’ll have to wait and see if the upper level management can get along in a fluid manner and keep all their projects on track. With great power comes great responsibility, they’ve got the power… are they going to be responsible with it?